Lasting Power of Attorney

What are the types of lasting power of attorney?

There are two LPAs you can complete:

A health and welfare power of attorney is when you choose one or more people to make decisions on your behalf regarding issues such as medical care, life-sustaining treatment, or whether you are moved into a care home. It can also be used to cover your day-to-day care and where you should live, as well as assessments for the provision of community care services. It’s possible to state what type of medical treatment you do or don’t want and to have a say in your future care.

A property and financial affairs lasting power of attorney, where you choose one or more people to make decisions in relation to your money and property. For example, they can pay bills and taxes and collect benefits on your behalf, and they can pay school fees, receive income or inheritance, make gifts to others, and sell your house.

You can choose to have both types of LPA at the same time. It’s also possible to restrict or specify the types of decisions an attorney can make, or you can decide they can make all decisions without any restrictions. There can be more than one person named to make decisions for different aspects of the LPA, or you can state that all attorneys must jointly make all decisions.

A health and welfare lasting power of attorney must be registered with the Office of the Public Guardian and can only come into force once the donor no longer has mental capacity. The powers contained in them are specific to the needs of the individual they relate to.

A financial lasting power of attorney can be used as soon as it’s registered, with your permission. The attorney must ensure they keep full financial accounts and that your money is kept separate from their own. People who own businesses can use an LPA as a vital tool in business emergencies.

Around 130,000 people per year suffer from strokes, and a third of these strokes affect the under-65 age group. By 2020, it is estimated that over 1 million people will live with dementia.

When a loss of mental capacity occurs, no one is permitted to deal with your assets, not even your spouse. Houses cannot be sold or insured, bills cannot be paid, and bank accounts cannot be accessed or operated.

Example

Mr. Jones was a widower and lived alone. He has 1 daughter. One day, he had a stroke and went to the hospital, where he received long-term care. It was a particularly cold winter and the pipes froze and burst at Mr Jones’s home. The daughter:

• Could not access bank accounts
• Did not have the authority to deal with the insurer
• Even if the insurer had dealt with her, would they have paid out? The property was left unoccupied!

It is vital that these documents are in place for everyone of all ages. People insure their cars, televisions, and boilers, but they do not insure their mental capacity!

Contact our Solicitors today

Our experienced lawyers can help you with all aspects of an LPA. Plus, we can guide and advise attorneys on their duties.