A Lasting Power of Attorney (LPA) could provide you with protection when you’re most vulnerable by giving someone you trust the ability to make decisions on your behalf. Yet, a survey in the Independent, found that less than half of married couples have an LPA.
We will discuss LPAs with you as part of your annual review meeting but if you don’t yet have these in place, here are seven reasons to make this a priority.
1. The unexpected happens
No one wants to think about losing the mental capacity to make decisions themselves. Yet, it’s something that many people experience during their life.
According to the Alzheimer’s Society, someone in the UK develops dementia every three minutes. It may not be something you can change, but you can be in control of how prepared you are.
LPAs don’t have to be permanent either. If you suffered an accident or illness, you could use an LPA to allow someone to temporarily manage your affairs while you focus on recovering.
2. You can name someone you trust as your LPA
By naming an attorney through an LPA, you can choose someone you trust to act on your behalf. It means you have control over who may make decisions for you.
Without an LPA, your family could apply to the Court of Protection. However, the judge will decide who is most suitable to make decisions for you, and it might not be the person you would choose.
3. It ensures someone who cares about you can make health decisions
There are two types of LPA. The first is an LPA that covers health and welfare decisions. It would allow your attorney to make decisions about your daily routine, medical care, and moving into a care home.
Without a health and welfare LPA, it could be difficult for your loved ones to ensure you receive care or treatment if it’s needed.
4. It allows a trusted person to manage your financial affairs
The second type of LPA covers your financial affairs. If you’re unable to make decisions, it may not take long for your affairs to fall into disarray. For example, bills could go unpaid or you may not be able to collect your pension or other sources of income.
An LPA giving someone you trust the power to make decisions about your financial affairs could help with this. They may also be able to make larger decisions, such as selling your home.
5. It may provide an opportunity to set out your wishes
When you name your attorney in an LPA, you have an opportunity to prepare an advanced statement of wishes and care preferences.
The document isn’t legally binding, but it could be useful for your attorney to refer to. You could provide information about the care home you’d prefer, views on life-sustaining treatment, or possessions you’d like to pass on to a loved one.
6. It could help protect you from fraud in the future
A report from UK Finance found in 2022 £1 billion was lost to fraud – that’s the equivalent of around £2,300 stolen every minute. While criminals use a variety of tactics, targeting vulnerable people is a common one.
Having a property and financial affairs LPA in place means someone you trust can manage your bank accounts, savings, and more. It may mean fraud is spotted sooner or even prevented.
7. An LPA may form part of your wider estate planning
As part of your estate planning, you may be thinking about how you’d like to manage and pass on assets. Having an LPA in place may ensure your wishes are followed even if you can’t make decisions yourself.
We will discuss LPAs with you each year as part of your review meeting and are very happy to refer you to one of our trusted solicitors to draft these documents for you if these are something you still need to address. Or, if you would prefer to deal with this now, please just ring us on the usual office number, 01273 407500, and your Financial Planner will be very happy to set the wheels in motion.
Risk warning
Please note:
This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate estate planning.