What is a Lasting Power of Attorney and do I need one?

Lasting Powers of Attorney (LPA) are crucial legal documents that allow you to appoint someone you trust to make decisions on your behalf if you become unable to do so yourself. They ensure that your financial, health, and welfare decisions are managed according to your wishes. Here are the key reasons why LPAs are important:

1. You’re in Charge: You can choose who will manage your affairs, giving you control over important decisions even if you lose capacity.
2. Avoiding Court Interventions: Without an LPA, your family might need to go through a lengthy and costly court process to appoint a Deputy to act on your behalf.
3. Protecting Your Interests: An LPA ensures that the person making decisions for you will act in your best interests.
4. Peace of Mind: Knowing that your affairs will be handled according to your wishes provides peace of mind for you and your loved ones.
5. Flexibility: You can specify different people for different types of decisions (e.g., one person for health decisions and another for financial matters).

What are the different types of Lasting Power of Attorney?

A Health and Welfare Lasting Power of Attorney (LPA) can be invaluable in situations where you are unable to make decisions about your own health and personal care. Imagine you suffer a severe stroke, leaving you incapacitated and unable to communicate or make decisions about your medical treatment and daily care. If you had previously set up a Health and Welfare LPA, the person you appointed (your Attorney) could step in to make those decisions on your behalf.

In this situation, your Attorney could:

1. Make Medical Decisions:
   • Decide on the best medical treatments or interventions, in consultation with your doctors.
   • Consent to or refuse specific types of medical care, like surgeries or life-sustaining treatments, based on your previously expressed wishes.
2. Choose Care Arrangements:
   • Decide whether you should be cared for at home, in a care home, or in a hospice, depending on your condition and preferences.
   • Arrange for appropriate care services, such as nursing care or physical therapy, to ensure you receive the best possible support.
3. Manage Day-to-Day Care:
   • Make decisions about your daily routine, including your diet, clothing, and personal hygiene.
   • Ensure your personal comfort and dignity are maintained, respecting your preferences and quality of life.

By having a Health and Welfare LPA in place, your appointed Attorney can make critical decisions in alignment with your wishes, ensuring that your health and personal well-being are managed effectively during a time when you cannot make those decisions yourself. This provides reassurance that your preferences and best interests are prioritised in your care.

A Property and Financial Lasting Power of Attorney can help to ensure your assets, such as a house, savings accounts, investments, and maybe even a business are handled wisely and in your best interest should you become unable to manage these yourself due to illness or incapacity. For example, suppose you own a small business and have significant investments. You set up an LPA and appoint your trusted friend, Sarah, to handle your financial affairs. If you suffer a stroke and can’t manage your finances, Sarah can:

1. Pay Bills and Manage Accounts:
   • Ensure all your bills, including mortgage, utilities, and insurance, are paid on time.
   • Handle your bank accounts to maintain financial stability.
2. Oversee Investments:
   • Make decisions about buying or selling stocks to protect and grow your investments.
   • Work with financial advisors to ensure your investment portfolio aligns with your long-term goals.
3. Run Your Business:
   • Manage daily operations, pay employees, and make strategic business decisions.
   • Ensure the business remains profitable and continues to provide income.
4. Sell Assets if Necessary:
   • If needed, sell certain assets, like a secondary property, to cover medical expenses or other financial needs.
   • Make sure any sales are done in a way that maximizes value and benefits your overall financial situation.

By having Sarah as your Attorney, you protect your financial interests and ensure that your assets and business are managed according to your wishes, even when you can’t make those decisions yourself. This gives you peace of mind and ensures that your financial health is maintained.

Our specialist Wills and Probate Lawyers would be happy to discuss any questions you may have on protecting your health and financial assets.  In our next article we explore the benefits of having a lawyer prepare your LPA. 

Call 01757 616 877 or email [email protected] to arrange an initial free consultation.