When asked, most people will tell you they have written a Will, or intend to. Ask about Lasting Powers of Attorney however and far fewer people have heard of them, let alone have one in place. This article aims to help people to understand the basics.

 

What

So, what is a Lasting Power of Attorney? In simple terms, it allows you to appoint one or more people to make decisions on your behalf if you are unable to do so because of mental or physical incapacity.

Creating a lasting power of attorney (LPA) whilst you are still fit and healthy can reduce significant amounts of trouble and expense in the event that something happens to you.

There are two types of LPA:

  • Property and financial affairs
  • Health and welfare

Appointing an attorney to manage your property and financial affairs can allow them to manage bank and building society accounts, pay bills, collect benefits or pensions and buy or sell property on your behalf. For as long as you have physical and mental capacity your attorney can only act with your permission.

Health and welfare LPAs only come into effect in the event that you lose the ability to make decisions about your personal wellbeing. An attorney is able to make decisions about your healthcare and living requirements.

 

Who

You can appoint anybody over the age of 18 who has the capacity to make their own decisions and is not bankrupt or subject to a debt relief order. In reality, most people appoint a close friend or relative. It is worth considering an additional attorney if you plan to appoint your spouse or partner, in case the loss of capacity is due to an accident that you are both involved in.

 

Why

Without a power of attorney, nobody has legal right to access your bank accounts or communicate with anybody on your behalf.

In addition, you cannot create an LPA once you have lost capacity – in these circumstances your spouse or family would need to apply to the Court of Protection to act as your Deputy. This only allows them to make basic financial decisions on your behalf, and the process of application is long-winded and expensive.

Therefore, putting an LPA in place whilst still fit and healthy could potentially save time, money and heartache further down the line.

You can obtain the forms for an LPA on the gov.uk website at

http://www.gov.uk/power-of-attorney/overview, although we tend to recommend that clients deal with a solicitor if they are unsure about any element of the process.