The importance of setting up a Lasting Power of Attorney

In life, unexpected events can occur that may leave us unable to make decisions for ourselves. Whether it’s due to illness, injury or old age, having a plan in place to protect our interests becomes crucial. In any of these circumstances, we will need a Power of Attorney to ensure someone trustworthy can make decisions on our behalf. In this blog, we will explore the significance of having an LPA in place and why it is an essential legal document for everyone to consider.

Key takeaways

• A Lasting Power of Attorney (LPA) is a legal document that allows an individual, known as the donor, to appoint someone they trust to make decisions on their behalf.
• There are two types of LPAs: one for financial decisions and another for health and welfare decisions.
• Having a Lasting Power of Attorney in place is a vital step in planning for the future and protecting your interests.

1. What is a Lasting Power of Attorney

A Lasting Power of Attorney (LPA) is a legal document that allows an individual, known as the donor, to appoint someone they trust, known as an attorney, to make decisions on their behalf if they become unable to do so themselves.

There are two types of LPAs: one for financial decisions and another for health and welfare decisions.

The financial LPA grants the attorney the authority to manage the donor’s finances, such as paying bills or selling property. The health and welfare LPA allows the attorney to make decisions about the donor’s medical treatment, care, and daily routine. It is important to note that an LPA can only be created while the donor has mental capacity.

2. Protecting your interests

By creating an LPA, you are proactively safeguarding your interests and ensuring that your wishes are respected, even if you are unable to communicate or make decisions. This legal document allows you to appoint a trusted person, known as an attorney, to act on your behalf and make important decisions regarding your finances, property and healthcare.

3. Financial matters

An LPA for financial matters grants your chosen attorney the authority to manage your finances, pay bills, access bank accounts, and make investment decisions. Without an LPA, your loved ones may face significant challenges in handling your financial affairs, leading to delays, confusion, and potential financial hardships.

4. Health and Welfare

An LPA for health and welfare empowers your attorney to make decisions about your medical treatment, living arrangements, and other personal matters. This ensures that your preferences and values are respected, even if you are unable to express them yourself. It provides peace of mind knowing that someone you trust will make decisions in your best interest.

5. Avoiding Court Prevention

Without an LPA in place, if you lack mental capacity, your loved ones may need to apply to the court for a deputyship order to make decisions on your behalf. This process can be time-consuming, expensive and may not align with your wishes. By having an LPA, you can avoid court intervention and maintain control over who represents your interests.

6. Choosing your Attorney

Creating an LPA allows you to carefully select and appoint an attorney whom you trust implicitly. This person should have your best interests at heart and be capable of making decisions in line with your values and preferences. It is crucial to have open and honest conversations with your chosen attorney to ensure they understand your wishes.

Having a Lasting Power of Attorney in place is a vital step in planning for the future and protecting your interests. It provides you with peace of mind, avoids potential disputes, and ensures that your wishes are respected even if you are unable to make decision for yourself.

Get in touch with us today

Whichever way you look at it, setting up a Lasting Power of Attorney is the best possible way of protecting yourself in case of losing mental or physical capacity, and the sooner you do it, the better (read our article on when you should create a Lasting Power of Attorney). Speak to our expert LPA team today on 01525 378177 or email info@ommlaw.co.uk.