What is a Lasting Power of Attorney and Why Do You Need One?

Many people have misconceptions about Lasting Powers of Attorney (LPAs) and overlook the importance of how an LPA works and how to make informed decisions.

Francesca Rigby, Senior Associate and Head of the Wills, Probate & Planning for the Future Team at Bromleys Solicitors, explains what an LPA is and why you should consider one.

What is a Lasting Power of Attorney?

An LPA is a legal document that allows you to appoint one or more people (known as ‘Attorneys’) to help make decisions on your behalf, should you lose mental capacity. This gives you more control over what happens to you if you have an accident or an illness and cannot make important decisions on your own.

An LPA is not just important for those with dementia or other progressive conditions. Anyone could have an accident or illness which results in a loss of mental capacity which can impact their ability to make decisions regarding their finances or their wellbeing.

Why is it important to make an LPA now?

It is important to make an LPA whilst you have the necessary mental capacity, as this allows you to sign documents to appoint your Attorney(s). A third party is also required to sign the document to confirm that you can make this decision for yourself. If something happens where you lose the ability to understand or communicate, it may be too late to make an LPA.

Whilst LPAs are most used in the event of a lack of capacity, there are other ways an LPA can help manage your affairs. For example, you may wish to appoint an Attorney if you leave the country for a long time and won’t be able to manage your financial affairs whilst away.

I already have a Will, I don’t need an LPA?

A Will is effective only after death, while an LPA oversees financial affairs or welfare whilst you are still alive.

A Will does not appoint an Attorney to help you on your behalf and an Attorney does not automatically become an executor of your estate when you die. You can appoint the same person to be both Attorney and executor, however it is important in both documents to state who should be responsible for making decisions on your behalf.

What are the different types of LPAs?

Knowing the different types of LPA helps ensure your affairs are managed as you intend.

It is advisable under most circumstances to instate both a Property and Financial Affairs LPA and a Health and Welfare LPA and not just one or the other:

A Property and Financial Affairs LPA permits an attorney to make decisions regarding your finances and property, such as managing accounts, paying bills, selling your house or other belongings. This is important if you hold a joint account, as they can be frozen if banks become aware that one party no longer has adequate capacity.
A Health and Welfare LPA is for decisions regarding your wellbeing, such as your place of residence or receiving life-sustaining treatment. Without this document, health professionals or social services will make decisions on your behalf if you are unable to do so.

What happens if I don’t have an LPA?

Many people assume that should you lose capacity, that a spouse, civil partner or a child will automatically be able to make decisions for them. Without an LPA, a loved one will have to apply to the Court of Protection for Deputyship of your affairs. This is often more costly and time consuming than creating an LPA.

Bromleys can help

Our expert team at Bromleys can help you navigate planning for your future and giving you the peace of mind that an LPA properly represents your wishes. We can provide expert advice to drafting or updating an LPA to match your unique circumstances.