As estate planning professionals, we appreciate the significance of will writing in providing for your loved ones and securing your legacy. However, we also recognise the importance of including Lasting Powers of Attorney (LPAs) within a comprehensive estate planning process. An LPA facilitates the appointment of trusted individuals to make decisions on your behalf should you become unable to do so due to illness or injury. Ensuring your financial affairs and healthcare choices are in competent hands is crucial in safeguarding your welfare and interests during life’s unforeseen challenges.
In this educational guide, we will examine the role of LPAs within the broader context of estate planning in England and Wales. We will explore the two types of LPAs – financial and property decisions, and health and welfare choices – and discuss the process of creating and registering them. Our dedicated experts are committed to offering clear, concise guidance and advice on the importance of LPAs in ensuring your decision-making authority is protected in unforeseen circumstances.
Understanding the Role of Lasting Powers of Attorney in Estate Planning
Lasting Powers of Attorney: An Overview
LPAs empower trusted individuals to manage your affairs when you are unable to do so. Here, we outline the two primary types:
1. Property and Financial Affairs LPA: Provides your attorney with the authority to handle your financial matters, such as paying bills, managing property, and overseeing investments.
2. Health and Welfare LPA: Grants your attorney the ability to make decisions regarding your healthcare, treatment, and daily living arrangements, but this power is only activated when you lack mental capacity.
The Process: Creating and Registering an LPA
A robust LPA ensures the seamless transition of decision-making authority when required. Follow these steps in establishing your LPA:
1. Choose Your Attorneys: Select individuals who are responsible, trustworthy, and capable of managing your affairs. Consider appointing more than one attorney or a replacement attorney in case of unforeseen circumstances.
2. Complete the Relevant Forms: Access the appropriate forms—either for the property and financial affairs LPA or the health and welfare LPA—from the Office of the Public Guardian (OPG) website or seek professional advice to ensure accuracy.
3. Obtain the Required Signatures: Acquire the signatures of your attorneys, witnesses, and a ‘certificate provider’—an independent individual who reviews your LPA, confirming that you have the mental capacity to make this decision.
4. Register with the Office of the Public Guardian: Submit your LPA forms to the OPG, accompanied by the applicable registration fee. The registration process typically takes eight to twelve weeks.
Revoking, Updating, or Reviewing an LPA
Periodic reassessment of your LPA remains vital, as they may necessitate adjustments or even revocation. Consider these situations:
1. Revoking an LPA: Revoke your LPA when it is no longer required or if you have concerns about your attorney’s suitability. Notify your attorney, any financial institutions, and the OPG, completing the required revocation form.
2. Updating an LPA: Occasionally review your LPA to guarantee the attorney’s details and your wishes remain accurate. Modify your LPA by replacing attorneys, making updates, or creating a new document.
3. Reviewing an LPA: Regulate your attorney’s actions, ensuring that they act in your best interests. If concerns arise, contact the OPG to investigate, potentially suspending or cancelling the LPA if required.
Common Misconceptions Surrounding LPAs
Dispelling common misconceptions about LPAs fosters a better understanding of their importance in your estate plan:
1. Accessibility: An LPA is not only for the elderly; accidents or illnesses can affect anyone, irrespective of age, reaffirming the importance of having an LPA in place no matter your stage in life.
2. Spousal Authority: A spouse does not automatically possess legal authority to manage their partner’s affairs. Establishing an LPA ensures your marital partner can act on your behalf if required.
3. Limitations of Wills: A will manages your estate following death, whereas an LPA safeguards your financial and healthcare decisions during your lifetime when you lose mental capacity.
4. Power of Enduring Powers of Attorney (EPAs): EPAs ceased to be a valid alternative in 2007. If you created an EPA before this time, consider updating the document to an LPA to ensure comprehensive protection.
Conclusion
Incorporating Lasting Powers of Attorney within your estate plan guarantees the safeguarding of your financial and healthcare decisions should you become incapacitated. By understanding the two types of LPAs, the process of creating and registering them, and the fundamental misconceptions surrounding them, you can prepare for the future and protect your interests during unpredictable times. We, at Sovereign Planning, are dedicated to helping you create and implement effective LPAs in England and Wales, ensuring a comprehensive estate plan that fulfils your unique needs.
Secure the future of your financial and healthcare decisions by crafting a robust lasting power of attorney with expert assistance from the team at Sovereign Planning. Contact us today to begin creating a tailored estate plan that provides peace of mind in England and Wales.
