If you are grappling with the question as to whether it is the right time to prepare a lasting power of attorney, or LPA, to take care of your financial and property affairs, it is important to fully understand the consequences and benefits.
What does LPA mean?
An LPA enables you to appoint a trusted family member or friend to legally manage your affairs in the event you become unable to do so. It is easy to think this responsibility will fall to your spouse or partner automatically, but this is not the case. You will need to appoint one or several attorneys, and each can make a range of decisions on your behalf. These decisions could concern your health and welfare alongside your finances and property.
Why do you need one?
Many people think creating a property and financial affairs LPA is only necessary for the elderly; however, capacity is not simply lost through old age. Conditions such as a stroke, brain injury, or degenerative diseases such as Alzheimer’s and dementia can all impact your ability to make financial decisions.
Without a property and financial affairs LPA, your wishes and decisions could be ignored should you lose capacity. Your bills may go unpaid, or you may lose access to your bank accounts. If you need to move home or move into a care placement, your family would be unable to take care of your property matters on your behalf. They would need to apply to the Court of Protection, which is a lengthy and expensive process, to be able to manage your finances. Creating an LPA is a much simpler process; in fact, you can even create a power of attorney online through a company such as /powerofattorneyonline.co.uk/.
Don’t forget that your LPA can only be activated on your behalf if you no longer have mental capacity or, if you have capacity, you give your nominated attorneys permission and authority to make decisions for you.
An LPA ahead of losing capacity will ensure you are covered for the future.