Lasting Power of Attorney
Navigating the world of legal documents can feel like trying to decipher an alien language. But when it comes to safeguarding your future, understanding lasting power of attorney (LPA) is crucial. Our wills and probate lawyers are experts and can provide advice that can make all the difference to your and your family's future.
This legal document allows you to appoint someone you trust to make decisions on your behalf should you lose mental capacity in the future. There are two kinds of LPA - one for financial matters and property and another for health and care decisions.
Setting up an LPA isn't as daunting as it sounds, but it's essential to get it right. From understanding their basics to navigating potential risks and getting professional help, we will cover it all below. But first:
Are you too young for an LPA?
However, if the day comes when your LPA is needed, your loved ones will be so grateful that you had the forethought to put a lasting power of attorney LPA in place, which will enable them to make decisions on your behalf and ensure your financial and health issues are looked after when you are not able to do so for yourself.
Key Takeaways
-
Lasting Power of Attorney (LPA) is an important legal document that authorises someone to manage affairs if mental capacity is lost.
-
There are two types of LPA: Health and Welfare and Property and Financial affairs.
-
Attorneys can only act when mental capacity is lost or as soon as the LPA is registered.
-
It is crucial to arrange an LPA before losing mental capacity to ensure that trusted attorneys can carry out your wishes.
Understanding the Basics
So, you're thinking about setting up a lasting power of attorney with RG Law? Let's get down to the basics so you can understand exactly what this important legal step entails.
A lasting power of attorney is a crucial document that authorises someone else to make decisions on your behalf if you lose mental capacity due to illness or injury. It isn't just for older people; accidents and illnesses can strike at any age, leaving you unable to manage your affairs.
There are two types of LPAs: one called a health and welfare LPA, which covers decisions about medical care and living arrangements, and one for property and financial affairs. The latter gives authority over finances, like paying bills or selling property. Remember, setting up an LPA while you still have mental capacity is essential.
Registering a lasting power of attorney involves applying through the Office of the Public Guardian (OPG), with a fee involved unless certain exemptions apply. But don't worry – we're here to guide you through every step of this process.
Now that we've covered the basics, let's delve deeper into understanding the different types of LPAs and their respective roles in your life.
What types of Last Power of Attorney are there?
Property and Financial affairs
This LPA allows your Attorney(s) to deal with:
-
Paying your bills
-
Collecting income and benefits
-
Dealing with your tax affairs
-
Selling or buying your home
-
May have authority straight away or only for certain assets or only if you have lost mental capacity
Health and welfare
This LPA allows your Attorney(s) to deal with:
-
Where you live
-
Your medical and day-to-day care
-
Your diet, dress and visitation
-
Even whether to give or refuse life-sustaining treatment if you chose
-
Authority will only be effective if you have lost mental capacity
Removal and Cancellation
It's crucial for you to know that should things go awry, there are options in place to revoke or change the person who has been given authority over your affairs. You hold the right to remove your attorney under certain circumstances, but typically, it requires you to have mental capacity at the time. This is why it is advised that you seek the help of a professional such as a lawyer or a solicitor.
Here's what you need to understand about removing or cancelling an LPA:
-
If you have mental capacity and are unsatisfied with your appointed attorney, you can end their power of attorney status by contacting the Office of Public Guardian.
-
In case of misconduct by your attorney, such as misuse of finance or failing to act in your best interest, they can be removed.
-
If two attorneys were appointed jointly and disagreements arise between them causing disruption in decision-making, one can be removed.
-
A divorce or dissolution of a civil partnership may also lead to automatic revocation unless specified otherwise in the LPA document.
-
Lastly, if no replacement attorney was named and yours becomes bankrupt or dies, then the LPA ends automatically.
Understanding these possibilities provides security while making a big decision, like appointing an attorney, your probate lawyer or a solicitor can help you with this decision.
Frequently Asked Lasting Power of Attorney Questions
What happens if there is a disagreement between multiple attorneys appointed in an LPA?
If disagreements arise between multiple attorneys in an LPA, they should try to resolve it amicably. If they can't, they might need legal advice. In extreme cases, the Court of Protection may intervene.
Can an attorney withdraw from their role once an LPA is activated?
Absolutely, as an attorney, you have the right to step down from your role after an LPA is activated. However, you must inform the donor and Office of the Public Guardian about your decision formally.
Are there any circumstances in which an LPA might not be recognised by financial institutions or healthcare providers?
Yes, there can be situations where an LPA might not be recognised. These typically occur if the Lasting Power of Attorney isn't properly registered with the Office of the Public Guardian or if it hasn't been correctly completed and signed.
How can an individual ensure their wishes are respected if their mental capacity fluctuates over time?
Imagine playing a game of mental tug-of-war, where your capacity ebbs and flows. To ensure your wishes are respected, consider creating a Lasting Power of Attorney that triggers during periods of diminished capacity.
Can a Lasting Power of Attorney be set up for a business and how does it differ from a personal LPA?
Yes, you can set up a Business LPA. It's similar to a personal one but specifically deals with your professional interests. Unlike a personal LPA, it covers business operations and decisions if you lose capacity.
If you want to know more, click here to get in touch. Or you may require one of our Wills and Probate services. See below.
"As the old saying goes, 'Failing to plan is planning to fail.' And there's no room for error when protecting your assets and ensuring they're distributed as per your wishes after you're gone. That's where having a will comes into play – and not just any will but one drafted by a specialist wills lawyer.
We delve into why having a will is crucial, what could go wrong if you don't have one, and the role of a qualified lawyer or solicitor in this process. We'll also explore the risks associated with DIY wills and the importance of secure storage for your valuable documents"
Probate is the process of dealing with the estate of someone who has died. A Grant of Representation is required to give you the legal right to deal with the deceased’s assets.
An asset can be anything from a gold watch to a property if there is a property to be sold to enable the distribution of liquid assets among beneficiaries. A grant of probate is required, granting you the legal authority to proceed with the property sale.
We often imagine that managing wealth is a leisurely stroll in the park. It's not all about sipping champagne on yachts; there's a whole world of trust law, succession planning and asset protection to navigate. That's where professional trust lawyers and solicitors come into play.
We can help you with various trusts, from setting up a trust to help reduce the amount of inheritance tax your children or grandchildren may be liable to pay should you die.
"When you purchase a property with another person, you can hold it in one of two ways: as tenants in common or as joint tenants. While both options have their own advantages, joint tenancy can be particularly beneficial when it comes to estate planning.
However, if you're considering severing a joint tenancy due to a relationship breakdown or for tax purposes, there are important legal considerations to keep in mind before you serve a notice of severance. This is where RG Law comes in"
Inheritance tax is an important topic for anyone who may be receiving an inheritance in the future.
Whether the inheritance is coming from a spouse or civil partner, family member, or life insurance policy, it is essential to understand how much you may have to pay and what exemptions are available regarding inheritance tax.
In all cases, a lawyer or solicitor specialising in this area of law is the key to getting the best advice.
There may come a time in our lives when we lack the capacity to make decisions for ourselves, maybe due to an unexpected illness, accident, disability or dementia. This is where your lasting power of attorney (LPA) provides you peace of mind; like your car insurance, it's in the drawer, and you hope your loved ones will never have to use it.
However, if you are seeking help, support and advice on how you are going to help a friend or family member by becoming a deputy for them because they do not have an LPA in place, we can advise on a possible Court of Protection Deputyship.