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Thinking and talking about what would happen if you are no longer able to or no longer want to make your own decisions can be uncomfortable. We understand that this is a difficult time for you and your family. However, it’s important to consider how challenging the situation could become if you suffered from a stroke, serious accident or dementia without sorting things first.
At Key, we can help you and your family make sure all your affairs are in order.
If you’re wondering “What does power of attorney mean?”, we can explain. A lasting power of attorney (LPA) is a legal document which gives the person(s) of your choice the power to deal with your affairs. These trusted people will become your legally appointed attorney(s) and will be able to use these documents to act on your behalf whenever necessary.
LPAs are important in the event that you may not be able to express how you want your financial affairs and/or health and welfare to be taken care of. An LPA allows you to choose a person(s) to make these decisions on your behalf and in your best interests.
There are a number of reasons why you may want or need someone to make decisions or act on your behalf. Perhaps it’s only a temporary situation while you’re in hospital and need help with everyday tasks such as paying household bills. Or it could be because you need to make a longer-term plan. If, for example, you’ve been diagnosed with dementia or Alzheimer’s and you may lose the mental capacity to make your own decisions in the future.
Mental capacity is the ability to make or communicate specific decisions at the time they need to be made. To have mental capacity you must fully understand the decision you need to make, why you need to make it and the likely outcome of what you decide.
It’s important to remember that needing more time to understand or communicate your decision doesn’t mean you lack mental capacity. For example, if someone has dementia, it doesn’t necessarily mean they’re unable to make any decisions for themselves. If, for whatever reason, someone is having difficulty communicating their decision, attempts should always be made to overcome these difficulties to help the person decide for themselves where possible.
If they can’t, this is where a lasting power of attorney would step in to make sure their wishes are made clear.
Many people believe that family members or partners will be able to automatically make decisions on their behalf when they are no longer able to do so themselves. Contrary to popular belief, married or co-habiting couples are not automatically able to legally deal with each other’s affairs. Taking out a lasting power of attorney and appointing your partner ensures they have the authority to act on your behalf should you require it.
Legally, being married or co-habiting doesn’t afford you the right to:
Access any bank accounts
Speak to pension providers or credit card companies
Query bills with utility companies
Without having a valid LPA in place naming your partner as your nominated attorney, they may find themselves powerless to help you.
Speak to the team at Key today to see how we can help you and your family with any will or lasting power of attorney needs.
In England and Wales, there are two types of LPAs which deal with entirely different aspects of your life: Property and Financial Affairs, and Health and Welfare. You can choose to have both or just one on its own.
Giving a trusted person power of attorney over your health and welfare does not mean they will automatically gain control over your financial affairs and vice versa.
| Feature | Property and Finance | Health and Welfare |
|---|---|---|
| Act on your behalf | ||
| Deal with bank accounts | ||
| Deal with bank accounts | ||
| Sign paperwork related to equity release | ||
| Sign paperwork related to equity release | ||
| Deal with utility bills | ||
| Deal with solicitors | ||
| Discuss medical issues with your doctors | ||
| Make decisions about healthcare | ||
| Deal with social services |
An LPA for financial decisions can cover things such as:
Buying and selling property
Paying your mortgage
Investing money
Paying bills
Arranging any repairs to your property
Your attorney must keep accounts of any financial decisions and ensure their money is kept separate from yours. You have the right to ask for regular details of how much is spent and how much money you have.
An LPA for health and welfare decisions can cover things such as:
Where you should live
Your medical care
What you should eat
Who you should have contact with
What kind of social activities you should take part in
You can also give special permission for your attorney to make decisions about life-saving treatment.
There’s one key difference between the two. An ordinary power of attorney is only valid while you have the mental capacity to make your own decisions. Whereas if you want someone to be able to act on your behalf, if there comes a time when you don’t have the mental capacity to make your own decisions, you should set up a lasting power of attorney.
You’ll need to register your lasting power of attorney before you’re able to use it. In England and Wales, the registration fee is £82 for each of your LPAs. This means it will cost £164 if you’re looking to register an LPA for both property and financial affairs and for health and welfare.
You may be exempt from paying the fee or be offered a reduced fee if you’re on a low income or receive certain benefits, so it’s always important to check.
If you choose to instruct a solicitor to act on your behalf or to oversee any paperwork and legal documents, you’ll also have to pay legal fees.
If, for whatever reason, you lose the capacity to make your own decisions and don’t have a lasting power of attorney in place, someone will need to apply to the Court of Protection on your behalf.
The court can then:
Decide whether or not you have the mental capacity to make a decision
Make an order relating to the health and care or property and financial decisions of someone who lacks mental capacity
Appoint a deputy to make decisions on behalf of someone who lacks mental capacity