5 reasons why you should make Lasting Powers of Attorney
Written by Claire Thompson | Wills, Trusts, Tax and Probate |24th November 2022
There are two types of Lasting Powers of Attorney (LPAs). One allows your attorney(s) to make decisions about your property & financial affairs and the other allows your attorney(s) to make decisions about your health and welfare.
Here are five reasons why you should consider creating Lasting Powers of Attorney:
1. You’re in charge
LPAs are flexible documents and you can create them in a way which suits you. It is your choice if you have multiple attorneys and, if so, how you wish for them to make decisions (together, separately or a combination). You can, if you chose, restrict the decisions that they can make and give them guidance in the documents.
The property and financial LPAs allow you to decide if you would prefer for your attorney(s) to be able to act while you have capacity (with your consent) or only in the event that you lack the necessary capacity to make your own decisions. This means that if you wish, your attorneys can act on your behalf in respect of your finances if, for example, you leave the country or experience physical difficulties that make it difficult for you to manage your own financial affairs.
2. A Lasting Power of Attorney creates peace of mind
When you have created LPAs you and your loved ones know that, if you cannot manage your own financial affairs or make decisions about your care, there is there someone you trust who can act on your behalf and has a duty to act in your best interests.
3. It means that someone can act immediately
If you have correctly completed and registered LPAs your attorney(s) will be able to make decisions on your behalf immediately should the need arise. If you do not have anything in place then, in the event that you lose capacity, your loved ones would instead need to apply to the Court of Protection for a Deputyship Order. This can take months to process and may mean that the person appointed to act on your behalf is not the person that you would have chosen yourself. It can also be more expensive to apply for Deputyship Orders than create LPAs.
4. There are safeguards to protect you
The LPAs contain safeguards. When the documents are created you are required to have a certificate provider who is a person who signs the documents to confirm that they are happy that you understand the documents and that no one has forced or pressured you into created the LPAs.
If you wish, you can add your own safeguards to the LPAs such as requirements that your attorneys must create accounts to be reviewed by a third party (such as an accountant) or that an independent third party is notified when the application to register the LPAs is made.
The Office of the Public Guardian maintains a register of LPAs and if evidence is given to them that an attorney is not acting in your best interests then they can decide what action to take. If an attorney does not act in your best interest then the LPAs can be cancelled and they can be ordered to pay compensation to you for any losses.
5. It’s time to make a new LPA!
If you already have your LPAs in place but haven’t reviewed them for some time then perhaps it is time to do so. Enduring Powers of Attorney were replaced by Lasting Powers of Attorney in October 2007 which means that the oldest LPAs will soon be 15 years old.
If you made your Lasting Powers of Attorney years ago or if you still have an Enduring Power of Attorney, you should consider if the people you appointed as your attorneys are still those that you would want to manage your financial affairs and/or make decisions about your health.
Speak with our private client team
Here at Nash & Co Solicitors, we would be delighted to help with creating LPAs. Our Private Client team of experienced and friendly lawyers are also happy to answer any questions that you might have. Give the team a call on 01752 827076 or you can also ask us to give you a call by filling in the Call Back Request Form on our Contact page.
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