Lasting Power of Attorney

Have you ever considered what would happen if you lost physical or mental capacity and were no longer able to make your own decisions? Who would you trust to act on your behalf?

A Lasting Power of Attorney (LPA) is a document which gives someone else that you trust, the permission to legally act on your behalf and to make decisions for you. Without an LPA, your loved ones could be forced to endure a lengthy and costly process to obtain authority from the Court of Protection.

Losing capacity to manage your financial affairs

It is not difficult to imagine the problems that could arise if you lost your capacity to manage your financial affairs. Without access to bank accounts, pensions and investments, your family and friends would face an additional burden at an already stressful time.

Ensuring an LPA is in place should be a key consideration in all financial planning or protection insurance planning conversations. Having plans in the event of physical or mental incapacity should sit alongside any planning for ill health or unexpected death.

Types of Lasting Power of Attorney

There are two types of LPA:
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An LPA for property and financial affairs

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An LPA for health and welfare

Whilst we would consider them equally important, you can choose to do either or both.

Once complete and these have been registered with the Office of the Public Guardian (OPG), your Attorney(s) can make decisions for you if you no longer wish to or lack the mental capacity to do so.

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When will I need a Lasting Power of Attorney?

There are several reasons why you might need an Attorney to make decisions for you or to act on your behalf:
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A temporary situation: for example, if you are working away overseas for a period; or if you are in hospital and need help with everyday tasks such as paying the bills.

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On diagnosis with a condition such as dementia and where you may lose the capacity to make your own decisions in the future.

The reality is that if you develop an illness or are suffer an injury that leaves you mentally incapacitated, and you don’t have an LPA in place, you run the risk of a long and potentially distressing court process for your loved ones.

It is important that you set up an LPA sooner rather than later and when you still have the mental capability to do so.

Let us help

Below we have listed some frequently asked questions. If you are worried about what would happen in the event you or a loved one lost capacity and would like some professional assistance in setting up an LPA, please get in touch.

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Frequently Asked Questions

Why should I set up a Lasting Power of Attorney?
Without an LPA in place your relatives will have to apply to the Court of Protection for deputyship. This can be a costly and time-consuming process.

Having an LPA in place ensures you and your family are protected, and someone trusted will be allowed by law, to look after your best interests if you lose the ability to do so yourself.

Can I choose how many people I appoint to act as my Attorney?
You are free to appoint as many Attorneys as you wish. If you appoint more than one, you can specify whether they always must act together or if each Attorney can act individually
What are the different types of Lasting Power of Attorney?
The two different types of LPA are for Property & Finances, and for Health and Welfare.
What financial arrangements can be made by a person granted Power of Attorney?
They can deal with all aspects of your property and financial affairs – unless you expressly exclude them dealing with a particular asset.

An instruction must always be followed; a preference is just an indication as to what you would want them to do.

What is a Lasting Power of Attorney for Health and Welfare?
This LPA gives authority for your Attorneys to make decisions about your care and personal welfare once you lack mental capacity.

This can include many aspects: such as where you live, your medical treatment, your daily routine and even what you can eat or the clothes you wear.

It only comes into effect on losing mental capacity and your attorneys can’t use it to force a medical practitioner to administer a particular type of treatment.

Can I state when a Lasting Power of Attorney comes into effect?
For a Financial and Property LPA, yes. You can state whether your LPA can be used upon registration or only once you have lost capacity.

A Health and Welfare LPA can only come into effect once you have lost mental capacity to make your own decisions.

If I have lost capacity, could my Attorney(s) make gifts to themselves or others – or even re-write my Will?
There a very limited circumstances where attorneys could make modest gifts on your behalf and anything more would require approval from the Court of Protection. An Attorney has a duty act in your best interests and cannot personally benefit from acting for you.

An Attorney does not have authority to change your Will.

Can I cancel my lasting Power of Attorney if I change my mind?
Yes, an LPA can be cancelled at any time provided you still have mental capacity. There is an appropriate form you will need to sign, and this will need to be registered with the Office of the Public Guardian.

If you wish to make amendments to your LPA in the future, you will need to create a new one, as it is not possible to amend an existing document.

Why do I need help from a professional to set up a Lasting Power of Attorney?
Whilst it is possible to apply for an LPA yourself, some people can find the paperwork involved daunting to complete and it is also easy to make a mistake. This could see your application rejected or create an LPA that does not do what you intended. This can be especially stressful if you need your LPA registered as quickly as possible.

Take control of your financial future

Contact First Equitable today and take control of your financial future; together we will chart your journey towards achieving your goals and objectives.
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