Understanding the importance of a lasting Power of Attorney
In today’s world, ensuring your future and safeguarding your interests is paramount. One crucial aspect of this is establishing a Lasting Power of Attorney (LPA) for property &finances and health & welfare. This legal document allows an individual (the donor) to appoint one or more trusted persons (attorneys) to make decisions on their behalf if they lose mental capacity due to illness, accident, or other circumstances.
What is a lasting Power of Attorney?
An LPA is a powerful tool that allows the donor to appoint an attorney to manage their affairs when they are no longer able to make decisions for themselves. There are two types of LPAs.
- Health & welfare decisions – The attorney will be responsible for making decisions on medical treatment, daily care, living arrangements, and other welfare matters.
- Property & financial affairs – This includes managing bank accounts, paying bills, selling property, and other financial matters.
Why is it important?
Establishing an LPA for health & welfare and property & financial affairs is a proactive step towards protecting your interests and ensuring yours wishes are followed when you are unable to make decisions due to loss of capacity. Imagine being unable to manage your finances or make critical health decisions. Without an LPA in place, loved ones may face significant challenges and delays in accessing and managing your affairs. By proactively setting up an LPA, you not only ensure that your wishes are carried out but also alleviate potential stress and uncertainty for your family during difficult times.
Benefits of an LPA
There is a long list of benefits of this legal document. Here are some examples.
- Peace of mind – Ensures that your preferences are respected and reduces uncertainty and stress for your family and friends.
- Control – Ensures personal wishes are honoured and that your affairs are managed according to your preferences if you lose capacity.
- Avoids court proceedings – Without an LPA, if an individual loses mental capacity, their family may need to apply to the court to appoint a deputy, which can be costly and time-consuming.
Roles and responsibilities of attorneys
An attorney has an important duty which must be followed properly.
They must do the following:
- Act in the donor’s best interests – Decisions must always prioritise the donor’s well-being and preferences.
- Following the Law and LPA terms – Attorneys must adhere to the Mental Capacity 2005 and any specific terms set out in the LPA.
- Keep accurate records: Maintain clear records of decisions and transactions to demonstrate accountability.
Common misconceptions
There are a lot of false impressions surrounding LPAs, the following are the common misconceptions:
- Only for the elderly: Mental incapacity can occur at any age due to accidents or illnesses. It’s wise for adults of all ages to consider setting up an LPA.
- Unlimited power: Attorneys must act within the bounds of the law and the donor’s instructions.
- Means losing control: Donors can specify the extent of the attorney’s powers and revoke the LPA if circumstances change.
An LPA is a necessary tool for ensuring that all affairs are managed according to one’s wishes in the event of mental incapacity. By carefully selecting trusted attorneys and clearly outlining preferences, individuals can protect their interests and provide peace of mind for
themselves and their family and friends. Establishing an LPA is a proactive step that offers security and continuity, making it a vital component of life planning.
Our strong Family Law department can assist you regarding any concerns in relation to the contents of your applications. If you require further information, please do not hesitate to contact our experienced Family Law department at Bond Adams LLP Solicitors. You can contact us on 0116 285 8080 or email us at lawyers@bondadams.com.
Contact us
Bond Adams Solicitors
Richmond House
94 London Road
LEICESTER
LE2 0QS
0116 285 8080
lawyers@bondadams.com
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