A Lasting Power of Attorney could be one of the most important documents that you will ever make. It is a document which allows you to nominate certain designated ‘Attorney’s’ to manage your affairs should you become ‘incapacitated’ through and Illness or Accident.
The Importance of a Lasting Power of Attorney
Don’t Leave it until it’s Too Late
A Lasting Power of Attorney (LPA) must be made when an individual making the Power of Attorney (Donor) has mental capacity. Waiting until an event occurs is too late. Therefore thee documents should be made and registered with the Office of the Public Guardian as soon as possible.
What if I don’t have a Power of Attorney?
Not having a Power of Attorney means that should you become incapacitated then your affairs are likely to be handled by the Court of Protection. That is a Court who Protect the Interests of Vulnerable People. This can be difficult for the families and partners of the incapacitated individual as their assets (including joint bank accounts) are likely to be frozen. The families and partners of said individual will have to apply to the Court of Protection for Deputyship. This is a process that can take several months and cost a considerable sum of money.
Types of Lasting Powers of Attorney
Since 2007, there have been 2 types of Lasting Powers of Attorney which have replaced the previous Enduring Powers of Attorney, the first being a Property & Finance LPA and the second being a Health & Welfare LPA.
Property & Finance
As the name suggests, the Property & Finance LPA allows attorneys to make decisions regarding finance. In the case of Business Owners, they may wish to have different attorneys handing their business affairs i.e. Accountant or Business Partner to their Personal Finances i.e. Partner or Family. A well drafted LPA can achieve both objectives.
A Property & Finance Lasting Power of Attorney can help;
- Attorneys buy and sell Property
- Using and managing money in the name of the Donor
An Attorney cannot;
- Make a Will on the Donors behalf
- Access the Donors Will unless they have granted them authorization to do so
A Property & Finance LPA can be used both when the Donor has and has lost mental capacity.
Health & Welfare
A Health & Welfare LPA allows designated attorneys to make decisions regarding Health matters for a Donor. This type of LPA can only be used when the Donor has lost mental capacity
A Health & Welfare Power of Attorney can help;
- Attorneys make decisions about a Donors Treatment (where and how this is provided)
- Attorneys to make decisions about whether the Donor stays in their home or goes into care
An Attorney cannot;
- Make decisions about treatment governed under the Mental Health Act 1983 part 4
How Do I Make A Power of Attorney?
Give us a Call on 0333 300 1882 or email us at email@example.com or complete the Contact Form and one of our Professional Consultants will be in contact to help you and answer any questions which you may have.