When organising your estate, there will be plenty of things to consider, from writing a Will to collating all your assets, but you should also be thinking about putting a Lasting Power of Attorney (LPA) in place.
There may come a time when your circumstances change, such as an accident or sudden health scare or if you are diagnosed with an illness like Dementia or Parkinson’s disease.
In the same way that people of any age should prepare a Will, an LPA should be made while you are in charge of your own mental faculties, even if you do not believe it will be implemented for many years, if at all.
This may leave you in a difficult position where you cannot make decisions for yourself and this is where an LPA helps.
LPAs are legally binding documents that allow you to appoint family members, friends or a solicitor to make decisions on your behalf should you be unable to.
They help you plan for the future, but if you don’t have one in place, you lose control and decisions may be made that do not reflect what you want.
What can happen if an LPA is not put in place?
Having an LPA in place is essential if you still want to control your own estate and affairs.
Not having that means you lose that element of control, your wishes may not be met, feuds within your family can arise, financial challenges can appear and the risk of legal disputes increases.
Assets are likely to be frozen and banks are very reluctant to release funds without an LPA because of their own strict compliance procedures, meaning there will be delays in accessing funds.
The pressure intensifies on your family in what is an already challenging and emotional environment.
Not having the LPA puts them in a position where they need to decide what is best and each person will have their own opinions, which can cause unwanted friction within your family, leading to potentially broken relationships and disputes.
Because it is legally binding, an LPA eases the risks of legal challenges and disputes arising, so all that pressure can be relieved on your family if this is in place.
The LPAs available to you
There are two LPAs that you can put in place should you be unable to make decisions, one covers your health and welfare, while the other focuses on your finances and property.
The health and welfare LPA allows your appointed attorneys the power to make decisions about various aspects of your health and living conditions should you be unable to.
This will include changes to your daily routine, your overall quality of life and they can decide if residential care is necessary to help improve your life.
They can also discuss your medical care. This means deciding the best course of care and treatments and in the most severe situations, discussing life-sustaining options.
As noted above, you can also put an LPA in place for your finances and property.
This means any appointed attorneys can look after and manage your bank or building society accounts. They have the power to pay your bills, collect pensions and sell your home if required.
In addition to this, your LPAs should also include a trigger clause that determines when the attorneys can begin to take charge of your affairs and welfare.
The main trigger will be a loss of mental capacity verified by a healthcare professional. Should this happen, your attorneys can step in, follow the steps outlined in your LPA and make the right decisions for you.
How we can help you put an LPA in place
Creating an LPA is important because it ensures your assets are protected and your wishes are followed and carried out by people you trust and value.
The Palmers team is here to help you. We are here to advise and support you on all matters regarding your estate. We can discuss LPAs with you, help you put one in place and act as an attorney on your behalf. Get in touch with our expert team if you would like to discuss LPAs in further detail.
