Challenges of decision-making with a Lasting Power of Attorney

When our health declines, even routine activities—such as handling finances or making healthcare choices—can become daunting. This is where the idea of a Lasting Power of Attorney (LPA) becomes essential in protecting your future.

An LPA is a legal document that allows you to designate someone, known as your 'attorney', to manage significant affairs for you when you are unable to manage them yourself. This reliable person can help with decision-making or assume full responsibility, always acting with your best interests in mind.

REASSURANCE FOR THE FUTURE

Although creating an LPA is distinct from drafting a Will, many individuals choose to organize both at the same time as part of thorough future planning. This provides peace of mind, knowing that a trusted person will make decisions on your behalf if you become unable to due to illness, old age, or an accident.

An LPA authorizes your attorney to oversee various aspects of your life, whether it's your finances and property or your health and welfare.

Importantly, it can include specific instructions and preferences that reflect your personal values and wishes, ensuring that what matters to you is always protected.

ACTING WHILE YOU STILL CAN

To create an LPA, you must have full legal capacity, meaning you need to fully comprehend the document's implications and responsibilities at the time it is established. If this capacity is diminished, you cannot create an LPA, nor can anyone else do it on your behalf.

A common misconception is that your next of kin—such as your spouse, partner, or children—automatically has the authority to manage your affairs if you lose that ability.

However, without an LPA, this is not true, leading to potentially costly and time-consuming legal challenges.

DIFFERENT TYPES OF LPA

In England and Wales, there are two different types of LPAs designed to address the key aspects of your life where assistance may be required.

The first type is the Health and Welfare LPA, which focuses on your personal healthcare and well-being. It covers decisions about your medical treatment, living arrangements, diet, and even life-saving interventions.

The second type, the Property and Financial Affairs LPA, provides authority over financial matters. This includes managing bank accounts, paying bills, handling investments, buying or selling property, and facilitating mortgage repayments.

With this document, you can be assured that your assets will be managed responsibly.

AVOIDING LEGAL COMPLEXITIES

If an LPA is not arranged, your loved ones could face unnecessary complications. Without clear legal authority, they cannot access your bank accounts, sell property or handle essential financial responsibilities.

Under such circumstances, they may need to turn to the Court of Protection in an effort to gain legal authority. This entails applying for the position of ‘Deputy’ to manage your affairs – a process that can be both complex and expensive, placing added stress on your loved ones.

IMPORTANCE OF PROFESSIONAL ADVICE

Seeking professional advice when setting up an LPA is invaluable. Experts can guide you through the intricacies of preparing the document, ensuring you include any specific instructions and preferences that matter to you. This not only secures you peace of mind but also simplifies the process for your chosen attorney, reducing future confusion or disagreements.

PROTECTING YOUR HEALTHCARE CHOICES

A Health and Welfare LPA provides you with the power to influence how your well-being is managed if you lose mental capacity. For instance, your attorney can advocate for your desire to remain in your own home instead of being moved to a care facility.

This type of LPA only becomes effective when you are no longer able to make decisions for yourself. It ensures that your values and beliefs are upheld – even if circumstances prevent you from expressing them directly.

ENSURING FINANCIAL STABILITY

On the other hand, a Property and Financial Affairs LPA has wider applicability. It can be used not only if you lose mental capacity but also in situations where physical challenges – such as illness or mobility issues – hinder your ability to handle financial matters.

If you often travel or live abroad, appointing an attorney to oversee your assets closer to home can also be a practical solution. This ensures that your financial responsibilities are attended to efficiently, without delay or mismanagement.

PROTECTING YOUR WISHES

An LPA is more than a legal formality; it is a means to retain control over the direction

of your life, even when unforeseen events arise. Whether it’s ensuring financial security or safeguarding personal healthcare preferences, establishing an LPA offers peace of mind for you and your loved ones.