Estate Planning with Lasting Power of Attorney: Types & Benefits

Estate Planning with Lasting Power of Attorney: Types & Benefits

Effective estate planning not only involves creating a will to ensure proper distribution of your assets but also preparing for a situation where you may become unable to make decisions for yourself. Lasting Power of Attorney (LPA) is a crucial document that grants one or more trusted individuals the legal authority to make decisions on your behalf when you lack the capacity to do so.

Incorporating an LPA in your estate planning strategy can provide you and your loved ones with peace of mind, knowing your affairs will be managed by someone you know and trust even in the most challenging times. This article aims to provide an in-depth understanding of LPA, its types, benefits, and the assistance offered by Sovereign Planning’s professional will-writing services in setting up an LPA tailored to your unique requirements.

Understanding the Two Types of Lasting Power of Attorney

LPA can be divided into two main categories, each granting different decision-making powers to your chosen attorney(s):

1. Property and Financial Affairs LPA: This type of LPA covers decisions related to your financial affairs, such as managing bank accounts, paying bills, and selling properties. It can be used both when you lack the capacity to make decisions and, with your explicit consent, whilst you are still mentally capable.

2. Health and Welfare LPA: This LPA allows your attorney(s) to make crucial decisions about your medical care, living arrangements, and daily care routines, but can only be used when you lack the capacity to make these decisions yourself.

Benefits of Including LPA in Your Estate Planning Strategy

Incorporating LPA in your estate planning offers numerous benefits, including:

1. Control and autonomy: By appointing trusted attorney(s), you retain control over your affairs even if you become incapacitated, ensuring decisions are made according to your values and preferences.

2. Peace of mind: Having an LPA in place provides you and your loved ones with reassurance that a trusted individual will manage your interests when you are unable to do so yourself.

3. Avoiding delays and intervention: Without an LPA, your family may need to apply for deputyship from the Court of Protection, a lengthy and expensive process, to gain control over your affairs. An LPA helps to avoid this situation.

4. Protection for business owners: An LPA can be tailored to include provisions for managing your business in the event of your incapacity, safeguarding your company’s future.

Key Considerations When Setting Up an LPA

Planning and creating an LPA involves several crucial considerations:

1. Choose your attorney(s): Select individuals you trust implicitly to make decisions in your best interests. Consider their ability to handle the required responsibilities, and ensure they understand your values and wishes.

2. Communicate with your attorney(s): Discuss the appointment with your chosen attorney(s), ensuring they understand the expectations and responsibilities associated with the role.

3. Appoint replacement attorneys: Designate alternative attorneys in case something happens to your primary choice(s), ensuring ongoing protection for your interests.

4. Seek professional guidance: Work with professionals, like Sovereign Planning, to create an LPA that accurately reflects your wishes and complies with legal requirements.

How Sovereign Planning Can Help You Set Up an LPA

Turn to Sovereign Planning’s professional will-writing services for guidance and support in setting up your LPA:

1. Expert advice: Sovereign Planning provides insight into the intricacies of LPA, helping you choose the right type(s) and attorney(s) based on a comprehensive understanding of your individual circumstances.

2. Legal compliance: Our team ensures that your LPA adheres to all legal requirements, reducing the risk of challenges or delays in the event of your incapacity.

3. Ongoing review and updates: As your life circumstances change, Sovereign Planning can offer support in reviewing and updating your LPA to reflect your evolving needs and wishes.

4. Simplified process: With our professional input, setting up your LPA becomes less daunting as we streamline the process and handle the necessary legal paperwork on your behalf.

Final Thoughts

Incorporating Lasting Power of Attorney (LPA) into your estate planning strategy is essential for ensuring that your affairs are managed according to your wishes when you lack the capacity to make decisions yourself. By understanding the different types of LPA, their benefits, and the practicalities of setting one up with the support of Sovereign Planning’s professional will-writing services, you can create a comprehensive plan that safeguards your interests and provides peace of mind for your loved ones. 

Preserve your autonomy and protect your interests with a tailored Lasting Power of Attorney. Collaborate with Sovereign Planning’s professional will-writing services to set up an LPA that complements your estate planning strategy and safeguards your future. Contact our team today to begin the process!

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