When should I organise Lasting Powers of Attorney?

Understanding what a Lasting Power of Attorney (LPA) is and how it functions can be a bit confusing for many people. Simply put, an LPA is a legal document that allows you (the donor) to handpick and appoint one or more individuals (attorneys) to make decisions on your behalf in the event that you lose mental capacity at some point down the line.

Surprisingly, as of 2021, only seven percent of people in the UK had taken the step to create and register an LPA. There is a misconception that this is something reserved for the 'older' generation or those with substantial assets, but the reality is that anyone over the age of 18 can establish an LPA – but it's a crucial step that can only be taken while you're mentally sound. Taking this initiative now can offer you and your family immense peace of mind.

Contrary to a popular belief, the responsibility of an attorney doesn't automatically fall to the next of kin, granting them the right to make decisions on your behalf.

If you opt not to designate an attorney (and subsequently lose mental capacity), the Court of Protection has the authority to appoint a deputy, and you won't have any say in this appointment. Alternatively, a loved one will need to apply to the Court of Protection to become a Deputy to make decisions on your behalf. This is a long, expensive process which involves ongoing record keeping and can result in delays to decisions needed about your health and finances.

For most of us, it's wise to be prepared for unforeseen accidents or illnesses that might render us incapable of making our own decisions due to a lack of mental capacity. Being ready for any eventuality is a sensible move, as you never quite know what might be lurking around the corner.

Curious about how your chosen attorney – the person entrusted to make decisions on your behalf – will act? It's comforting to know that attorneys are bound by a legal duty to make decisions that are firmly in your best interests. This duty involves considering your current wishes what they might be in the future. Furthermore, they must include you in the decision-making process whenever feasible.

While this process may be straightforward if you share a close, personal relationship with your attorney, it's always advisable to ensure your wishes are crystal clear, regardless of your relationship with them. If possible, express your wishes verbally and also in writing while you still have mental capacity - doing so ensures that any decisions made on your behalf reflect your own desires.

When creating or registering an LPA, it's essential to bear in mind that anything documented in the LPA is legally binding. Consider updating your preferences and appointed attorneys if they no longer align with your wishes. If you make an LPA in your younger years, you may wish to appoint any children you have once they are of an appropriate age for example. Importantly, both types of LPAs (health & welfare and property & financial affairs) can be used temporarily or terminated if you regain mental capacity.

In essence, creating an LPA empowers you to make informed decisions about your assets, property, finances, health, and well-being – both now and in the future. It offers peace of mind, knowing that your affairs will be managed without causing undue costs, delays, and stress for your family and loved ones. By taking this step, you are ensuring control over your future and providing peace of mind for your loved ones. Remember, it's never too early to get organised.

If you would like to chat about the process of organising your LPA(s), please don’t hesitate to get in touch. We can offer estate planning package deals to ensure your wishes are reflected across your Will and LPAs.

Call 0117 3636 212 or email office@haroldstephens.co.uk to start organising your affairs with the assistance of our experts.