You may have heard Martin Lewis recently say that a Lasting Power of Attorney (often referred to as an LPA for short) is more important than a Will. But why is that?
A Will is a vital legal document that deals with your estate after you pass away. An LPA, on the other hand, is a legal document that appoints a person or people (your attorneys) to make decisions for you whilst you are still alive.
If you lose capacity to manage your affairs in your lifetime, an LPA would allow your attorneys to step in and make important decisions about your health or finances on your behalf.
There are two types of LPA:
Health and Welfare
Property and Financial Affairs
The Court of Protection
If you do not have an LPA and you lose capacity to make your own decisions about your health or finances, then your loved ones would have no other option but to apply to the Court of Protection to become your deputy in order to manage your affairs.
The Court of Protection is slow, not only with initial applications, which can take over a year, but also because further permission from the court may be required to make certain decisions that are not outlined in the initial application.
For example, a deputy might have the right to make decisions about the health of a loved one but would have to make a further application to sell a property in order to finance that health care decision.
This could leave your family struggling to fund the cost of your care or unable to pay the bills on your home whilst the deputyship application is in process. This can be incredibly stressful for them to deal with, in addition to the fact that, if you have lost capacity, you are likely suffering from serious health issues.
Joint Bank Accounts
It is also worth considering the impact of loss of capacity on a partner’s ability to access funds in a joint account.
Banks have the right to freeze a joint account if one of the parties has lost mental capacity. Without an LPA, you could find yourself unable to access funds to pay bills or meet mortgage payments on time.
Act Now
Registering an LPA can take between 8–12 weeks. You cannot enter into an LPA once you have lost capacity, so time is of the essence.
To protect against future nightmare scenarios, it is best to ensure you have an LPA in place for your loved ones and for your own peace of mind.
Contact our team below to set up an appointment and discuss a Lasting Power of Attorney.
