Lasting powers of attorney
Today more people than ever are taking the trouble to make will, to ensure that after their death, their affairs are settled according to their wishes, and with the minimum upset and fuss.
Far fewer people think to make similar provision to organise their affairs should they become unable to look after themselves during their lifetime, due to illness, accident or old age an ever increasing possibility given advances in medicine.
What is an LPA?
The purpose of an LPA is to enable a person whilst mentally capable, to decide whom they would like to deal with their financial affairs for them should they ever become unable to do it for themselves. The people you appoint are known as attorneys.
If you have investments, property, money or other assets in you your name or certain jointly owned assets and become unable to look after them yourself, your spouse does not have the automatic right to deal with your affairs.
A husband or wife can appoint each other to be their attorney. If one of them becomes incapable the other has the authority to organise their affairs for their mutual benefit. A parent could appoint his children if they are over 18 and make sure that they can only act together (jointly).
What if I don't have an LPA?
When someone becomes incapable and has not appointed an attorney, the Court of Protection will appoint a receiver to look after their affairs. This takes time, during which important matters cannot be settled. This can involve legal bills and will incur court fees.