What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document where you appoint people (Attorneys) to make decisions on your behalf for in the event you become incapacitated.
The law currently states that if you become incapacitated and do not have an LPA, your Local Authority will take control of the financial and asset related areas of your life, and Social Services will manage your health and wellbeing requirements.
In this circumstance, your loved ones would have to apply for a Deputyship through the Court of Protection, this can be a costly, timely and restrictive process which in no way guarantees you will have the right people managing your life as you would have otherwise desired.
With an LPA, you can be assured that you have the people who you trust to carry out your wishes in respect of your personal finances, health matters and if necessary your business affairs, potentially giving you a sense of the normality you are accustomed to.
There are three types of LPA available:
Property & Financial Affairs
This document grants permission to your chosen Attorney(s) to handle decisions relating to your assets, liabilities, financial commitments and requirements.
Health & Welfare
This document empowers your Attorney(s) to make the important decisions surrounding your healthcare and wellbeing. This ranges from treatments and procedures of to life sustaining treatment and resuscitation.
This is essentially, a second financial LPA which appoints people with perhaps special knowledge of the workings of your business(es). For example, you may have a spouse or other loved ones look after your personal finances but a business partner managing your business dealings.