Power to the Power of Attorney
A lasting power-of-attorney (LPA) is a legal document that allows you to appoint a person (or persons) as attorney to act on your behalf to help you make appropriate decisions and deal with things where you may not be able to.
The person creating the LPA is known as the donor and the attorney would be the person(s) who is selected to assist you. Although it is assumed that an LPA is more often prepared for those more elderly with obvious needs of support, you never know if you may need assistance and an LPA can in fact be valuable at any time of life.
Once the LPA document is registered with the Office of the Public Guardian it will become valid from that date (unless stated otherwise on the form). It could become particularly beneficial should anything happen to you or a loved one, such as in the instance of an accident or illness, meaning an attorney is able to take action on behalf of the donor. It is often used when someone lacks mental capacity.
There are two types of LPA documents:
One to cover your HEALTH and WELFARE
One to cover your PROPERTY and FINANCIAL affairs
You do not have to choose both and you could just do one if you deem it appropriate.
The Health and Welfare LPA will allow an attorney to assist with any medical care and other physical support needed, and will even extend to them making a decision about any life-sustaining treatment, which you can give specific instructions on beforehand.
The Property and Financial LPA will enable an attorney to deal with financial matters, such as paying bills, managing bank payments and dealing with property and other financial assets and investments.
“An attorney is obliged and required to act in your best interest and cannot make decisions to suit themselves. This is the reason why you should always choose your attorneys carefully to make sure you trust their intentions for you and know that they will have your best interests at heart.”
If you are in doubt it may be beneficial for you to notify others of the registration of your LPA and this will mean that somebody else knows that an attorney has been appointed and may help to ensure they take the best care of you.
If you already have an Enduring Power of Attorney in place (prepared pre-2007), this will still be valid but an LPA offers more flexibility overall.
We believe the LPA is an important part of your financial planning and will help you protect your assets and your estate whilst you are still living, it will ensure you appoint people to take good care of you should you become unwell or need help.
If you would like to discuss making a Lasting Power of Attorney please do get in touch.
FUSE is an independent Chartered Certified firm of accountants and tax advisors based in Highgate Village, North London. We provide a dynamic range of services to clients working in property, media, entertainment and professional services. Our clients vary in size from self employed sole traders, small enterprises and medium size businesses. We believe that comprehensive financial planning and sound business financial advice are the keys to growth and profitability.
