wills, trusts and probate

Wills, trusts and probate is a common practice area for most law firms. It is also an area that creates a considerable amount of litigation so the importance of planning can encourage clients to avoid the pitfalls of taking inadequate action.

The article below gives a gentle overview of what an LPA is, along with the benefits which having one provides. It invites the reader to get in touch to find out more or to get an LPA in place.

What Is An LPA And Should You Consider One?

An LPA is an abbreviation of “Lasting Power of Attorney”. Briefly put, an LPA is a document by which a person grants powers to someone else to deal with their affairs.

There are two types of LPA, the first being one that deals with property and financial affairs. Generally, this is intended to cover the ability to pay day to day bills and banking but it can also extend to decisions such as selling your home. It is important to note that this type of LPA can come into effect as soon as it is registered. This means that it can come into effect, before mental capacity has been lost, if the LPA says so.

The second type of LPA deals with health and welfare. This for example could cover such issues as being placed into a care home, medical care, and life sustaining or end of life treatment. An important difference with this type of LPA is that it only comes into effect when you have lost mental capacity and can no longer look after your own affairs.

Given the hugely important decisions an attorney can make, it is very important to choose a person or people who you are confident will look after your best interests when their help with your affairs is needed. You are placing a huge amount of trust them. If you appoint more than one attorney, you need to decide whether to allow them to make decisions independently of one another or whether they all need to be in agreement.

An LPA needs to be registered to be used and this requires forms to be completed and fees paid.

Many people only put in place LPAs once they realise what happens if someone loses capacity and no LPA is in place. Typically, the first time someone becomes aware of LPAs and deputyship is when a family member becomes affected by a health issue such as dementia or alzheimers. No-one has the right to look after your affairs if you lose mental capacity. If someone wants to look after your affairs, such as accessing your bank to pay routine bills, with no LPA in place they need authority from the court to do so. The court authority comes in what is known as a deputyship order. That involves a court application which can be a slow and costly process, especially if there are different people competing for the appointment. The delay and cost can affect how quickly your affairs can be looked after and put those who are trying to look after you, to cost and time.