It’s all too easy to dodge conversations about putting a power of attorney in place with a “maybe later” or quip about it being a morbid subject. Yet, everyone needs one, and I’m going to explain why.
A lasting power of attorney (LPA) is a document that says:
“If I lose mental capacity, I trust this person or these people (your attorney or attorneys) to make decisions on my behalf”.
It’s a tremendous amount of power that you’re giving away, so you need to choose your power of attorney(s) with absolute trust in mind.
To set up an LPA, you must have full mental capacity and be over the age of 18. Losing that capacity could be the result of dementia, a stroke, cancer, or any other type of life-limiting illness.
It could also include suffering from a head injury in an accident or even mental illness, such as depression, anxiety, or schizophrenia. One in six of us will experience a mental illness at some point in our lives. After the age of 45, we are five more times likely to suffer a stroke.
An LPA covers two areas:
- Property and finance: if you wish to speak to your bank, solicitor, or financial advisor about your finances.
- Health and welfare: which can include treatment options should you become ill (if any), where you’d like your treatment, and whether life support machines stay on should you enter a coma that you’re not going to recover from.
If you’ve lost mental capacity and don’t have an LPA, absolutely no one can speak on your behalf — not even your parents, children, siblings, or spouse. They simply have no legal right. They can’t even talk to your street bank on your behalf without consent.
The consequences of not having an LPA in place can be financially and mentally devastating. You may need to sell a loved one’s house to pay for care fees, for example. Without an LPA, you can’t.
With no LPA in place, the case will have to go to court and before a judge. These are called ‘deputyship orders’, and they’re unbelievably complicated and expensive.
If you lose, it becomes even more costly. You may have to employ pricey barristers to argue your case. I’ve dealt with cases that have gone on for nine months and have cost over £3,000. Then you have to renew it every year, which will cost hundreds every time.
An LPA is particularly important if you’re a business owner. If you don’t hand your business affairs over to someone, then it could all go to waste.
I can put an LPA in place for you for £225 plus VAT, which is peanuts compared to what your family could stand to lose. Once it’s done, then it’s done. No court cases, no stress, no re-writes, and no extra costs.
No one will be able to contest your LPA document, which the government will store in a central database.
I provide honest advice to protect families.
To find out more about setting up an LPA, please get in touch with me on 07557 682702.