Recent media commentary on the subject of financial planning has brought an important but still underutilised legal safeguard into the spotlight. It has highlighted the need for us to not only manage our money now, but plan ahead and put protections in place, in case the unexpected should happen.

This week, consumer finance expert Martin Lewis spoke on ITV’s This Morning, emphasising the importance of putting a Lasting Power of Attorney (LPA) in place. While much of his advice usually focuses on budgeting, savings and entitlements, he was explaining how the ability for someone to legally step in and manage your affairs is just as important when planning for the future.

What is a lasting power of attorney?

A Lasting Power of Attorney is a legal document that allows you to appoint one or more trusted people (known as attorneys) to make decisions on your behalf, in the event that you lose the ability to do so yourself.

There are two types of LPA:

  • Property and Financial Affairs LPA – cover money matters such as bank accounts, bills, pensions, and property
  • Health and Welfare LPA – cover decisions about medical treatment, care arrangements and day-to-day wellbeing

Each serves a different purpose and can be tailored to suit your personal circumstances.

Why an LPA is so important

If you do not have a Lasting Power of Attorney in place, should you lose mental capacity, your loved ones do not automatically have the legal authority to manage your affairs.

This can lead to a number of issues, including:

  • Frozen bank accounts
  • Missed bills or financial obligations
  • Delays in accessing funds needed for care or living costs
  • The need to apply to the Court of Protection for authority to act

Resolving these issues can take time and can cause additional stress, cost and administrative burden at an already difficult and upsetting time.

An LPA avoids these issues by giving someone you trust the legal authority to act when needed.

You remain in control

It is a misconception that putting an LPA in place means you give up control over your affairs. Providing you have mental capacity, you remain fully in control of your own affairs. Your attorneys can only act with your consent and at your direction. Should you wish, you can also elect for the LPA only to come into effect if you lose mental capacity.

One of the biggest benefits of an LPA, is that it gives you peace of mind and enables you to plan ahead with confidence, knowing that the necessary safeguards are in place.

Planning ahead matters at any age

Many people assume that LPAs are often associated with later life planning, however they are relevant for adults of all ages.

Unexpected illness or injury can happen at any time and anyone with financial commitments, property ownership, dependants, business interests, savings or investments can benefit from an LPA.

The risks of not having one

If you do not have an LPA and something happens to you, your family may have to make an application to the Court of Protection to gain authority to act on your behalf.

This can be a costly and time consuming process that causes additional stress and uncertainty and can mean you have limited access to funds when they are needed most.

Having an LPA in place removes these barriers and ensures decisions can be made without unnecessary delay.

The importance of getting it right

A Lasting Power of Attorney is a formal legal document and must be completed and registered correctly in order for it to be valid.

If not done properly the LPA application can be rejected, there could be delays in it being registered and it could end up costing more and causing further inconvenience.

That’s why it’s a good idea to get professional advice to help ensure the document is correctly prepared and accurately reflects your wishes.

How Ison Harrison can help

At Ison Harrison, we have an experienced Wills and Probate team who can guide you through the entire process of setting up a Lasting Power of Attorney.

We can:

  • Explain the different types of LPA and which is right for you
  • Draft and prepare your documents correctly
  • Ensure your chosen attorneys are appropriately appointed
  • Support you through the registration process

We offer clear, practical advice and aim to make the process as straightforward as possible.

If you are considering setting up a Lasting Power of Attorney, contact us today to speak to a member of our Wills and Probate team and take a practical step towards protecting your future.

Call 0113 284 5000 or email hello@isonharrison.co.uk for a free, no obligation chat.