Key benefits of setting up Lasting Power of Attorney
One of our clients recently shared a fascinating story that underscores the advantages of having Lasting Powers of Attorney in effect. As we're all aware, during the pandemic, care home facilities enforced strict 'lockdown' measures, preventing close relatives from visiting for weeks on end. However, our client, who had an elderly relative in residential care, was granted the privilege of visiting. This was possible due to their possession of valid power of attorney for their relative. The ability to maintain contact during such challenging times had a profound impact on all parties involved.
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone to make decisions on your behalf if you become unable to do so due to mental or physical incapacity. There are two main types of LPAs: Property and Financial Affairs LPA and Health and Welfare LPA.
Ensures Your Wishes Are Followed: An LPA allows you to specify your preferences and instructions regarding your financial affairs, medical treatment, and personal welfare. This ensures that your decisions and choices are respected, even if you're unable to communicate them later.
Peace of Mind: Knowing that you have appointed a trusted individual to make decisions on your behalf can provide peace of mind. You can be confident that your interests will be protected and your affairs managed according to your wishes.
Avoids Court Intervention: Without an LPA, if you become incapacitated, the court may need to appoint a deputy to manage your affairs. This process can be time-consuming, expensive, and may not result in decisions that align with your preferences.
Financial Management: With a Property and Financial Affairs LPA, your chosen attorney can manage your financial affairs, pay bills, access your bank accounts, and make financial decisions, which can be crucial for maintaining your financial stability.
Health and Care Decisions: A Health and Welfare LPA empowers your chosen attorney to make decisions regarding your healthcare and personal welfare. They can decide on medical treatments, living arrangements, and other care-related matters.
Continuity: An LPA allows for a seamless transition of decision-making, ensuring that your financial and personal matters continue to be handled without disruption during periods of incapacity.
Protects Vulnerable Individuals: LPAs are especially valuable for vulnerable individuals, such as those suffering from dementia or severe illnesses. They provide protection and advocacy when the individual is no longer able to advocate for themselves.
Reduces Family Conflict: Having a clear LPA in place can help prevent family disputes and disagreements about your care or finances. Your chosen attorney can follow your instructions, reducing the potential for conflicts.
It's important to consult with a solicitor or estate planner when creating an LPA to ensure it is executed correctly and in accordance with the law. Having a well-drafted LPA is crucial to protect your interests and wishes in case you become unable to make decisions for yourself.
Kat Chiva DipFA, MLIBF, CeMap, CeRER
Haverfords Director
