Lasting Powers of Attorney
Losing capacity can be a daunting prospect, but acting early can protect your best interests. Without proper legal documentation, managing someone else's affairs can become a stressful and costly ordeal. Find out how a Lasting Powers of Attorney can help.
What is a power of attorney?
A Lasting Power of Attorney (LPA) is a legal document allowing people you trust to help you make decisions, or to make decisions on your behalf.
Many people don’t consider a power of attorney until they are elderly, but it’s a good idea to consider this while you are still fit and healthy. Making a power of attorney means that you can plan how your health, well-being and financial affairs will be looked after once you can no longer make decisions for yourself. It means that you can choose in advance what decisions you want to be made on your behalf and who you want to make those decisions for you.
There are two kinds of LPA, both of which constitute an agreement between you (the donor), and someone you trust to handle your affairs (the attorney).
Property and Financial Affairs
This gives your ‘attorney’ permission to handle your financial affairs and property. It could simply mean paying bills, or it could entail selling your property or handling your investments. This type of power of attorney can be utilised whilst you still have the capacity to handle your own financial affairs and property, if you wish.
Health and Welfare
This can only be used once you are no longer able to make your own decisions. Your ‘attorney’ can make decisions on your behalf, including about your daily routine, your living arrangements, and about your medical care.
An LPA is as crucial as a Will when it comes to protecting your finances and well-being. It ensures your affairs are managed in your best interests, even if you're unable to make decisions yourself.
But…what happens if you don’t have a power of attorney?
There are significant dangers of not having an LPA in place. If you lose capacity before having an LPA in place, your family (including a spouse/civil partner) will not be able to get access to, or deal with, your assets. Here are some of the key points to consider:
Loss of financial control: Without an LPA, if you become incapacitated, your loved ones cannot legally access your finances to pay for your care or other necessary expenses. This situation can create significant financial strain.
Financial costs: The cost of registering an LPA is £82 in England and Wales, which is significantly lower than the costs associated with applying for a deputyship through the Court of Protection, which also involves yearly fees (current minimum £320 for 1st year).
Emotional stress: The process of applying for a deputyship via the Court of Protection is not only long and intrusive, but also adds emotional stress to your family during an already difficult time.
Delay in decision-making: The absence of an LPA can lead to significant delays in decision-making, impacting the well-being and financial stability of the individual concerned.
The costs of doing nothing
Click on the panels below to see the indicative costs of setting up LPAs for your loved ones.*
What to do next?
At Four Pillars, we act as partners on your journey through life, to do this, we will take the time to understand you, your family and your circumstances, so we can create a plan that’s right for you.
Your attorneys are likely to be someone close to you, so make arrangements to ensure this process is as simple as possible if the time comes. It’s important that you introduce your attorneys, and any loved ones, to us in advance so that everyone is aware of the plan.
*Prices are estimated costs based on online research and are correct as of 31st July 2024 - Four Pillars has no control over pricing of Lasting Powers of Attorney.