Author: Vicky Raynes

Diminishing mental or physical capacity is a worry for many people, either for themselves or in relation to an elderly relative. Who will be able to pay the bills? Will my son or daughter be able to sell my house to fund residential care? Who will decide where I will live and what medical treatments I will have?

The simple answer is: you cannot be sure unless you make a Lasting Power of Attorney (LPA).

Whilst many think of LPAs as a document to help the elderly should they lose mental capacity they are equally applicable to younger people. Let us take the example of Mr Bloggs. Mr Bloggs is married, runs a business, owns his own home and has a bank account in his own name, out of which the mortgage is paid. Mr Blogg’s wife has a bank account of her own with a small balance but looks after the children and does not have a significant income.

Following a terrible accident Mr Bloggs no longer has the capacity to manage his own finances. Without an LPA somebody would need to apply to the Court of Protection to act in his place. Anybody can make such an application and it wouldn’t necessarily be Mrs Bloggs! Applications bear significant costs and take time, during which Mr Blogg’s bank account cannot be accessed, leaving his wife and children in a precarious financial position and the business at a stand still. If Mr Bloggs had made an LPA appointing his wife and perhaps even a business colleague to look after the business affairs, action could have been taken straight away. This saves costs, time, inconvenience and considerable stress at an already upsetting time.

Alternatively, there may come a time where Mr Bloggs is away on business for an extended period. The same problems can arise; Mrs Bloggs would not be able to access the bank account in her husband’s name and crucial decisions for the company may be delayed. All this can be solved by having an LPA.

With new form LPAs introduced on 1 October 2009, there has never been a better time to act. Whilst it is vital to have a Will to protect your loved ones after you die, it can be forgotten that they may need protecting during your lifetime. An LPA will ensure that the person you trust is the one with the power to make those crucial decisions for you.

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