Most people understand why they need a Will.
Ask the same people about a Lasting Power of Attorney and you’ll often get a puzzled look.
A Will protects your wishes after you’ve died. A Lasting Power of Attorney protects you while you’re still alive.
In our experience, many people don’t realise the importance of an LPA until it’s too late.
I remember speaking to a family whose father had suffered a severe stroke. He was still alive, but he could no longer manage his finances or make important decisions. His children assumed they could simply step in and help. After all, they were his closest family.
Unfortunately, it doesn’t work that way.
Without a Lasting Power of Attorney in place, they faced a lengthy and expensive application to the Court of Protection before they could legally act on his behalf.
The stress could have been avoided.
What Is A Lasting Power Of Attorney?
A Lasting Power of Attorney, often shortened to LPA, is a legal document that allows you to appoint people you trust to make decisions on your behalf if you are unable to do so yourself.
There are two types.
Property and Financial Affairs Lasting Power of Attorney
This allows your chosen attorneys to deal with matters such as:
- Bank accounts
- Paying bills
- Managing investments
- Selling property
- Handling pensions and income
Health and Welfare Lasting Power of Attorney
This covers decisions relating to:
- Medical treatment
- Care arrangements
- Daily living decisions
- Life-sustaining treatment preferences
Many people choose to have both.
Doesn’t My Spouse Automatically Have Authority?
No.
This is probably the biggest misconception surrounding LPAs.
People often assume that being married gives their husband or wife the legal authority to manage everything if something happens to them.
It doesn’t.
Your spouse cannot automatically access certain accounts, make financial decisions or deal with assets simply because they are married to you.
The same applies to adult children.
Without the appropriate legal authority, even close family members can find themselves unable to help.
What Happens If I Lose Mental Capacity?
Mental capacity can be lost in many ways.
Most people immediately think about dementia.
That’s understandable, but it isn’t the only risk.
Loss of capacity can also result from:
- A stroke
- A serious accident
- A brain injury
- Certain illnesses
- Progressive neurological conditions
Nobody plans for these situations.
Yet they happen every day.
The important thing to understand is that once someone has lost mental capacity, it is generally too late for them to create a Lasting Power of Attorney.
The opportunity has gone.
What Happens If I Don’t Have An LPA?
If no LPA exists and you lose capacity, your family may need to apply to the Court of Protection to become a Deputy.
This process can be lengthy.
It can be expensive.
It can also place significant stress on loved ones at an already difficult time.
Deputies are subject to ongoing supervision and reporting requirements that do not apply in the same way to attorneys appointed under an LPA.
Most people would prefer to decide for themselves who should act on their behalf rather than leaving the decision to a court process.
When Should I Put A Lasting Power Of Attorney In Place?
Earlier than you think.
One of the biggest mistakes people make is viewing LPAs as something only older people need.
I disagree.
I’ve met people in their thirties and forties who have experienced life-changing illnesses and accidents.
Mental capacity issues are not reserved for retirement age.
The best time to create an LPA is when you’re healthy, capable and able to make informed decisions about who you trust.
Not when a crisis is already unfolding.
Who Should I Appoint As My Attorney?
This is a personal decision.
Your attorney should be someone you trust completely.
Someone reliable.
Someone capable of making sensible decisions under pressure.
For many people, this may be a spouse, adult child, sibling or close friend.
What’s important is choosing individuals who understand your wishes and who will act in your best interests.
Can Attorneys Do Whatever They Want?
Absolutely not.
Attorneys have legal responsibilities.
They must act in your best interests and follow the principles set out within the Mental Capacity Act.
They cannot simply spend your money however they choose or make decisions based on their own preferences.
The role carries significant responsibility.
Is A Lasting Power Of Attorney Only About Money?
Not at all.
Many people focus on the financial side because it feels more tangible.
The Health and Welfare LPA is often just as important.
This document allows trusted individuals to make decisions about care, treatment and welfare if you cannot communicate your wishes yourself.
For many families, these are the most difficult decisions they will ever face.
Having clear instructions in place can provide valuable guidance when emotions are running high.
How Much Does A Lasting Power Of Attorney Cost?
The cost depends on whether you prepare the documents yourself or seek professional assistance.
While some people focus solely on the upfront cost, I encourage clients to think about the potential cost of not having one.
Compared to the time, stress and expense associated with a Court of Protection application, an LPA is often one of the most sensible investments a person can make.
A Document You Hope Is Never Needed
Most people never want their attorneys to use their Lasting Power of Attorney.
That’s perfectly normal.
Creating an LPA isn’t about expecting something bad to happen.
It’s about being prepared if it does.
We insure our homes despite hoping they never burn down. We insure our cars despite hoping we never have an accident.
A Lasting Power of Attorney follows the same principle.
If the people you care about suddenly needed to make decisions on your behalf tomorrow, would they have the legal authority to do so?
AHJ Wills & Estates helps individuals and families across Sheffield, Rotherham and the surrounding areas put Lasting Powers of Attorney in place, providing clarity and peace of mind for the future.
To discuss your options, contact our experienced team today.
AHJ Wills & Estates
Great Central, 2 Chatham Street, Sheffield, S3 8FG
0114 553 5416
https://ahjwillsandestates.com/
AHJ Wills & Estates is a specialist Will writing and estate planning firm serving clients across Sheffield and Rotherham.
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