More people than ever are preparing Lasting Powers of Attorney (LPAs). These give the designated attorney authority to manage your affairs - which could include oversight of your estate and/or healthcare decisions.
LPAs are not just for the very elderly or those with a long-term illness - an accident or sudden diagnosis can strike at any time.
Without an LPA, your loved ones would need to apply through the courts for a deputyship order. That process can take up to a year, cost up to £5,000 and leave your finances frozen in the meantime.
Here are the key points to consider when making an LPA:
1. Make sure you appoint the right attorneys
When deciding to name LPAs, it is important to make the right choice to ensure that your wishes are carried out. It is crucial to speak with your family to discuss who you would want to take responsibility for your financial affairs.
Wherever possible, try to make sure you name more than one attorney - something may happen which means one attorney won’t be able to make decisions on your behalf. We would suggest that you name two or three attorneys to have peace of mind, but it is important that they all have a good relationship with you, with each other and, if at all possible, with others who will be interested in your wellbeing. If you only name one attorney but name a substitute, there will still be delay as the Office of the Public Guardian processes the change if your primary attorney can no longer act and if no substitute is named then you will be left without a workable LPA if your only attorney can no longer act.
2. Decide how your attorneys will act
You can choose whether your attorneys must act jointly (making all decisions together), jointly and severally (each can act independently), or a mix of both depending on the decision. A joint and several appointment offers flexibility and can prevent unnecessary delays in urgent situations.
3. Consider different types of LPA
There are two types of LPA:
- Property and Financial Affairs LPA - allows your attorney(s) to make decisions about your money, bills, property and investments.
- Health and Welfare LPA - allows your attorney(s) to make decisions about medical care, daily routines and even life-sustaining treatment like CPR.
You can create one or both types depending on your needs.
4. Don’t forget about business interests
If you run a business, you may wish to create a separate LPA solely for business decisions. This ensures continuity and clarity in how your business is managed if you are no longer able to make decisions.
How TWM can help
At TWM, our specialist solicitors have extensive experience in crafting bespoke LPAs to meet the unique needs of individuals.
If you have any questions or would like to discuss making an LPA, please contact our expert Private Client team for an initial no-obligation consultation.