A Lasting Power of Attorney (LPA) is a crucial legal document that enables a nominated individual to manage your affairs should you lose capacity, whether physically or mentally. It ensures that your financial and personal decisions are handled by someone you trust, providing peace of mind for you and your family. There are two types: one covering property and financial affairs, and another focused on health and welfare. An LPA prevents delays and complications in decision-making if you become incapacitated, making it a vital part of future planning. Without one, loved ones may face difficult legal hurdles. Despite their importance, many people hold misconceptions about LPAs.
1. “My family will take care of everything.”
Even if you're married or in a civil partnership, without an LPA, your loved ones have no automatic right to manage your finances. A partner or family member cannot access your bank accounts or make financial decisions unless appointed under an LPA. This lack of authority can result in significant complications.
2. “Joint assets mean I don’t need a LPA.”
Surprisingly, joint accounts don’t exempt you from needing an LPA. If one account holder loses capacity, the account can be frozen, limiting access to funds until an LPA is in place.
3. “My next of kin can make health decisions for me.”
Being a next of kin doesn’t give legal rights over medical decisions. Health professionals, without an LPA, are obligated to make decisions based on their assessment of your best interests, which may not reflect your wishes or those of your family.
4. “I have a Will, so I don’t need an LPA.”
A Will takes effect upon death, while an LPA is for managing your affairs during your lifetime. LPAs empower your chosen attorney to make decisions about your well-being and finances when you're unable to do so.
5. “LPAs are only for the elderly.”
Incapacity can occur at any age due to accidents or medical conditions. By having an LPA in place early, you prevent unnecessary complications should the unexpected happen.
Why Plan Ahead - Make your Lasting Powers of Attorney today
Failing to establish an LPA can result in loved ones needing to apply for a deputyship through the Court of Protection, a lengthy and costly process. By creating an LPA while you have the capacity, you ensure that someone you trust can make decisions on your behalf efficiently, avoiding the challenges of deputyship.
Need help setting up an LPA? Contact us at Toucan Law today to ensure your affairs are in order.
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