Why should everyone get a Lasting Power of Attorney? (LPA)

It’s important to understand the significance of having a lasting power of attorney (LPA) in place. While many people focus on creating a will, having an LPA is equally important. A will addresses what happens after you pass away, whereas an LPA is a legal document for making decisions on your behalf if you lose capacity through things like having a stroke, dementia, or being in an accident. You never know when you might need an LPA, but they are worth their weight in gold when you do need them!

Which is more important a Will or Power of Attorney?

Both a Will and power of attorney (LPA) are crucial documents and form part of your estate plan, but serve very different purposes. A will outlines your wishes after your death, while a power of attorney gives someone you trust, like family members for example, the authority to make decisions and act in your best interests if you’re unable to do so, making them equally important.

Do I need a Lasting Power of Attorney if I’m not married?

It doesn’t matter what your marital status is; having a power of attorney (LPA) is essential for everyone. While married couples may assume that their spouse automatically has the authority to make decisions on their behalf, this isn’t always the case. In situations where a person becomes incapacitated due to illness, injury, or other unforeseen circumstances, having an LPA ensures that someone trusted can step in to make important decisions regarding your finances, health care, and personal welfare.

For single individuals, especially those without children, the need for an LPA may be even more critical. Without a spouse or children to automatically assume decision-making responsibilities, there may be no clear authority to act on your behalf in case of incapacity. By appointing an attorney through an LPA, you can designate a trusted friend, family member, or professional to handle your affairs according to your wishes.

Moreover, being unmarried doesn’t exempt anyone from the risk of incapacitation. Accidents and sudden illnesses such as dementia can affect individuals of any marital status. Therefore, it’s prudent for everyone, regardless of their relationship status, to consider setting up an LPA to ensure that their interests are protected and their affairs are managed per their wishes.

Who should I name as an attorney for my LPA?

Naming an attorney for your Lasting Power of Attorney (LPA) is a crucial decision that requires careful consideration. An attorney is someone you trust to make important decisions on your behalf if you’re unable to do so due to illness or incapacity. Here are some key factors to consider when choosing an attorney for your LPA:

1. Trustworthiness: Your attorney should be someone you trust implicitly, as they will be making decisions about your finances, health, or welfare. Choose someone who has your best interests at heart and will follow your wishes.
2. Reliability: It’s essential to select someone reliable and responsible, as they will be handling important matters on your behalf. Look for someone who has a track record of managing their own affairs effectively and can be counted on to fulfil their duties as your attorney.
3. Availability: Your attorney should be readily available and accessible when needed. Consider whether they have the time and capacity to take on the role of attorney, especially in the event of an emergency.
4. Understanding of Your Wishes: Your attorney should have a clear understanding of your values, preferences, and wishes, particularly regarding your finances, health care, and personal welfare. Choose someone who will respect your choices and act following your instructions.
5. Legal Capacity: Ensure that your chosen attorney has the legal capacity to act on your behalf. They must be over the age of 18 and mentally capable of making decisions on your behalf.
6. Communication Skills: Effective communication is key in the attorney-client relationship. Choose someone who can communicate clearly and effectively with you, as well as with other professionals involved in your care.
7. Backup Attorneys: Consider appointing more than one attorney and specifying whether they should act jointly or severally. Having backup attorneys ensures continuity of decision-making if your primary attorney is unable to act.

Can I change my attorney should circumstances change in the future?

Yes, it is possible to change your attorney should your or their circumstances change. It’s always important to regularly review your Estate Planning often for these types of things. Life changes quickly sometimes, so it’s important to review your documents like Wills and LPAs as they could become quickly outdated and need refreshing.

What are the different types of Lasting Power of Attorney?

There are two different types of LPA that we offer: Health and Welfare LPA and Property and Financial Affairs LPA. 

Property and Finance LPA

A property and finance LPA allows your attorney to make decisions about paying bills, dealing with banks and investments, arranging and collecting benefits and selling property on behalf of the donor.​

Health and Welfare LPA

A health and welfare LPA allows your attorney to make decisions about your healthcare, and consent to medical treatment and accommodation. Your Attorneys can only use it if you cannot make your own decisions.

What could happen if you don’t have a Lasting Power of Attorney?

Meet Sarah and Tom,  a happily married couple enjoying together life together. One day, tragedy strikes when Tom suffers a severe stroke, leaving him incapacitated and unable to make decisions for himself.

Without the correct lasting power of attorney (LPA) in place, Sarah finds herself in a challenging situation. She needs to access Tom’s bank accounts to manage household expenses, pay bills, and ensure that their mortgage is covered. However, the bank refuses to grant her access without legal authority, leaving Sarah feeling helpless and frustrated.

Meanwhile, Tom’s medical condition requires immediate decisions about his care and treatment. With no LPA appointing Sarah or anyone else to make healthcare decisions on Tom’s behalf, doctors are left in a quandary. They’re unable to proceed with necessary treatments or procedures without consent from a legal representative.

