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Managing Partner, Lisa Potts, puts pen to paper to demystify the legal area of LPAs…”When I look back on the last 15 Years of my legal career there is one question that I am asked frequently…. should I have a Lasting Power of Attorney? And it’s the simplest one for me to answer…YES! It is my opinion every adult of any age should have an LPA. Whether you were likely to lose mental capacity or not used to be an older persons concern, but not anymore. If Covid has taught us anything it should be that anything no matter how unexpected can happen.
The best legal fore planning would be to ensure that you have a Will and Lasting Powers of Attorney. (LPAS) There are two types of personal LPAs and then you could also have a business LPA.
Personal LPAs
Looking at the personal LPAs firstly there is a Health and Welfare LPA and a Property and financial LPA.
The Health and Welfare LPA is a document in which you nominate a person or persons (you can have as many as you wish) to act as your Attorneys to make decisions on your behalf if you lose mental capacity in respect of your health welfare.
Some examples of the Health and Welfare LPA:-
- If you are unconscious whether you are placed on a ventilator to help you breathe
- During an operation if there is a complication what the best option would be for your surgery
- How care is provided to you
- Whether you receive life sustaining treatment
- There are lots of instances where the loss of Mental capacity is temporary, in which case the LPA is available when needed but as soon as you regain capacity the LPA stops being used and you return to decision making. The LPA is still stored though for future use if needed
A Property and Finances LPA by contrast covers decisions about your finances and any assets that you hold. Examples of these are
- Bank Accounts
- Your Mortgage
- Building society Accounts
- Bonds
- ISAs
- Utility Accounts
- Your Home
- Your Pension
- Your Life insurance
A benefit of the Property & Finances LPA is that it can be used by your Attorneys whilst you have mental capacity under your direction & consent, so for example if you were selling your house and had a holiday booked then you could authorise your Attorney to sign the Contract on your behalf. As well as giving you the surety that if you lost mental capacity then your bills would be paid and that your Attorneys could help you with all your property and financial affairs.
Who can you appoint?
As these are two separate LPAs you can choose different Attorneys for your Health & Welfare LPA and your property & finances LPA. Alternatively you can choose the same people. If you have no one that you feel comfortable undertaking these roles then as solicitors we can do this for you.
You can also appoint Replacement Attorneys to act should anything happen to your principal Attorneys. They are therefore very useful documents that can cover various scenarios and we can help you to get them drafted correctly and to give you the reassurance that your family are best placed to help you if you suffer mental capacity issues. Our recent blog post considers the questions you should ask yourself when choosing who to appoint.
Business LPA
If you run a business then ensuring you have a contingency plan should you suffer in health is extremely important – most banks require them should you request any lending with them. People often ensure that they have critical illness cover, but do not consider that an Attorney to act for them may be critical. Therefore a business LPA is essential good planning for your business and your contingency plans. You can have different Attorneys for your business & personal affairs . These types of LPAs require careful consideration, expert advice and we can help you in the preparation and completion of the same.
You can view our services and fees here and please don’t hesitate to contact us with any queries – we are always happy to help!
