Have you ever wondered what would happen if you couldn’t make decisions for yourself? It’s a scenario that many of us prefer not to think about, but nevertheless, planning for such possibilities is crucial. That’s where Lasting Powers of Attorney (LPAs) come in. In this comprehensive guide, we’ll explore what LPAs are, why they’re essential, and how to set them up.
What is a Lasting Power of Attorney?
First and foremost, a Lasting Power of Attorney is a legal document that allows you (the “donor”) to appoint one or more people (your “attorneys”) to make decisions on your behalf. In essence, it’s like a safety net, giving you control over your affairs even if you lose the ability to manage them yourself.
The Importance of LPAs
Now, imagine you have an accident or develop an illness that affects your decision-making capacity. Without an LPA, your loved ones might struggle to manage your finances or make healthcare decisions for you. Consequently, an LPA ensures your wishes are respected and your affairs are handled by someone you trust.
However, it’s not just about trust. More importantly, it’s about giving your loved ones the legal authority they need to help you when you need it most. Without an LPA, even your spouse might find themselves unable to access your accounts or make crucial decisions on your behalf.
Who Can Make an LPA?
You might be wondering who’s eligible to create an LPA. Surprisingly, creating an LPA is simpler than you might think. To begin with, you need to be over 18 years old and have mental capacity when you make the LPA. Interestingly, you don’t need to live in the UK or be a British citizen to make one. Ultimately, it’s about planning for your future, wherever you are.
Types of LPAs: Covering All Bases
It’s important to note that there are two types of LPAs, and you might need both:
1. LPA for Financial Decisions
2. LPA for Health and Care Decisions
Let’s break these down:
Financial LPA: Managing Your Money and Property
First of all, this LPA is like appointing a trusted financial manager. Your attorneys can buy or sell property, pay your mortgage and bills, invest your money, and arrange property repairs. Additionally, you can choose whether this LPA can be used while you still have mental capacity or only if you lose capacity. As a result, it’s flexible, allowing you to retain control while you’re able, but ensuring someone can step in when needed.
Health and Care LPA: Looking After Your Wellbeing
On the other hand, this LPA only comes into effect if you lose mental capacity. It covers decisions about your living arrangements, medical care, diet, social activities, and even life-saving treatment. In other words, it’s about ensuring your personal wishes are respected, even when you can’t express them yourself.
Do Married Couples Need LPAs?
Here’s a common misconception: many people assume that marriage or civil partnership automatically grants their spouse the right to make decisions on their behalf. However, this isn’t the case. Even if you’re married, you still need an LPA. Otherwise, your spouse might struggle to manage your finances or make healthcare decisions for you.
A Cautionary Tale: The Johnsons’ Story
To illustrate this point, consider the story of Mark and Sarah Johnson. When Mark suffered a severe stroke, Sarah discovered she couldn’t access his bank account, sell their house, or make decisions about his medical treatment. As a result, she had to go through a lengthy and costly process of applying to the Court of Protection. An LPA could have prevented this stress and delay.
Creating Your LPA: A Step-by-Step Guide
Now that we understand the importance of LPAs, let’s look at how to create one. Making an LPA involves several steps:
1. Choose your attorneys carefully. Consider their skills, trustworthiness, and willingness to take on the role.
2. Decide on any instructions or preferences you want to include.
3. Fill out the LPA forms. You can do this online or by post.
4. Get your LPA signed by a “certificate provider” who confirms you understand what you’re doing and aren’t being pressured.
5. Have your LPA signed by witnesses.
6. Finally, register your LPA with the Office of the Public Guardian (OPG).
The Registration Process
It’s worth noting that the registration process typically takes around 20 weeks, so it’s best to start early. In other words, don’t wait for a crisis to begin this process. By planning ahead, you can ensure everything is in place when you need it.
The Cost of Peace of Mind
You might be wondering about the cost. Currently, registering each LPA costs £82, so it’s £164 for both types. However, some people may qualify for a reduction or exemption based on their income or if they receive certain benefits. When you consider the potential costs and stress of not having an LPA, this fee is a small price to pay for peace of mind.
Protecting Yourself: Safeguards in LPAs
While LPAs are incredibly useful, it’s important to be aware of the potential for abuse. Therefore, here are some safeguards you can put in place:
– Choose attorneys you trust implicitly
– Appoint more than one attorney
– Include a replacement attorney
– Specify that attorneys must act jointly on important decisions
– Ask for regular financial updates to be sent to a trusted third party
These measures can help ensure your LPA works as you intend, providing protection and peace of mind.
Changing Your Mind: Modifying or Revoking an LPA
Life is unpredictable, and circumstances can change. Fortunately, you can modify or revoke your LPA as long as you have mental capacity. For minor changes, like a change of address, you can notify the OPG directly. For significant changes, such as changing your attorneys, you’ll need to revoke the existing LPA and create a new one.
Timing is Crucial
Remember, timing is crucial when it comes to changes. If you’re revoking a registered LPA, do it as soon as possible. Your attorneys can continue to make decisions until they’re officially notified of the revocation. Therefore, prompt action is essential to ensure your wishes are upheld.
What If You Don’t Have an LPA?
If you lose mental capacity without an LPA in place, your loved ones would need to apply to the Court of Protection to become your deputy. This process is often lengthy, costly, and stressful. Therefore, it’s far better to have an LPA in place before you need it.
Looking Ahead: Digital LPAs
The future of LPAs is digital. Currently, the government is working on introducing digital LPAs to make the process quicker and easier. This development promises to streamline the process, making it more accessible for everyone. Consequently, setting up an LPA may become even simpler in the near future.
Taking the Next Step
In conclusion, setting up an LPA is about planning for the unexpected and ensuring your wishes are respected. It’s an act of care for yourself and your loved ones. So, why not start the process today?
If you have questions or need guidance, we’re here to help. At A.D.E Wills, we specialise in helping people like you navigate the complexities of LPAs. Therefore, don’t hesitate to reach out. Give us a call on 01865 507174 or email us at info@adewills.co.uk. We’re ready to assist you in securing your future decisions.
Disclaimer
This article provides general advice about Lasting Powers of Attorney. For specific guidance tailored to your individual circumstances, please consult with a legal professional.
