Everybody knows what a Will is and why they are so important – to protect your family and assets when you die. However, many people are unaware of a similar set of documents, known under the umbrella term ‘Lasting Power of Attorney’ (LPA), which are equally as important. LPAs protect you, your family and your assets whilst you’re still alive. At any stage of life, illness or injury could make you temporarily or permanently unable to handle your affairs. You may assume that your loved ones will be able to step in and look after you and your finances in your time of need, but without the appropriate LPAs in place, they won’t have the legal right to do so. Instead, decisions regarding your health, welfare, finances and property will be made by social services or the state – which can lead to unfavourable outcomes and complex and expensive court procedures. In this guide, we’ll explain what the two types of Lasting Power of Attorney are, how they work and how you
Types of Lasting Power of Attorney
There are two types of Lasting Power of Attorney, each one giving your chosen ‘attorney’ a set of powers to look after different areas of your life. Most people take out both LPAs at the same time to ensure all their affairs can be handled instantly and seamlessly by the people they trust the most. Let’s have a look at the two types of LPA you may want to make.
Property & Financial Affairs LPA
This type of LPA gives your attorney(s) the power to handle your property and finances. If you ever lost mental capacity, you would likely still need access to your bank accounts, utility and insurance policies, and assets to keep everything running smoothly. You may need to fund your day-to-day life, medical treatments, or help family members; and you might also need to buy, sell or manage property. If you have lost the mental capacity to handle these tasks, your attorney will be able to access accounts and assets on your behalf and he or she will be legally required to act only in your best interests. Another reason a Property & Financial Affairs LPA is so important is that it allows family members who rely on accounts, policies and assets in your name to be able to continue to live as normal. Without one, they will not be able to access these which can lead to all sorts of problems. To see an example of how this scenario could affect your family, please read Kate Garraway’s story here.
With a Property & Financial Affairs LPA, your attorney will be able to manage things like:
- pensions, benefits, tax, and debts
- bank and building society accounts
- insurance policies and utility bills
- selling, buying or managing property
Health & Welfare LPA
This type of LPA gives your attorney(s) the power to make decisions regarding your health and welfare. In your time of need, you likely want someone you know and trust to look after you or at least have an input in your day-to-day care, living accommodation and medical treatments. Without a Health & Welfare LPA, these decisions will be made by social services and your family will be left unable to help. This could lead to you living in a care home against your family’s wishes or not receiving the medical treatment you need. With an LPA in place, your loved ones can work with social services to ensure you are looked after how and where you would wish, and your attorney will have the final say in most decisions.
With a Health & Welfare LPA, your attorney will be able to manage things like:
- where you should live
- your day-to-day care, including food, clothes and activities
- what medical treatment you should and shouldn’t receive
- what general healthcare you should and shouldn’t receive
How Do I Get a Lasting Power of Attorney?
The most important thing to understand is that a Lasting Power of Attorney cannot be made once you have lost mental capacity. In other words, similar to a Will, you should make an LPA long before you expect it may be needed. Once you’ve made your LPAs, you can get on and enjoy life with the peace of mind that if you ever become ill or injured your loved ones can step in and help you smoothly and seamlessly.
A Property & Financial Affairs LPA can actually come into effect whenever you give your permission for it to do so, or it will automatically come into effect if you ever lose the mental capacity to make decisions for yourself. A Health & Welfare LPA will only come into effect if you lose the mental capacity to look after yourself sufficiently.
At Michael Usher Wills & Estate Planning, our team of LPA experts can help you make both types of LPA and we offer a discount when making them at the same time. You can choose one or more attorneys and you can also limit the powers they receive if you wish. We’ll explain everything you need to know and write your LPAs professionally, before registering them with the Office of Protection on your behalf. Simply book a FREE consultation to get started or give us a call if you have questions.
The Bottom Line
Lasting Power of Attorney is a way to legally give someone you trust the power to look after you and handle your affairs if you ever need them to due to illness or injury. Importantly, you cannot make an LPA at the time you need it, so you must make one well in advance whilst you are still in good health. There are two types of LPA, a Property & Financial Affairs LPA and a Health & Welfare LPA, each giving your chosen attorney(s) a specific set of powers. It’s most common to make both LPAs together to ensure your family can handle all areas of your life in your time of need, or at least to give them the power to intervene where necessary. Just like making a Will, making your LPAs will give you peace of mind that you, your family and your assets will always be in safe hands.
Here at Michael Usher Wills & Estate Planning, we’ve been helping our local community with LPAs for over 30 years! Please get in touch and our friendly team of experts will answer all of your questions for free. Call us on one of the numbers below or book a FREE consultation. We look forward to helping you and making sure you and your family are fully protected!
Camberley: 01276 691979
