When planning for the future, many people focus on wills and inheritance. But what happens if you lose the ability to make decisions whilst you’re still alive? That’s where a Lasting Power of Attorney (LPA) becomes essential.
There are two types of LPA in England and Wales:
- Property and Financial Affairs LPA – allows someone to manage your finances, such as paying bills, managing bank accounts, or selling property.
- Health and Welfare LPA – allows someone to make decisions about your medical treatment, care arrangements and daily routine if you become incapable.
Let’s take a look at how these work in practice:
Case Study 1: Managing Finances After a Stroke
Mr. Jones, a retired teacher, suffered a stroke that left him unable to manage his finances. Fortunately, he had appointed his daughter as his attorney under a Property and Financial Affairs LPA. She was able to access his bank accounts, pay his care home fees, and manage the sale of his home to fund long-term care. Without this LPA, she would have needed to apply to the Court of Protection, leading to a costly and time-consuming process.
Case Study 2: Making Medical Decisions in a Crisis
Jo was the attorney for her brother Sam, who had learning difficulties. When Sam was hospitalised, Jo was able to make decisions about his treatment and care because she held a Health and Welfare LPA. This included choosing a care home and consenting to medical procedures. The LPA ensured Sam’s wishes were respected and meant that Jo was entitled to talk to doctors on Sam’s behalf.
Common Myths About LPAs
- “I don’t need an LPA unless I’m elderly.” – False. Mental incapacity can happen at any age due to illness or accident. LPAs are just as important for younger adults. Unfortunately none of us have a crystal ball.
- “My spouse can automatically make decisions for me.” – Not true. Without an LPA, even a spouse or civil partner cannot legally manage your finances nor are they entitled to make medical decisions on your behalf.
- “Someone already has third party access to my accounts, so I don’t need an LPA for them to manage my finances.” – Not true. In a lot of cases third party access is revoked by the bank if you lose mental capacity. An LPA is much more robust and grants your attorneys proper legal authority to manage your financial affairs.
- “The executor in my will is automatically my attorney” – False. Your will has no connection to your LPA. Whilst your attorneys and your executors can be the same people, your will only takes effect on your death. LPAs appoint individuals to manage your affairs during your lifetime.
Why Use a Solicitor?
There are several reasons why using a solicitor to prepare your lasting powers of attorney is strongly recommended:
- Avoiding costly mistakes: Errors in the forms can lead to them being rejected by the Office of the Public Guardian (OPG), delaying registration, leaving you unprotected and potentially resulting in additional court fees.
- Tailored advice: A solicitor can help you include specific instructions or preferences if they would be of benefit. They can advise you as to how to appoint your attorneys and how to use the LPAs in practice.
- Safeguarding against abuse: Solicitors act as certificate providers, confirming that you understand the LPA and are not under pressure – an important safeguard against coercion.
- Free storage: At Ison Harrison we also store your original LPAs for you, so you don’t need to worry about losing or damaging them.
Final Thoughts
Creating a Lasting Power of Attorney is one of the most important steps you can take to protect your future. Whether it’s managing your finances or making critical health decisions, an LPA ensures your wishes are respected and your loved ones are empowered to act on your behalf. It means you have done the necessary preparation now so that your family do not face a difficult situation if something unexpected happens.
If you’d like to discuss setting up Lasting Powers of Attorney, our team at Ison Harrison are here to help. We offer clear, compassionate advice and a streamlined process tailored to your needs. Please give our Castleford office a call on 01977 557 171 or email hello@isonharrison.co.uk and one of our legal experts would be happy to have a free consultation with you.