Why Setting Up a Lasting Power of Attorney is Essential for Your Estate Plan
When it comes to estate planning, setting up a Lasting Power of Attorney (LPA) might not be at the top of your list. However, it's a crucial component that ensures your affairs are managed according to your wishes if you're unable to make decisions yourself. At PJH, we want to highlight why an LPA is so important and provide examples of scenarios with and without one.
What is a Lasting Power
of Attorney?
A Lasting Power of Attorney is a legal document that lets you appoint someone (an attorney) to make decisions on your behalf if you’re unable to do so.
There are two types of LPAs: one for Property and Financial Affairs, and another for Health and Welfare. These documents come into play if you lose mental capacity, ensuring that trusted individuals handle your affairs according to your preferences.
Why Set Up an LPA?
An LPA provides peace of mind, knowing that your finances, health, and welfare will be managed by someone you trust. It also prevents potential disputes among family members and ensures continuity in handling your personal and financial matters.
What Happens Without
an LPA?
Without an LPA, if you become mentally incapacitated, your loved ones would need to apply to the Court of Protection to manage your affairs. This process can be time-consuming, stressful, and expensive. Here are some examples of what can happen:
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Financial Chaos: Without an LPA, no one can legally access your bank accounts or manage your finances. Bills may go unpaid, investments may be left unmanaged, and your property could fall into disrepair.
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Healthcare Dilemmas: Important health decisions may be delayed. Your family could be left without a clear direction on your treatment preferences, leading to potential disagreements.
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Residential Conflicts: If you need to move into a care home, the decision could be delayed without someone authorised to act on your behalf, impacting your well-being.
The Difference with an LPA
With an LPA, these issues are significantly mitigated:
Financial Security: Your attorney can manage your finances, ensuring that bills are paid, investments are overseen, and property is maintained.
Health Assurance: Your appointed attorney can make health decisions that align with your preferences, providing clear guidance and reducing family stress.
Care Decisions: An LPA allows your attorney to make timely decisions about your living arrangements, ensuring you receive the care you need without unnecessary delays.
PJH's Commitment to Your Peace of Mind
At PJH, we understand that planning for the future can be daunting. Our team is dedicated to providing clear, comprehensive guidance to ensure your wishes are respected.
We offer tailored advice to help you choose the right type of LPA for your needs and assist with the entire process, from selecting your attorneys to completing and registering the forms.
Conclusion
Setting up a Lasting Power of Attorney is a vital step in securing your future and safeguarding your interests.
At PJH, we are committed to helping you navigate this important decision with confidence and ease. For more detailed information or personalized advice, please get in touch with our expert team at PJH.
