WHO DO YOU TRUST?
Before you zone out, this isn’t a boring article about trusts, but rather the importance of choosing who should deal with your financial affairs or make decisions about your welfare if you become unable to do so. And even if you are under 50 – PLEASE READ ON – LPAs are not just for the elderly!
Often, in discussions about Wills, clients tell us that they won’t care what happens when they die as they won’t be here to worry about it.
Lasting Powers of Attorney (LPAs) are lifetime documents that enable you to choose one or more people (Attorneys) who know you well and who you can trust to do things in the same way as you would do yourself. You will still be alive when they are managing your affairs and naturally any decisions they make will directly affect you. Some would say this is an even more important legal document than a Will.
There are two types of LPA and you may choose to create either or both of them:
- Health and Welfare
- Property and Financial Affairs
Both types of LPA must be registered with the Office of the Public Guardian (OPG) before they can be used so there is legal protection for you – you are not simply allowing someone to take over.
A health and welfare LPA can only be used by your appointed Attorneys when it has been registered and if you have lost capacity to make your own decisions.
A property and financial affairs LPA may be used by your Attorneys (if you choose to allow that) with your express permission after it has been registered, for example if you are physically unwell.
In both cases, your Attorneys are bound by the Mental Capacity Act 2005 Code of Practice. They must always act in your best interests and must help you to make as many of your own decisions as you can.
What happens if you don’t make an LPA and become unable to manage your affairs?
A relative, a professional person or the local authority would need to make an application to the Court of Protection to become your Deputy. You will have no control over who makes the application and the process can be very lengthy (six months or more) and is far more costly than putting LPAs in place. The Court are often reluctant to appoint Deputies for Health and Welfare, so any important decisions about your welfare may need to be decided by the court. The emotional anxiety for relatives during the application process can be very stressful.
Gill Tobin at Dovaston Law has specialised in preparing and registering LPAs for many years. She knows how the process works, what can and can’t be included and how your Attorneys can be appointed.
Why not get in touch, take control of your future and make things trouble-free for your family.