Lasting powers of attorney (LPAs) have been in the news recently as the paper-based system is due to be replaced with an online application scheme.
A lasting power of attorney is a legal document that appoints someone to manage your affairs in the event you are no longer able to do so. This might be the case, for example, if you are impacted by a health condition which affects your mental capacity. The LPA means a trusted representative can make decisions affecting your care and your finances on your behalf.
Without an LPA in place, your loved ones will have to apply to the courts to have someone appointed to manage your affairs and in our experience, this can be a very lengthy and costly exercise for your family which could last many months. You may also not get the outcome you may have desired.
There are two types of LPA, health and welfare, and property and finance. You can take out one type or both, to ensure your total personal affairs are covered.
A health and welfare LPA will cover such issues as your daily care, your medical treatment, where you should live and your personal correspondence.
A property and finance LPA will cover paying your bills, managing bank accounts and investments and selling property.
New research from Quilter has shown that last year, 848,896 LPAs were registered, an increase of nearly 20% on the previous. With the new online application service being introduced, it is hoped that many more people will register an LPA.
Approver Quilter Financial Services Limited and Quilter Mortgage Planning Limited 09/02/2024
