Life is unpredictable. While we hope for smooth sailing, it's wise to prepare for unforeseen circumstances. One essential way to ensure your affairs are managed if you become unable to do so yourself is through a Lasting Power of Attorney (LPA). This legal document might not be something you think about often, but it can be crucial for protecting your interests and those of your loved ones.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that allows you to appoint one or more people (known as attorneys) to help you make decisions or to make decisions on your behalf if you're no longer able to. There are two types of LPA:
- Health and Welfare LPA: This covers decisions about your personal health and welfare. It can include decisions about medical treatment, moving into a care home, and your daily routine.
- Property and Financial Affairs LPA: This deals with financial matters such as managing bank accounts, paying bills, and selling property.
Why is Having an LPA Important?
- Ensures Your Wishes are Followed
With an LPA, you choose who makes decisions on your behalf. This means that someone you trust will be in charge, ensuring that your wishes are followed. Without an LPA, the Court of Protection may appoint someone to make decisions for you, and this might not be someone you would have chosen.
- Reduces Stress for Loved Ones
If you lose the ability to make decisions, it can be a stressful and emotional time for your family. Having an LPA in place reduces the burden on your loved ones, as they won't need to go through lengthy and expensive court proceedings to gain the authority to manage your affairs.
- Provides Clarity in Difficult Times
In the event of sudden illness or an accident, having an LPA provides clear instructions on who should manage your health and financial matters. This clarity helps avoid potential disputes among family members during what is already a challenging time.
- Protects Your Finances
A Property and Financial Affairs LPA ensures that your finances are managed effectively if you become incapacitated. Your appointed attorney can handle everything from paying your mortgage to managing investments, helping to safeguard your financial wellbeing.
- Offers Peace of Mind
Knowing that there is a plan in place if you can't make decisions for yourself brings peace of mind. You can rest assured that your affairs will be handled according to your preferences, and your loved ones will be spared additional stress.
How to Set Up an LPA
Setting up an LPA involves a few steps:
- Choose Your Attorneys: Select people you trust to make decisions on your behalf. It's important to discuss this with them to ensure they are willing and understand your wishes.
- Complete the LPA Forms: You can fill out the forms online or use paper forms available here.
- Register the LPA: Send the completed forms to the Office of the Public Guardian for registration. This process can take several weeks, so it's best to do it well in advance of when you might need it.
- Pay the Fee: There is a fee for registering each LPA, but exemptions and reductions are available for those with low incomes.
- Store Safely: Once registered, keep the original document in a safe place and provide copies to your attorneys and relevant institutions, such as your bank, financial planner or GP.
Final Thoughts
Planning for the future might not be the most pleasant task, but it is one of the most important. By setting up a Lasting Power of Attorney, you ensure that your affairs are handled by people you trust if you're unable to do so yourself. It's a small step that can make a huge difference, providing security and peace of mind for you and your loved ones.
Many people believe that LPAs are only for older people. That is not the case. Remember, it's never too early to prepare for the future. Consider setting up an LPA today to safeguard your tomorrow.