Should you be unable to make your own decisions, creating a Lasting Power of Attorney (LPA) enables individuals to make choices on your behalf. Not putting one in place is a major risk to your estate as it would be out of your hands and lose you control.
An LPA is a legally binding document lets you appoint people to help make decisions should you be unable to. They can be friends, family or even a solicitor but they must be people you trust and who will carry out your wishes.
LPAs are very important because it allows you to plan effectively for the future, have control over your own estate and entrust people to support your decisions and look after your affairs.
However, not everyone has one and this can lead to complications down the line which could mean your wishes are not met and decisions are out of your hands.
Given their importance, you should be considering creating at least one or both types of LPAs that are available. One for health and welfare and one for property and financial affairs.
A health and welfare LPA gives your attorneys the power to make decisions about various aspects of your health and living conditions should you be unable to.
Your attorneys can discuss your daily routine and quality of life, this includes washing, dressing, eating. They can also decide if residential care is required and help you live more comfortably.
In addition to this, your attorneys can also discuss your medical care and decide the best course of treatment or care should you been unable to. Should it also get to a stage where recovery from an accident or illness is slim, they can discuss life-sustaining treatment and decide on your behalf.
The other LPA that you can create focuses on your property and finances. This form of LPA gives your attorneys the ability to look after and manage your bank or building society accounts, pay your bills, collect pensions or benefits and sell your home if necessary.
You can make both types of LPAs, and these will be legally binding documents that must be followed to the letter.
Over 8 million people in the UK have set up an LPA but that is also a small percentage of the population. You have the right to express legally how you want decisions to be made if you cannot make them.
There are plenty of risks should you not have one in place including loss of control, financial implications and family divides.
Not having an LPA in place means you lose the ability to choose who will handle your health, finances and property should you not be able to make decisions yourself.
In addition to this, there are major financial implications including frozen assets like bank accounts and delayed access to funds.
Because there is no LPA in place, this makes it harder for banks to release funds, and they need to follow their own compliance protocols and procedures.
Not having an LPA in place adds increased pressure on your family and relatives because they would have to make the decisions for you. Each family member may have different options or are unsure about your wishes.
This will make the process much more stressful and emotional which is why it is so important you have an LPA in place because it clearly demonstrates your wishes and takes that pressure away.
Creating an LPA is so important because it ensures your wishes are followed and carried out by people you trust and value, giving you much needed peace of mind in what can be challenging circumstances.
Having this in place also prevents potential legal issues and disputes because your LPA is legally binding and must be followed and respected by law.
The LPAs, depending on if you choose to make one or both, protect your health and welfare as well as your finances and properties.
They also take the pressure away from your family, giving everyone involved peace of mind, knowing there are contingency plans in place.
Having an LPA is far greater than the risks of not having one, so you should consider creating an LPA to protect your estate and ensure your wishes are fulfilled.
Speak to legal experts who understand the estate planning process. They can give you the right support and help you start the process of putting your affairs in order and help you create your LPA to give you and your family peace of mind.
Don’t run risks with your estate, contact us today to start creating your LPA.
