Lasting Powers of Attorney
A Lasting Power of Attorney ( LPA ) is a legal document which allows a person ( called the donor ) to appoint someone they know and trust to make decisions on their behalf should they become unable to do so in the future . This person is called an attorney and they must always act in the best interest of the donor . An LPA can only be created if you have mental capacity .
There are 2 types of LPA : –
• Health and Welfare
• Property and Financial Affairs
What decisions can be made with either LPA ?
Health and Welfare
• Day-to-day decisions such as exercise and dietary requirements
• Medical care
• Life-sustaining treatment
• Relocation into a care home or sheltered accommodation
A Health and Welfare LPA can only be used once it has been registered with the Office of Public Guardian ( OPG ) and when the donor loses mental capacity .
Property and Financial Affairs
• Managing bank accounts
• Paying bills
• Collecting income and benefits
• Making decisions with regard to the home
• Selling the home
• Managing investments
It is important to note that Property and Financial Affairs LPA can be used as soon as it has been registered with the OPG . The LPA may state that it can only be used when the donor has lost mental capacity so the attorneys will need to check and may also be required to provide evidence of the donor ’ s loss of capacity before using the LPA .
Appointing an Attorney
You would need to think about who you would appoint as your attorney ( s ). It needs to be someone who you fully trust to look after your affairs and act in your best interest . Normally 1-4 attorneys can be appointed . Attorneys can act either : –
Jointly – attorneys must agree unanimously on every decision ; Jointly and severally – attorneys can make decisions on their own or together ; or Jointly for some and jointly and severally for other decisions – attorneys must agree unanimously on some decisions but can make others on their own .
If you don ’ t put provisions in place during your lifetime and die without making a Will , the laws of intestacy will govern how your estate will be distributed which means your estate could go to someone you would not have chosen to distribute it to . Aside from this , inheritance tax may be payable too .
There is also a common misconception that those who are unmarried and have been in a relationship for a long time will benefit from their partner ’ s estate on death . Unfortunately , this is not the case and we have seen this happen all too often .
Once you have made your Will , it ’ s important that you review it at least every 3-5 years or when there is a change in your personal circumstances i . e . marriage or the birth of any children . Did you know marriage can revoke a Will ?
the society of will writers
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