subject: Understanding Lasting Power Of Attorney [print this page] The loss of the breadwinner can be devastating to any family. One of the steps you can take to reduce the problems your family may face in the future is to leave a will - you might have already done so. It's always good advice to ensure that you have a valid will and that it is regularly updated. However, many people leave it at that, believing that they have put into place all the arrangements and protection that their family needs.
But what would happen if you were involved in an accident, or became a victim of a disease which does not result in your death but in the loss of your ability to manage your affairs? You could leave your family with considerable practical and financial problems at a time when they are also facing emotional difficulties and struggling to cope.
All this can be avoided if you instruct a solicitor to prepare a Lasting Power of Attorney (known as an LPA) whilst you are still in good health and of sound mind. Nowadays an LPA can be just as important as a will.
What making a lasting power of attorney involves?
1. LPAs replaced the more straightforward Enduring Power of Attorney on October 1, 2007 and are considerably more complicated. Existing Enduring Powers Of Attorney (i.e. those drawn up prior to October 1, 2007) will remain valid.
2. You have complete freedom in your choice of attorney although they must be aged over 18 and be neither bankrupt or mentally incapable.
3. Your attorney can be given the power just to look after your money and property, or you can also allow them to make decisions about other, non-financial, matters, including where you live or the kind of medical treatment you receive.
4. You must sign your LPA whilst you are healthy and mentally capable - it may come into effect before, as well as after, you are unable to manage your own affairs.
5. You are able to give guidance to your attorney in the LPA about matters you would like to have considered when decisions are made about you by your attorney.
6. LPAs are significantly more complex than the Enduring Power Of Attorneys they replace. An LPA must be registered before an attorney can act for you and anyone agreeing to act as an attorney under an LPA should be aware that they take on significant responsibilities under the Mental Capacity Act 2005.
If you are thinking of making a Lasting Power Of Attorney, make sure you take advice from a solicitor experienced in their preparation.
