A Lasting Power of Attorney, don’t roll the dice

26th October 2012

As part of our Financial Planning process, we recommend that all clients have a current Will to ensure that their assets are passed to whom they intend, in the event of their death. Whenever a Will is arranged, consideration should also be given to setting-up a Lasting Power of Attorney (‘LPA’). This is an arrangement designed to protect you, should you become incapable of looking after your own affairs as a result of illness or injury.

Lasting Power of Attorney

If you have gone to the trouble of making or updating your Will, why leave anything to chance?

If you are deemed mentally incapable and have not previously appointed an Attorney, no one can administer your affairs without having first applied to the Court of Protection, either in person or through a solicitor, to be appointed to the role of ‘Deputy’. This can be expensive, not to mention time-consuming. The Deputy might even be required to submit annual reports detailing the decisions they have made.

The Court will look into the suitability of the applicant and may decide that a different person should be appointed if the financial, employment status, or creditworthiness of the applicant raises a concern.

Are there different types of LPAs?

Yes. There are two types: those related to an individuals’ property and financial affairs, and those related to their health and welfare.

Attorneys in the first category can make decisions on behalf of the donor as soon as the LPA is registered, regardless of whether the donor has lost mental capacity.

Attorneys in the second category can only act when the donor lacks the mental capacity to take the decision in question, for example in relation to medical treatment. The donor could also confer power to give or refuse consent to life sustaining treatment

If you would like to understand more about LPAs or seek advice related to your own personal circumstances, please contact a member of the Fortitude Financial Planning team.

This educational blog post was created by Tim Davison, Financial Planner.