Lasting Power of Attorney
A Lasting Power of Attorney Is A Legal Document That Lets You (The ‘Donor’) Appoint One Or More People (Known As ‘Attorneys’) To Help You Make Decisions or To Make Decisions on Your Behalf.
What is a lasting power of attorney?
An LPA is a legal document that gives one or more people – known as attorneys – the power to make decisions on your behalf. Despite what the name suggests, attorneys can be pretty much anyone you choose. Typically, they are family members or trusted friends.
The only restriction is that an attorney cannot be bankrupt or subject to a Debt Relief Order, for obvious reasons! There are two kinds of LPA, and we recommend you have both:
• Property and financial affairs
• Health and welfare
Property and Financial Affairs
A property and financial affairs LPA would be useful if you must go into hospital, for example. You might be laid up for a few days and unable to get to the bank. Or you might feel too ill to cope with financial matters. Your attorney could help by withdrawing cash from the bank and making sure your bills are paid.
Health and Welfare
The second kind of LPA covers health and welfare. This could be vital to you if the unthinkable happens and you fall victim to dementia, for example. It is surprisingly common, affecting 1 in 14 people over 65 and 1 in 6 people over 80. The symptoms of dementia are associated with a decline in the correct functioning of your brain. It can diminish your mental sharpness, affect your judgement, and cause memory loss.
With an LPA in place, you will have the peace of mind that one of your attorneys can make critical decisions about your health and welfare if you cannot. LPAs came into effect with the Mental Capacity Act of 2005, replacing EPAs (enduring powers of attorney).
There was only one kind of EPA, covering property and financial affairs. If you have one of those, it is a good idea to have an LPA to cover health and welfare too. This would allow your children to help care for you while you remain in your home. Most people agree that they would rather remain in their own home than be forced into a care home.
Business Lasting Power of Attorney
Who should have it?
Sole traders, partners in a partnership and controlling directors of a limited company might need a Business LPA.Without the powers afforded to attorneys in a Business LPA the company could stop being able to function properly
which could affect cashflow, goodwill and the reputation of the company.
This could directly or indirectly affect the income of the business owner’s family either in the short term, or permanently,
especially if the business is forced out of business because it has its hands tied when decisions need to be made.
We can help with Lasting Power of Attorney
Prior to 1st October 2007 there was another system called ‘enduring powers of attorney’ which largely address dissues of money and property. But a new Lasting Power of Attorney (LPA) was created under the Mental Capacity Act (MCA) of 2005 and essentially it covers not just money and property but medical issues too. So, in a sense, LPAs reflect changing times in respect of 21st century healthcare and the sad circumstances that can arise from it.
If you have your LPA in place, you have control over who will handle your affairs. Crucially, this appointment can only be made when you are mentally fit and well.Leaving it too late can mean that trusted loved ones and friends are powerless to make decisions for you.
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Frequently asked questions
A lasting power of attorney ( LPA ) is a legal document that lets you (the ‘donor’) appoint one or more people (known as ‘attorneys’) to help you make decisions or to make decisions on your behalf. … There are 2 types of LPA : health and welfare. property and financial affairs.
Lasting Power of Attorney (LPA) replaced Enduring Power of Attorney (EPA) on 1st October 2007. … Unlike with the EPA, the LPA requires that the person making the LPA is certified to have the mental capacity to do so, and that they are doing so without being subjected to any pressure or fraud.
If the agent is acting improperly, family members can file a petition in court challenging the agent. If the court finds the agent is not acting in the principal’s best interest, the court can revoke the power of attorney and appoint a guardian. The power of attorney ends at death.
An Enduring Power of Attorney (EPA) allows the attorney to make financial decisions on behalf of the donor after he/she loses mental capacity. An attorney cannot make medical, health care, accommodation or lifestyle decisions. … The attorney’s main role is to pay the donor’s bills and accounts with the donor’s money.
Those appointed under a Lasting Power of Attorney, or LPA, can sell property on behalf of the donor — ie the person who appointed them — provided there are no restrictions contained in the LPA. … The LPA must be registered with the Office of the Public Guardian before it can be used.