Does your company have compliant health and safety measures in place?
Should a time come when you are unable to make your own decisions, creating a Lasting Power of Attorney (LPA) enables individuals you choose, whether they are family, friends or a solicitor, to make choices on your behalf and become an attorney.
LPAs are legally binding and you need to choose individuals who have your best interests at heart and will follow your wishes to the letter, as not putting one in place means you may lose control of what happens to your estate if you are unable to make decisions
LPAs are essential documents that allow you to plan effectively for the future, have control over your own estate and entrust people to support your decisions and look after your affairs.
You need to know the different types of LPAs available, the risks of not having one and why choosing the right people is so important.
What are the different types of LPAs?
There are two types of LPAs that you can put in place when organising your estate. One covers health and welfare and the other focuses on property and finance.
A health and welfare LPA is in place for when you cannot make decisions on your own health and living conditions. Under this LPA, any appointed attorneys have the power to make decisions on your behalf on aspects such as your daily routine and quality of life.
They can also make decisions over residential care and medical care. The LPA allows your attorneys to choose the best course of treatment if you cannot do that yourself. Should a situation become critical, they also have the power when it comes to life-sustaining treatment.
The second LPA is centred on your property and finances, which allows your chosen attorneys to manage your finances if you are unable to do so.
This means they can look after your bank or building society accounts, pay any outstanding bills and collect your pensions or benefits.
They also have the power to sell your home if necessary to aid any financial challenges or concerns.
The other LPA that you can create focuses on your property and finances. This form of LPA gives your attorneys the ability to look after and manage your bank or building.
You are allowed to create both and appoint attorneys who, by law, will be required to follow the LPA, which is why choosing the right people for this role is so important.
What impact does not having an LPA have?
The impact of not having an LPA can be damaging because you lose any control of your estate if you cannot make decisions and the LPA isn’t in place.
You also run the risk of serious financial challenges, like assets being frozen and delayed access to funds, because banks are reluctant to release funds without an LPA, as they follow their own strict guidelines and procedures.
There is also the added strain on your family because, without an LPA, they will have to make decisions that may not reflect your wishes and each will have their own opinion on how things should be done.
This added pressure on top of what is already an extremely emotional situation could divide your family and cause a rift that may be hard to repair.
The importance of an LPA
LPAs ensure your wishes are met and your family understands what will happen if you are in a position where you cannot make decisions for yourself.
They provide peace of mind to you and take any pressure off your family, while offering valuable protection to your finances, property, as well as your future health and welfare.
They also significantly reduce the risk of legal challenges because the LPA is a legally binding document that, by law, must be honoured and respected.
It’s essential you make the right decisions
You need to make the right decisions when creating an LPA because you must appoint the right people as attorneys who you know will carry out your wishes as intended and protect your interests.
If you are unsure about how LPA works or want to put one in place, our expert team can help. We can discuss your plans, outline how an LPA works and give you the tools to put one in place and choose the right attorneys.
LPAs are valuable in so many ways and our team can support you every step of the way, answering your questions and we can also act as an attorney if you would like us to.
If you need support putting an LPA in place, speak with our team today.
Related posts
