Introduction
Life is unpredictable, and planning for the future isn’t always about building wealth or safeguarding your assets. Sometimes, it involves ensuring that trusted individuals can step in to make decisions on your behalf when you’re unable to. One of the most effective ways to ensure this level of protection is by establishing a Lasting Power of Attorney (LPA). But when do you need one? And what types are available? This article will walk you through the essentials.
What is a Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more people (known as attorneys) to help you make decisions or to make decisions on your behalf when you’re no longer able to. This could be due to illness, an accident, or a progressive condition like dementia. The appointed attorney(s) can only act within the scope defined in the LPA and must always act in your best interest.
LPAs can give you peace of mind knowing that someone you trust is legally empowered to make decisions in your best interest when you’re unable to do so. It’s important to note that LPAs are only valid while you’re alive, and they must be registered with the Office of the Public Guardian in the UK to take effect.
When Should You Consider an LPA?
You might think that LPAs are only necessary for the elderly or those with existing health issues. However, everyone, regardless of age or current health, should consider setting one up. Here are key life scenarios when an LPA might be necessary:
- Planning for the Future: If you’re planning for your later years or have been diagnosed with a condition that could affect your decision-making ability in the future, it’s wise to set up an LPA early. This ensures that should the time come, your affairs are in trusted hands.
- Accidents or Medical Emergencies: Unexpected accidents, such as a car crash or sudden illness, could leave you incapacitated. Without an LPA, your loved ones may face legal hurdles in managing your medical care or financial affairs.
- Progressive Conditions: Conditions like Alzheimer’s or Parkinson’s disease gradually affect mental capacity. Setting up an LPA early in the diagnosis ensures your wishes are respected as the condition progresses.
- Trips or Living Abroad: If you’re living or working abroad for extended periods, having an LPA in place allows someone in your home country to manage your financial matters while you’re away.
Types of LPAs
There are two main types of LPAs, each covering a different aspect of your life: Property and Financial Affairs, and Health and Welfare.
Property and Financial Affairs LPA
A Property and Financial Affairs LPA allows your attorney to manage your financial matters. This can include:
- Managing bank accounts
- Paying bills
- Selling or purchasing property
- Collecting benefits or pensions
- Handling tax affairs
This type of LPA can take effect as soon as it is registered (with your permission), or you can specify that it only becomes active when you lose mental capacity. This flexibility is particularly helpful if you want your attorney to assist with complex financial decisions or day-to-day management in your absence.
Health and Welfare LPA
A Health and Welfare LPA enables your attorney to make decisions about your personal welfare and medical care. This can cover areas such as:
- Decisions about medical treatment
- Where you live (e.g., in a care home or with family)
- Daily routine decisions, such as your diet and activities
- Giving or refusing consent to life-sustaining treatment
Unlike the Property and Financial Affairs LPA, a Health and Welfare LPA only comes into effect if you lose the ability to make these decisions yourself.
Why Set Up an LPA Now?
While it’s easy to delay thinking about LPAs, waiting too long can have serious consequences. If you lose mental capacity without an LPA in place, your loved ones may face a lengthy and expensive process to get the legal authority to make decisions on your behalf. This process involves applying to the Court of Protection, which could be both time-consuming and emotionally draining.
Furthermore, you remain in control when you set up an LPA early, as it allows you to choose who you trust to make decisions for you. Without an LPA, the court could appoint someone who doesn’t know you or your wishes as well as a chosen family member or friend.
Conclusion: Don’t Leave It Too Late
Setting up an LPA is an essential part of future-proofing your life. It ensures that when you can no longer make important decisions—whether related to your finances, health, or personal welfare—someone you trust can legally take over. While it’s natural to think of LPAs as something for the distant future, life is unpredictable, and it’s better to be prepared.
The key takeaway? Don’t wait. Consider setting up both types of LPAs as part of your broader life planning. Whether you’re protecting your assets, safeguarding your personal welfare, or ensuring peace of mind for your loved ones, an LPA provides the necessary legal framework for someone to act in your best interest when you cannot.
Assisting individuals and families access quality, trusted experts and providers for personal and professional needs is the task of our Concierge division. If you are looking to arrange an LPA, get it touch at hello@kingsburyandpartners.ae and we’re sure to make the process as smooth as possible.
