Planning for the Future

Author(s)
Vicky Raynes

As life expectancy increases, handling financial and personal affairs later in life can become more difficult, particularly if physical or mental incapacity is becoming a problem.

Lasting Powers of Attorney (LPAs) were introduced in October 2007 replacing the more easy to prepare and use Enduring Powers of Attorney (EPAs). There has been a mixed reaction to the new and much longer LPAs, but EPAs made before 1 October 2007 remain fully valid and usable.

LPAs can offer reassurance to all age groups that their affairs will be handled by someone they trust in the event that they are unable to do so personally. If a person loses capacity and no LPA has been made, a third party must apply to the Court of Protection to be appointed to deal with their affairs; it may be someone who they would prefer not to handle your affairs and the procedure can be lengthy, costly and potentially burdensome.

There are two types of Lasting Powers of Attorney. The Personal Welfare LPA allows the Donor (the person making the LPA) to appoint up to four Attorneys to make personal or medical decisions on their behalf if, and only if, they have lost capacity to do so. This can include decisions about where they should live, what they should eat or being able to refuse or consent to life sustaining treatment. If they do not wish their Attorney/s to have such wide powers they can include restrictions or give guidance.

The Property and Affairs LPA ensures that the Attorney/s can look after and manage the Donor’s financial affairs. This LPA can take affect as soon as it is registered with the Office of the Public Guardian and, unlike the Personal Welfare LPA, can be used, if required, whilst the Donor still has capacity. However, the power can be limited so that, like a Personal Welfare LPA, it only comes into affect if the Donor has lost capacity. The LPA is an extremely powerful document and it is therefore important for the Donor to appoint people that they trust and will manage their affairs in their best interests.

Although losing capacity is not a scenario that anyone likes to envisage, the unfortunate reality is that it is becoming more prevalent and by making a Lasting Power of Attorney it will be you, rather than the Court, who will decide who makes decisions on your behalf, at your most vulnerable time.

For more information on LPAs contact Vicky Raynes at Birkett Long LLP on 01206 217611 or email vicky.raynes@birkettlong.co.uk


Media
Colchester Business Gazette

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