As we navigate life’s unpredictability, having a plan to safeguard your financial and personal affairs in the event of incapacity is crucial. We, at Sovereign Planning, understand the importance of establishing a lasting power of attorney (LPA) and how it can greatly impact your life and that of your loved ones. Our compassionate and experienced professionals are committed to helping you navigate the complexities of establishing an LPA, ensuring that your decisions are honoured in any unforeseen circumstances.
In this insightful guide, we will explore the importance of setting up a lasting power of attorney and its two main types: Property and Financial Affairs LPA and Health and Welfare LPA. We will discuss the benefits of having an LPA in place, the steps to creating one, and the role of your attorney in overseeing your affairs. By providing a comprehensive understanding of the LPA process, our experts enhance your peace of mind and empower you to make informed decisions about your financial and personal well-being.
Lasting Power of Attorney – Safeguarding Your Financial and Personal Welfare
Two Main Types of Lasting Power of Attorney
Understanding the differences between the two main types of LPA – Property and Financial Affairs LPA and Health and Welfare LPA – is essential for making informed decisions about safeguarding your future:
1. Property and Financial Affairs LPA: This type of LPA authorises your appointed attorney to manage and make decisions related to your financial affairs, such as paying bills, handling investments, and selling property, in the event you are unable to do so yourself.
2. Health and Welfare LPA: A Health and Welfare LPA enables your attorney to make decisions regarding your healthcare, daily routine, and medical treatments when you lack the capacity to make those decisions yourself.
The Benefits of Having a Lasting Power of Attorney
Establishing an LPA offers numerous advantages for you and your loved ones:
1. Peace of Mind: Knowing that someone you trust has been authorised to manage your affairs in the event of incapacity provides a sense of security for both you and your family.
2. Control: An LPA allows you to control who will manage your affairs and make decisions that align with your values and preferences, helping to avoid potential conflicts and misunderstandings.
3. Timely Decision-Making: By appointing an attorney, you ensure that decisions about your financial and personal welfare can be made promptly when needed, avoiding costly delays.
4. Legal Protection: Establishing an LPA can help prevent the need for a court-appointed deputy, who may be less familiar with your preferences and wishes than a person you have personally chosen.
Steps to Create a Lasting Power of Attorney
To establish an LPA, follow these steps:
1. Choose Your Attorney: Select a trusted individual, such as a family member, friend or professional adviser, to act as your attorney, ensuring they are over 18 years old, have mental capacity, and are not bankrupt.
2. Complete the LPA Form: Obtain the appropriate LPA form from the UK Government’s website and provide all relevant information, including which LPA you are creating and any restrictions or guidance you would like your attorney to follow.
3. Sign and Have Witnesses: Sign the completed LPA form in the presence of a witness, who must also sign the document. Your attorney will also need to sign, acknowledging their role and responsibilities.
4. Register the LPA: Submit the signed LPA form to the Office of the Public Guardian (OPG) along with the registration fee. The OPG will review and register your LPA, making it legally effective.
The Role of Your Attorney in Overseeing Your Affairs
Your attorney plays a significant role in safeguarding your financial and personal welfare, and understanding their responsibilities is paramount:
1. Acting in Your Best Interest: Your attorney must always act in your best interest, making decisions that are aligned with your preferences, values, and wishes.
2. Maintaining Your Independence: Your attorney should help maximise your independence, allowing you to make choices and decisions for yourself whenever possible.
3. Keeping Accurate Records: Your attorney is required to maintain accurate records of any decisions made on your behalf and any transactions involving your finances.
4. Confidentiality: Your attorney must respect your privacy, keeping your personal and financial matters confidential, except in situations where disclosure is necessary for your best interest.
Conclusion
Establishing a lasting power of attorney is a vital step in safeguarding your financial and personal welfare, ensuring that your affairs are managed by someone you trust in the event of incapacity. By understanding the types of LPA, their benefits, and the process of creating one, you can take a proactive approach to protecting your future and maintaining your peace of mind. Our dedicated and compassionate team at Sovereign Planning is committed to providing expert guidance on lasting power of attorney, helping you navigate this essential aspect of your well-being in England and Wales.
Secure your financial and personal welfare with a lasting power of attorney managed by a trusted individual. Contact our experienced team at Sovereign Planning today for professional guidance and support on LPA services in England and Wales.
