Lasting power of attorney is a term that many people are unfamiliar with until they are in a situation that requires them. While they can seem like complex issues, lasting powers of attorney are an integral part of many probate proceedings. This blog will set the record straight regarding lasting powers of attorney, busting the myths and stating the facts.
Lasting Power of Attorney – The Facts
There are two types of LPA. These are:
LPA for Health and Welfare decisions – allows the attorney to consent to medical care and treatment on behalf of the donor and make health and welfare decisions for them.
LPA for Property and Financial affairs – allows the attorney to manage the donor’s assets, including finances and property.
Next of Kin Do Not Hold Legal Weight
Many people feel comfortable letting next of kin deal with everything if they are unable to. However, next of kin is not a legal thing and therefore does not mean they automatically have the authorisation to deal with health and financial issues. This is why an LPA is needed.
Don’t Wait Until You Need an LPA
Some people wrongly assume they can appoint an LPA once they lose capacity. The LPA must be appointed whilst you have mental capacity; otherwise, you are not deemed legally fit to make that decision. This means your family will have to go through the courts to apply, which can be lengthy and costly.
What About Joint Accounts?
If you have money in a joint account with a spouse, you may wonder if you can still access it if one of you loses capacity. If a bank is aware that an account holder has lost capacity, they may freeze the account. An LPA must be appointed to ensure this does not happen and that money can still legally be accessed.
I Don’t Need to Worry About Mental Capacity in my 30s or 40s
This statement is likely true – we certainly all hope so. However, we never know what is around the corner, particularly if you have a dangerous job, hobby or sport preference. Accidents and illnesses can, unfortunately, strike at any time, leaving you in need of an LPA.
Final Thoughts
The facts above are just some of the common questions and misconceptions about LPAs. Every situation will differ slightly, and it can be an emotionally challenging and overwhelming time. This is why it is always best to plan ahead and cover every eventuality.
If you want help with estate planning, you should contact a professional, such as Intestacy Rules.