5 reasons to set up a Lasting Power of Attorney.  There are two types of LPA (Lasting Power of Attorney) :-

• • ‘Property and Financial Affairs’ and ‘Health and Welfare’

5 Reasons to Set Up a Lasting Power of Attorney (LPA)

1. Peace of mind: 

With a Lasting Power of Attorney (LPA) in place you are assured that your affairs will be taken care of by someone you trust.  Particularly, if you are unable to make decisions for yourself.

2. You can control who makes the decisions 

By setting up an LPA, you can choose who will make decisions if you are unable to do so.  You can choose anyone you trust as your Attorney, such as a family member or close friend.  However, they need to be over 18, not bankrupt and willing to take on the role.  You can also provide instructions for your Attorney and any preferences you would wish to be taken account of.  For example, you might include specific instances which would trigger the need to get expert advice.

3. Costly legal proceedings are avoided

What would happen if you become mentally incapacitated and you do not have an LPA in place?  Critically, your loved ones may have to go through a costly and time-consuming court process to appoint someone to make decisions of your behalf.  Notably, there are also annual supervision costs charged by the Court of Protection.  These costs do not apply for Attorneys.  So an LPA is significantly cheaper than a Deputyship.  It costs £82 to register an LPA, whereas the court fee alone for making a single Deputyship application is £385.  Additionally, once a Deputy is appointed, there are annual supervision fees of circa £325.

2 more Reasons to Set Up a Lasting Power of Attorney (LPA)

4. Protecting your Assets

Furthermore, with an LPA in place, your Attorney can make decisions about your finances.  Chiefly, helping to manage and protect your assets as well as ensuring this is in your best interest.  For example,  many people now use some form of drawdown arrangement to take income from their pension.  This can require decisions to be made in respect of both the withdrawals and the underlying investments.  Besides, this won’t be possible if you have lost capacity and don’t have an Attorney in place.  Attorneys are expected to keep proper records (accounts, receipts, invoices etc).  So you might want to bear this in mind, when selecting your Attorney.

5. LPAs are flexible

Finally, your circumstances and needs may change over time.  For instance, if one of your Attorneys were to pass away or become ill, you may need to choose another person to take on this role. However, you can update your LPA whenever you need to.  So you can be sure that the document is always relevant and effective in case it ever needs to be implemented.

5 Reasons to set up a Lasting Power of Attorney.  Contact us today on 01603-957599.