As days turn into weeks, Sarah is forced to navigate a complex legal process to obtain guardianship over Tom’s affairs. She’s overwhelmed with paperwork, and legal and solicitor fees, all while trying to support Tom through his recovery.

In the end, the lack of an LPA not only causes unnecessary stress and delays but also puts Tom’s well-being and financial security at risk. If they had the relevant LPAs in place, Sarah would have been able to swiftly handle Tom’s affairs, avoiding unnecessary hardship, involving a Court of Protection, and ensuring Tom’s needs were promptly addressed.

That is the importance of LPAs!

When should you make a Lasting Power of Attorney?

It’s advisable to set up an LPA while you have the mental capacity to make your own decisions. Procrastinating this vital task may create complications later on, so it’s best to plan for the future by making an LPA as soon as possible.

What does Martin Lewis say about LPAs?

Martin Lewis is a big advocate in LPAs and has created dedicated shows around this topic on his ITV series called ‘The Martin Lewis Money Show Live’

We even use this episode to help explain and emphasize to our customers the importance of setting up an LPA. Take a look at this episode to hear Martin’s thoughts.

The Martin Lewis Money Show Live – Tue 21st Nov – Episode on ITVX

How do I set up a Lasting Power of Attorney? Can I do it myself?

While it is possible to set up an LPA yourself, it can be tricky to make sure that you have filled out everything correctly, and could turn out to be just as expensive in the long run if it’s not done correctly. 

While it is possible to set up an LPA yourself, many people prefer to seek assistance from professionals like us to ensure that the process is completed correctly and that their interests are protected. 

If you choose to set up an LPA yourself, you will need to follow specific steps;

1. Decide who you want to appoint as your attorney(s).
2. Obtain the necessary LPA forms from the Office of the Public Guardian (OPG) website.
3. Inform the individuals you have chosen as your attorneys that you intend to appoint them and discuss your wishes with them, as they will have the power to make decisions on your behalf.
4. Your LPA forms will need to be signed by you, your chosen attorney(s), and witnesses.
5. Once your LPA forms are completed and signed, you will need to register them with the Office of the Public Guardian (OPG). Registration ensures that your LPA is legally valid and can be used if needed. There is a fee for registering an LPA, but you may be eligible for a reduction or exemption in certain circumstances.

At 1st Line Future Planning, we can take care of all of this for you! we offer a comprehensive LPA service to help you set up your LPA quickly and efficiently. Our experienced team can guide you through the LPA process, answer any questions you may have, and ensure that your LPA is valid and meets all legal requirements when filing with the Office of the Public Guardian.

How much does it cost to set up a LPA?

There are costs associated with setting up an LPA, including application fees and potential legal fees. However, the peace of mind and security provided by having a lasting power of attorney in place justify the associated expenses. If you are looking to set up an LPA and need some advice or want to talk to one of our experts to see how much we would charge.

In Conclusion

Understanding the importance of having a Lasting Power of Attorney (LPA) in place is paramount. While many individuals prioritize creating a will, having an LPA is equally crucial. A will primarily address what happens after one’s passing, whereas an LPA is vital for making decisions on behalf of someone who loses mental capacity due to unforeseen circumstances, such as a stroke or accident. The unpredictability of life underscores the significance of having an LPA, as it ensures that trusted individuals can step in to make essential decisions when needed most.

• Wills vs. LPAs: A Will addresses what happens to your things after your death, LPAs empower trusted individuals to make decisions in case of incapacity, making both equally crucial in Estate Planning.
• Need for LPAs: LPAs ensure trusted individuals can step in to make essential decisions if incapacity occurs due to unforeseen circumstances like strokes or accidents.
• Universal Importance: Regardless of age or marital status, setting up an LPA is essential to entrust decisions to someone trusted during incapacity.

Choosing an Attorney for Your LPA

• Key Considerations: Trustworthiness, reliability, understanding of wishes, legal capacity, and communication skills are crucial factors.
• Backup Attorneys: Consider appointing more than one attorney to ensure decision continuity.

Acting in Time: Setting Up Your LPA

• Timely Action: Prioritise setting up an LPA while still mentally capable, avoiding complications later.
• Professional Assistance: Seek expert guidance to ensure accuracy and efficiency in the setup process.

Securing Your Future with an LPA

• Peace of Mind: Having an LPA in place provides peace of mind, knowing trusted individuals can act on your behalf if needed.

If you’re considering setting up a lasting power of attorney (LPA) and would like to explore your options or discuss our services further, don’t hesitate to reach out to our team. We’re here to help you safeguard your future with confidence and peace of mind and also offer 0% finance on our services. We also are rated 5 stars on Reviews.io by our customers, so you know you are in safe hands with us.