Creating a Lasting Power of Attorney (LPA) is a crucial step in planning for your future. An LPA allows you to appoint someone you trust to make decisions on your behalf if you’re unable to do so. While it might be hard to think about, having an LPA in place ensures that your personal and financial matters are handled according to your wishes.
But why is having an LPA so important? Life is unpredictable, and unexpected situations can leave you unable to manage your own affairs. Whether due to illness, injury, or mental incapacity, having an appointed person to act on your behalf can provide peace of mind and prevent potential legal and financial problems. Without an LPA, your loved ones may face delays and added stress as they navigate the legal system to gain the authority to help you.
In this article, we’ll explore what a Lasting Power of Attorney is, why you need one, the different types available, the steps to create one, and common mistakes to avoid. By understanding the importance and process of setting up an LPA, you can take proactive steps to secure your future and make sure your affairs are managed by someone you trust.
What is a Lasting Power of Attorney and Why You Need One
A Lasting Power of Attorney (LPA) is a legal document that lets you appoint one or more people to make decisions on your behalf if you lose the ability to do so. These appointed people are called attorneys. The LPA ensures that someone you trust will act in your best interests and manage your affairs according to your wishes.
Having an LPA is essential for several reasons. If you become unable to make decisions due to illness, injury, or mental incapacity, an LPA allows your chosen attorneys to handle your personal and financial matters. This means they can take care of things like paying bills, managing your bank accounts, and making decisions about your medical treatment.
Without an LPA, your family or close friends might have to apply to the court to gain the authority to act on your behalf. This is not only time-consuming but can also be costly and stressful. By setting up an LPA, you can avoid these difficulties and ensure that your affairs are managed smoothly and efficiently.
Types of Lasting Power of Attorney
There are two main types of Lasting Power of Attorney: Health and Welfare LPA, and Property and Financial Affairs LPA. Each type covers different aspects of your life and ensures comprehensive support.
1. Health and Welfare LPA:
– This type of LPA allows your attorney to make decisions about your health and personal welfare. This includes decisions about your medical care, daily routine, and where you should live.
– The Health and Welfare LPA only comes into effect when you can no longer make decisions for yourself.
– With this LPA, you can also give your attorney the power to consent to or refuse life-sustaining treatment on your behalf.
2. Property and Financial Affairs LPA:
– This LPA covers decisions related to your financial matters and property. Your attorney can manage your bank accounts, pay bills, collect benefits, and even sell your home if necessary.
– Unlike the Health and Welfare LPA, the Property and Financial Affairs LPA can take effect as soon as it is registered, with your permission. This allows your attorney to assist you even if you are still capable but prefer help with financial matters.
Each type of LPA serves a specific purpose and ensures different aspects of your life are looked after. Many people choose to have both types in place to cover all potential needs. This way, they can be sure their health, welfare, property, and finances are all managed according to their wishes, providing a comprehensive safety net for the future.
Steps to Create a Lasting Power of Attorney
Creating a Lasting Power of Attorney (LPA) involves several key steps. Following these steps ensures that your LPA is valid and effective.
1. Choose Your Attorneys:
– Decide who you want to appoint as your attorneys. These should be people you trust, as they will have significant control over your affairs.
– You can choose one or more attorneys. If you appoint more than one, decide if they will act jointly (together) or jointly and severally (together or individually).
2. Complete the LPA Forms:
– You will need to fill out the appropriate LPA form: LP1H for Health and Welfare or LP1F for Property and Financial Affairs.
– These forms require detailed information, including your details, information about your attorneys, and any specific instructions or preferences you have.
3. Get the Forms Signed:
– The LPA forms must be signed by you, your attorneys, and a certificate provider. The certificate provider confirms that you understand the LPA and are not under any pressure to create it.
– The certificate provider can be someone you know well or a professional, such as a doctor or solicitor.
4. Register the LPA:
– Submit the completed forms to the Office of the Public Guardian (OPG) for registration. There is a fee for registering each LPA.
– The OPG will process your application. This can take several weeks. Once registered, the LPA becomes a legal document and can be used when needed.
Following these steps carefully ensures that your LPA is legally binding and ready to be used if and when the need arises.
Common Mistakes to Avoid When Making a Lasting Power of Attorney
While creating an LPA, avoid some common mistakes to ensure it serves its purpose effectively.
1. Choosing the Wrong Attorney:
– Avoid appointing someone who may not act in your best interests. Your attorneys should be trustworthy and capable of handling the responsibilities.
2. Not Being Specific:
– Lack of detailed instructions can lead to confusion. Be clear about your wishes and any specific preferences for how decisions should be made.
3. Failing to Inform Your Attorneys:
– It’s crucial to inform your chosen attorneys about their roles and responsibilities. They need to understand what you expect from them and be willing to take on the task.
4. Missing Signatures:
– Ensure all required signatures are in place. The forms must be signed by you, your attorneys, and the certificate provider. Missing signatures can invalidate the LPA.
5. Delaying Registration:
– Don’t wait too long to register your LPA with the Office of the Public Guardian. The process can take time, and any delay may leave you unprotected during critical moments.
Avoiding these mistakes ensures that your LPA will function smoothly and provide the support you need.
Final Thoughts
Setting up a Lasting Power of Attorney is an essential part of planning for the future. It provides peace of mind, knowing that your affairs will be handled by someone you trust if you become unable to manage them yourself. By understanding the steps involved and being aware of common pitfalls, you can create an effective and legally sound LPA.
Without an LPA, your loved ones may face significant delays and stress in gaining the authority to help you, which can be particularly challenging during difficult times. Ensuring that your personal, financial, and medical decisions are in the hands of someone you trust is crucial for maintaining control over your life.
At Sovereign Planning, we understand how important it is to have a well-crafted LPA in place. Our professional team is here to guide you through the process, making it simple and stress-free. Take the first step towards securing your future today by contacting Sovereign Planning for expert assistance with your Lasting Power of Attorney.