Importance of Lasting Powers of Attorney – An Insurance Policy for Later Life
Posted on in Wills & LPAs
No one wants to imagine a time when we cannot make our own decisions; it is something we all hope will never happen. But if it does, Lasting Powers of Attorney can make sure that your wishes are still being followed throughout your life, helping both you and your loved ones and providing security for your future.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (an LPA) is a document set up to allow someone or a few people (called attorneys) to act on behalf of the individual (or donor) when needed. The attorney is a person trusted and chosen by the donor. There are two types of LPA documents:
- Property and Financial Affairs, covering everything from selling a property to managing a bank account, and
- Health and Welfare, which covers things from what medical treatment you should receive and how you wish to be cared for, to day-to-day decisions, like what you want to wear or what diet you want to follow.
You can decide who to appoint, and when they can make decisions for you. You can also decide to make one or both of these documents if you feel that one is not appropriate for you.
People can worry that an LPA means your attorneys can take over your life whenever they wish without your knowledge or permission; this is not true! These documents are designed to support and assist you in later life and to make sure you can be as involved as you wish in making those decisions that affect your daily life.
Why are they important?
A recent report stated that almost 80% of adults do not have a Lasting Power of Attorney in place. This is a worrying high figure because LPAs are as important as Wills in ensuring your wishes are carried out.
The purpose and value of an LPA is that, if an individual loses capacity, then another person can make decisions and take responsibility on behalf of the donor. They are there to assist you when you are not able to make your own decisions.
You can select someone who will make any decisions that are in line with those that would have been made by you yourself, and it is always worth talking to your attorneys about your thoughts and decisions on big topics. Choosing attorneys you trust is a vital step in drafting an LPA.
In other words, LPAs give you the choice of what will happen in case of accident or loss of mental capacity.
If you choose to do both types of LPA, you can choose separate people to act as attorneys for each document – there is no requirement to have the same people managing your financial decisions and your health decisions. Property and Financial Affairs LPAs can also be set up to allow your attorneys to assist you with financial decisions while you have capacity, with your permission and only if you wish them to do so.
Many people may think that they do not need to worry about LPAs until they are unwell, or are starting to struggle to make their own decisions (struggling with their mental capacity). In fact, Lasting Powers of Attorney can take some time (currently approximately 10 weeks) to be registered by the Office of the Public Guardian, so the best time to think about these documents and start that process is when you feel confident in your ability to make your own decisions.
The later you start the process, the greater the chance you will need the documents before they have been registered.
Unfortunately, if you have lost mental capacity and are unable to make your own decisions, then it is too late to create Lasting Powers of Attorney. Without an LPA, the court may need to get involved to help make various decisions, and they may not make choices in line with your specific wishes or requests.
Why use a solicitor?
Considering creating Lasting Powers of Attorney can be overwhelming and confusing. There are various decisions that need to be made, and it can be a challenge if you are trying to do it alone or without professional advice.
Without receiving that professional advice, legal problems may arise, which could lead to both lengthy and expensive processes, each necessary to make decisions on the donor’s behalf. One of our team would be able to advise on, for example, more complex situations or tricky family dynamics, or give advice on situations that you may not have considered.
Once created and registered, LPAs cannot be amended without starting from scratch (except for removing an attorney), and therefore, sound legal advice is important to ensure everything is completed in a full, accurate, and precise manner.
Completing Lasting Powers of Attorney, even with professional help, can be a daunting process; however, when done properly, LPAs prevent complications and help avoid emotionally stressful situations and higher financial expenses further down the line, should loss of capacity occur.