We all know that we should write a Will, but too few of us know we should also consider something called Lasting Power of Attorney.
Sadly, it is estimated that by 2025 more than a million people in the UK will have some form of dementia, according to the Alzheimer's Society.
One in five people over 85 already live with it. Handling your financial affairs can become impossible which is why we recommend everyone plans ahead to ease the potential burden on relatives.
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more people, known as attorneys, to make certain decisions on your behalf. There are two types of LPA, one for property and financial affairs and another covering personal health and welfare.
These relate to financial matters. This type of LPA can be used as soon as it is registered by your Attorneys on your instructions. This ensures that your Attorneys can manage your finances if you were hospitalised but had full capacity. Alternatively, it is possible to restrict the LPA so it can only be used if you become mentally incapable.
These relate to decisions about health, personal welfare and where you live. This could include giving or refusing consent to medical treatment on your behalf. This type of LPA can only be used if you are mentally incapable of making such decisions.
Lasting Powers of Attorney replaced Enduring Power of Attorney (EPAs) on October 1, 2007. EPAs that were drawn up and signed before this date are still valid. EPAs only cover property and financial affairs, not health and welfare.
If you have an EPA we will review this for you. If you did wish to amend the power we can have this replaced with an LPA, so long as you have the mental capacity to do so.
Kate Garraway’s documentary Kate Garraway: Finding Derek, has exemplified the importance of having Lasting Powers of Attorney in place.
Time spent during the lockdown has given many of us the chance to think about putting our affairs in order such as putting in place Lasting Powers of Attorney. (LPAs)
As a business owner if you become mentally incapacitated tomorrow then who would pay your bills or invoices, ensure staff salaries are paid and complete any outstanding work for your customers?