Don’t delay on LPA, legal expert advises
Categories: NewsDon’t wait until old age or ill health to arrange a Lasting Power of Attorney – that’s the advice from ORJ’s expert Fiona Mainwaring after a study showed the vast majority of over-40s do not have the safeguard in place.
A Lasting Power of Attorney (LPA) allows people to nominate who can make decisions on their behalf should they lose the mental capacity to do so themselves, either permanently or temporarily.
This includes who handles finances, pays bills or makes medical choices. Without an LPA in place, loved ones can face long delays, complex legal hurdles and unnecessary stress in order to manage someone’s affairs.
A study found only 17% of UK adults aged over 40 have an LPA in place, with most people saying they hadn’t set one up yet because they currently have full mental capacity.
Meanwhile, another study revealed 80% of over-55s haven’t named an attorney, while 64% of adults don’t understand how an LPA works.
Fiona, Head of Wills and Probate at ORJ, said: “Life is unpredictable. We don’t like to think about it but illness, accident or the effects of ageing can hit at any time. If that happens, who would handle your finances and bills, or make medical choices on your behalf?
“Having an LPA in place is so important and offers peace of mind. Crucially, an LPA can only be created when someone has the mental capacity to do so. Once that capacity has been lost, it’s too late.
“Regular surveys show there is a general lack of understanding about LPAs – and that needs to change.”
There are two main types of LPAs In England and Wales: an LPA for Property and Financial Affairs and an LPA for Health and Welfare.
An LPA for Property and Financial Affairs allows a chosen attorney to manage bank accounts, pay bills and deal with investments or even sell property if required.
An LPA for Health and Welfare, meanwhile, covers decisions about medical treatment, care arrangements and daily living needs.
Without an LPA in place, the next of kin may not be included in clinical decisions. Family or friends would need to apply to the Court of Protection to become a “deputy” – a process that can take months, involves substantial costs and requires ongoing court oversight.
Fiona added: “Specific instructions can be outlined within an LPA to ensure your wishes are respected.
“Choosing your attorney carefully is obviously crucial. It must be someone you trust implicitly, who understands your values and has the capability to handle the responsibility. Most people will appoint a family member, but it’s also possible to choose a professional, such as a solicitor, for impartiality.
“Making an LPA with the right help is relatively straightforward and inexpensive, but it can be complex for the layperson. Expert advice is advised to ensure the document is legally binding.”
Contact Fiona on 01785 223440 or team@orj.co.uk to start the process.