Creating a Lasting Power of Attorney (LPA) in the UK is crucial for ensuring that your affairs are handled according to your wishes if you lose the capacity to make decisions for yourself. Here are the key reasons why making an LPA is essential:
1. Control Over Your Future Decisions
An LPA gives you the power to choose someone you trust to make decisions on your behalf if you’re unable to do so. Without an LPA, your family may have to go through a long and costly court process to appoint someone (a deputy), and this person may not be someone you would have chosen.
You can specify how you want your attorney(s) to manage your health, welfare, and financial matters, giving you control over your future even if you can no longer express your wishes.
2. Avoid Court-Appointed Deputies
If you become unable to make decisions and haven’t made an LPA, the Court of Protection will appoint a deputy to manage your affairs. This process is often time-consuming, expensive, and leaves you with little say over who is appointed.
An LPA ensures that your choice of attorney, not the court’s, is managing your affairs.
3. Plan for Both Financial and Health Matters
There are two types of LPA:
- Property and Financial Affairs LPA: This allows your attorney to manage your bank accounts, pay bills, collect pensions, or even sell your home if necessary.
- Health and Welfare LPA: This covers personal decisions, such as where you live, your daily care, and decisions about medical treatment (including life-sustaining treatment).
You can set up both types of LPAs to ensure that all aspects of your life are covered.
4. Protection in Case of Unexpected Events
Mental incapacity can arise suddenly due to an accident, stroke, illness, or the onset of conditions like dementia. An LPA ensures that if something unexpected happens, someone you trust will make the right decisions for you.
Without an LPA, decisions may be delayed or made by someone unfamiliar with your wishes, potentially leading to outcomes you wouldn’t have wanted.
5. Reduce Stress for Loved Ones
If you don’t have an LPA and lose the ability to make decisions, your loved ones may face stress, confusion, and emotional turmoil while trying to navigate the court system to gain authority to act on your behalf.
By making an LPA, you make things easier for your family by clearly designating a person or people to manage your affairs, reducing potential disputes and confusion.
6. Tailor It to Your Needs
An LPA is highly flexible, allowing you to set specific instructions and preferences for your attorney to follow. You can also include provisions to ensure that your wishes regarding care preferences, financial management, or medical treatments are respected.
You can choose multiple attorneys and decide whether they must act together on all decisions or if they can act independently in certain situations.
7. Continued Financial Management
If you become incapacitated, your attorney can handle important financial matters such as:
- Paying bills and managing your day-to-day expenses.
- Handling investments or managing any property you own.
- Accessing and managing your pensions and other sources of income.
Without an LPA, your financial affairs may be frozen until someone is appointed to act on your behalf, which could result in missed payments or financial complications.
8. Ensure Your Health and Care Wishes Are Respected
A Health and Welfare LPA allows your attorney to make decisions about your medical care, including decisions about life-sustaining treatment. This can be particularly important if you have strong views on certain treatments, such as resuscitation or being placed on life support.
Your attorney can also make decisions about your living arrangements—whether you should stay in your own home or move into a care facility—based on your personal preferences.
9. Peace of Mind
Knowing that someone you trust will manage your affairs if you lose the ability to do so gives you peace of mind. You won’t have to worry about how your finances will be handled or whether your healthcare preferences will be respected.
Your loved ones will also feel reassured that they are carrying out your wishes, avoiding difficult decisions during emotional times.
10. Save Time and Money
Setting up an LPA is far more cost-effective and quicker than applying for a deputyship if you lose capacity. Deputyship applications can be expensive, and ongoing supervision fees can add up, whereas an LPA is a one-time cost and much simpler to set up.
Once registered, an LPA is valid until you revoke it or pass away, offering a long-term solution to managing your affairs.
11. Prevent Family Disputes
When people lose capacity without an LPA, family members may disagree over who should manage their affairs. These disputes can lead to strained relationships and even legal battles.
By clearly appointing attorneys through an LPA, you avoid potential disputes over who should take control of your decisions, ensuring your wishes are followed without family conflict.
12. It’s Easy to Set Up
Setting up an LPA is a straightforward process, and the Office of the Public Guardian (OPG) provides guidance to help you through it. You can also seek help from a solicitor if needed, especially for complex situations.
Once registered with the OPG, the LPA is ready to be used when required, providing a quick and easy way for your attorney to start managing your affairs if you lose capacity.
Summary of Benefits of Making a Lasting Power of Attorney:
- Control over who makes decisions about your health, welfare, and finances.
- Avoids the court-appointed deputy process.
- Reduces stress and confusion for loved ones.
- Ensures your preferences for health and care are followed.
- Protects your assets and financial affairs.
- Provides peace of mind and prevents family disputes.
By making an LPA, you safeguard your future and ensure that those you trust will be empowered to act on your behalf in line with your wishes. It’s a crucial step in planning for life’s uncertainties, and the sooner you create one, the better protected you will be.
Contact Aidan Squire today to setup a lasting power of attorney.