Metis AM
While nobody likes to think about the possibility that there will be a time when they cannot manage their own affairs, it is important to plan ahead just in case. If there is a risk that it could happen to you one day, you may benefit from putting a Lasting Power of Attorney (LPA) in place.
This is a legal document that lets you appoint someone, or more than one person, to look after your finances and personal wellbeing when you are no longer able to. However, you can only put one in place while you have the mental capacity to do so, so it may be better to do it sooner rather than later.
If you think you could benefit from this, here is what you need to know about LPAs and four reasons why you should put one in place right now.
There are several types of LPA and rules that determine who can be an attorney
One of the most important things to bear in mind is that only you can set up an LPA to cover your future needs. As we mentioned earlier, this has to be done while you have the mental capacity to do so.
Anyone you choose to act as your attorney must be aged 18 or over and must also have the mental capacity to make decisions. If you decide to have more than one, you can choose whether your attorneys must act together or can act separately.
Furthermore, there are two main types of LPAs to consider, and they cover different areas of your welfare. These are:
Health and Welfare LPA
This type of LPA would cover, along with other duties, your daily routine, medical care, and whether you may need to move into a care home.
Property and Financial Affairs LPA
This attorney can manage your finances on your behalf, such as paying important bills or collecting benefits.
Since both roles have their uses, you may want to consider whether you might need the help of only one or both.
4 reasons why you should put an LPA in place right now
1. It can help decisions to be made more quickly
One of the main benefits of having an LPA is that your loved ones can deal with your affairs right away if anything ever happens to you.
If you ever become incapacitated without having an LPA in place, your loved ones will have to apply to the Court of Protection to appoint a deputy. This can be a time-consuming affair, potentially taking up to three months, and may leave them vulnerable to financial issues while the application is being processed.
Furthermore, appointing a deputy in this way is often much more expensive than just setting up an LPA yourself.
2. It can give you a sense of control
Another important reason to appoint an LPA is that since you choose who acts on your behalf, you can retain a sense of control over what may happen. Since you can pick a person that you trust, you can rest easy in the knowledge that they will manage your affairs in the most effective way.
You have a high degree of control over what your attorney, or attorneys, are allowed to do on your behalf. For example, you can restrict the decisions that they are allowed to make, which can give you greater protection and peace of mind.
Of course, one key thing to bear in mind is that an LPA will only trigger when you are incapacitated. At this point, you obviously won’t be able to make any changes to it, so it’s important to think carefully about the long-term implications of any restrictions.
Furthermore, as well as picking someone that you trust for your attorney, you may also want to consider the expertise that the person you appoint may need. For example, if you run your own business then you may want to appoint a colleague or business partner to look after your financial interests.
3. It can cover all eventualities
Another reason to put an LPA in place is that they can be flexible. You can use them for temporary issues, such as a hospitalisation after an accident, or for long-term conditions such as dementia.
Furthermore, a Health and Welfare LPA is typically triggered once you are unable to make decisions yourself. However, a Property and Finance LPA can be come into play whenever you choose.
It’s also worth noting that if you set up an LPA temporarily, you can apply to alter or remove it once you can prove that you have the mental capacity.
4. It can give you greater peace of mind
The final reason to put an LPA in place is that you can gain greater peace of mind to know that your affairs will be looked after by a trusted attorney if you are no longer able to.
While you never know what the future may bring, you can at least prepare for it. Registering an LPA can help to give you confidence that, no matter what issues you may run into, you have a system in place to ensure that your wellbeing is looked after.
If you want to know more about how you could benefit from having in place, you may want to seek professional advice. Working with a financial planner can help you to make informed decisions when registering your LPA to ensure that you have nothing to worry about.
Get in touch
If you want to know more about how a Lasting Power of Attorney could benefit you, get in touch. Please email enquiries@metiswealth.co.uk or call 0345 450 5670.
