Giving someone else the power to deal with your affairs usually becomes a consideration when a person is getting older or their mental or physical abilities are declining. In these circumstances a Lasting Power of Attorney (‘LPA’) may be put in place provided the person giving the power (the donor) understands the purpose of the LPA and the scope of the authority conferred by it.
However accidents can happen at any time to anyone and without an LPA your family may be unable to deal with your property and access your finances. This may have a devastating financial impact on your family at a difficult and emotional time for them by creating an Lasting power of Attorney in advance ensures that if the worst were to happen, you can rest assured that both your financial affairs and personal welfare are in safe hands.
If you do not have an EPA or LPA and you cease to be able to manage your affairs it is probable that an application for the appointment of a Deputy to look after your affairs will need to be made to the Court of Protection. This is usually a slow and expensive option.
LPA for Property and Financial Affairs
A Lasting Power of Attorney for Property and Financial Affairs gives authority to the appointed Attorney to handle property and financial matters for the Donor.
The powers extend to all matters concerning the Donor's finances: this could include selling property belonging to the Donor, (including the Donors home), buying property in the Donor's name, managing bank accounts and investments, continue to run their business and make decisions about the Donor's healthcare and payment for this care.
LPA for Health & Welfare
Lasting Power of Attorney for Health & Welfare covers decisions relating to your social and healthcare needs which can include where the Donor lives, how they are cared for and what healthcare they receive, for example the decision to send the Donor to a nursing home.
Will Writing and estate planning is not regulated by the Financial Conduct Authority.