Don’t leave it too late

 

Will it ever happen to you?

According to the Alzheimer’s Society, there are already more than 750,000 people in the UK suffering from dementia and there is, unfortunately, a steady rise in its incidence. As life expectancy increases, so does the chance of being a sufferer. Faced with these statistics, it makes sense to consider what you can do now to protect your assets and your family in the event that you are no longer able to make decisions or manage your own finances.

 

What is an LPA?

A Lasting Power of Attorney (LPA) is a legal document which will help ensure that your financial affairs are managed in your best interests. In effect, you nominate someone you trust (your attorney) to manage your financial affairs or personal welfare, giving you greater control of your future and not leaving matters to chance.

 

How does an LPA work?

You are able to choose now, the person or persons who you want to make decisions on your behalf if you were not able to do so. This can cover your financial affairs such as operating bank accounts and dealing with property. Your attorney can also be given authority to decide day to day issues with regard to your welfare, such as where you live and the type of medical treatment you receive. You can appoint one or more attorneys and specify whether they act together or separately.

 

Why make one now?

LPAs are not just for elderly people. You may not need an LPA now, but if you do need it at a later stage, you may not be well enough to effectively sign it. Just because you sign an LPA now does not mean that it has to be used now or ever. LPAs can be revoked and changed as long as you have the mental capacity to do so

 

How is an LPA created?

An LPA is established by using one of two prescribed forms; Property and Financial Affairs or Health and Personal Welfare. They must be registered at the Office of the Public Guardian before they can be used.

 

What should you do?

At Crellins Carter we think it’s important to make plans now for your old age, when you may not be able to manage your affairs due to mental or physical impairment. If you lose mental capacity and do not have an LPA someone will need to make an application to the Court of Protection to be appointed as your deputy. This is a lengthy and expensive process and there is a duty on the deputy to report to the court on an on-going basis. It also means you have lost control. As these are quite complicated legal documents care should be taken when creating an LPA and we recommend you take professional advice to ensure that it meets your specific requirements.