What Is a Lasting Power of Attorney? Do I Need It?

A Lasting Power of Attorney (LPA) is a legal document that gives an attorney the right to help you make decisions - or make decisions on your behalf. And yes, you definitely need it.

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A Lasting Power of Attorney (LPA) is a legal document in which someone (the donor) gives one of more people (the attorneys) the right to help them make decisions - or make decisions on their behalf.

With an LPA, you have more control over what happens if you can’t make decisions for yourself. This includes choices about your finances, health and welfare.

An LPA is separate to your Will. When planning for the future, many people get both documents in place at the same time. Whilst a Will protects your interests after you’ve died, an LPA protects your interests while you’re still alive and kicking.

In England and Wales there are two types of LPA. One looks after health and welfare, the other is responsible for property and financial decisions.

Your LPA for Health and Welfare can make decisions about:

Living arrangements
Medical care
Social activities and contacts
Life- saving treatment

Your LPA for Property and Financial Affairs can make decisions about:

Buying and selling property
Mortgage payments
Investments
Bill payments and repairs

Do I need to set up a Lasting Power of Attorney?

In short: yes. If you lose mental capacity without having an LPA in place, your assets would effectively be frozen. Your next of kin would not be legally entitled to make healthcare decisions for you either. An LPA ensures that the people who know you best can make the right decisions on your behalf.

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Understanding legal capacity

You can only put an LPA in place if you have the required legal capacity. This means that you’re capable of understanding the nature and effect of the document. Noone can enter into an LPA on your behalf.

Can my spouse take care of my financial affairs?

Without an LPA in place, there is no one with the legal authority to manage your affairs. Many people assume that their spouse, partner or children will be able to take care of things. Sadly, this is not the case. For someone to obtain legal authority over your wellbeing, they will need to undergo a lengthy (and expensive) application process through the Court of Protection. In the meantime, your assets would effectively be frozen.

Ok. But what about medical decisions?

The same applies. Without the legal framework of an LPA, your next of kin would not be entitled to make healthcare decisions for you. If you can’t communicate your wishes, you could end up in a care home when you may have preferred to stay home. Or you might receive medical treatments that you would otherwise have refused.

Creating your LPA

You need to be at least 18 years old to create an LPA. It must be signed by your donor, attorneys and a person known as a Certificate Provider.

The Certificate Provider confirms that you understand what you’re doing by granting power of attorney - and that you’re under no pressure to give it.

Protect your interests with a Lasting Power of Attorney

Life has a way of throwing time-sensitive curveballs at us. Avoid unnecessary delays and get an LPA in place to ensure the people who know you best can make decisions in your best interest.

At Oury Clark, we pride ourselves on straight talking advice that cuts through the jargon. Chat with a member of our team today to get the ball rolling.

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