According to HMRC, a lasting power of attorney (LPA) is a legal document where you the donor, point one or more people (known as attorney’s) to help you make decisions or make decisions on your behalf. Granting power of attorney to someone is something that is often associated with elderly people. However, we could be inflicted by a medical condition at any time, meaning we could lose the capacity to make sound decisions.
This does not constitute advice and advice should be sought in all instances before acting on it.
Peace of mind
Having a lasting power of attorney in place will give you and your family peace of mind that if anything does happen that means you become either physically or mentally incapacitated, then there is someone there to make decisions for you.
When choosing your ‘attorneys’ it is very important that you choose people who you trust and who you believe will make the same sort of decision that you would.
Which option to choose
There are two versions of a lasting power of attorney. The first is called a Property and Financial Affairs lasting power of attorney and the second is the Health and Welfare lasting power of attorney.
Property and Financial Affairs LPA
This version of a lasting power of attorney is used whilst the donor still has the capacity to make decisions. The attorneys have the power to make decisions regarding money, such as paying bills. It also enables them to make decisions on property and investments and on pensions and benefits.
Health and Welfare LPA
The Health and Welfare lasting power of attorney is only used when the donor loses the capacity to make decisions. Generally due to health reasons. The attorneys can make decisions regarding the donor’s health and living arrangements.
The attorneys may be able to spend some of the donor’s money on things like decorating the donors living quarters or on paying for extra support for the donor.
What happens if there is no lasting power of attorney?
If a lasting power of attorney is not appointed then someone will have to make an application to the Court of Protection to become your Deputy. Currently, this costs £400.
This can be stressful, complicated and take up time and money.
Once someone is appointed as a Deputy, they may have to pay extra costs to the court. Such as an annual supervision cost and assessment fees.
Dental & Medical Financial Services work alongside many healthcare specialists to give you access to the best advice. If you need legal help to organise a power of attorney, contact us.