Planning for the future isn’t always easy, especially when it involves imagining a time when we might need assistance in managing our affairs. However, setting up a Lasting Power of Attorney (LPA) can be essential in ensuring our wishes are respected and our needs are met if we lose the capacity to make decisions ourselves. There are two main types of LPAs: one for health and welfare, and another for property and financial affairs. Each serves a unique role, providing peace of mind for you and your loved ones.
Health & Welfare LPA
A Health and Welfare LPA allows you to appoint one or more trusted people (attorneys) to make decisions on your behalf regarding personal matters such as:
- Living arrangements: Deciding where you should live if you require care or support.
- Medical treatment: Making decisions about your medical care, including giving or refusing consent for treatments (within the guidelines set out in your LPA).
- Daily routines and activities: Overseeing aspects of day-to-day life, including diet, dress, and social activities.
An attorney under a Health and Welfare LPA can only act if you lack the mental capacity to make these decisions yourself. Without this type of LPA, if you become unable to make decisions regarding your welfare, medical professionals and local authorities may need to make these choices, potentially without input from those who know you best.
Property & Financial Affairs LPA
The Property and Financial Affairs LPA enables your chosen attorney(s) to handle financial matters, such as:
- Managing bank accounts and investments
- Paying bills and debts
- Buying or selling property
This type of LPA can be activated either while you still have capacity (for example, if you simply prefer assistance) or if you lose the ability to manage these affairs yourself. Without a Property and Financial Affairs LPA in place, your finances could be frozen, and family members may need to apply to the Court of Protection for access, a process that can be costly, time-consuming, and stressful.
The consequences of not having an LPA
If you don’t have LPAs in place, it can lead to challenging situations for your loved ones. Without a Health and Welfare LPA, relatives have limited rights in deciding on your care, and they may have no legal authority to influence critical health and welfare decisions. For financial matters, lack of an LPA could mean that everyday financial tasks, like paying bills or accessing bank accounts, are left in limbo until a court-appointed deputy is established.
Why choose trusted attorneys?
Choosing the right attorneys is crucial, as they will act in your best interests and make important decisions on your behalf. You can appoint multiple attorneys, who can be required to make decisions together (jointly) or independently (jointly and severally), allowing for flexibility and peace of mind.
An attorney’s role also involves duties of due care, honesty, and confidentiality as set out by the Mental Capacity Act 2005. They must act solely in your best interests, avoid conflicts of interest, and adhere to any specific instructions you may include in the LPA.
While LPAs may not be at the forefront of most people’s plans, they can offer invaluable security for you and your loved ones. Setting up an LPA can prevent complications, save time and costs, and ensure that trusted individuals have the legal authority to make decisions in line with your wishes. If you’re considering setting up an LPA or need further guidance, consulting our team can help you understand the best options for your personal circumstances and ensure that your intentions are safeguarded for the future. Our partners are also happy to act as attorney where appropriate and do so regularly.