Close family or friends are not automatically able to make decisions on your behalf – even if you need them to. If you lose the ability to make certain decisions, a Lasting Power of Attorney (LPA) allows your chosen attorney/s to step in.
An LPA allows you to choose who can make decisions for you, what decisions they have authority to make, and when – and not just about your money. There are two types of LPA, which cover your property and financial affairs, or your health and welfare.
How could a lasting power of attorney help me?
A LPA can be of great relief to your family, giving them the peace of mind that your affairs are being handled as you would want. Just like intestacy, without an LPA there are a set of default rules which will be followed – but these may not align with your wishes, and can be slow, expensive and impersonal.
Making a LPA isn’t just about getting older, or protecting yourself against terminal illnesses. You can use an LPA if:
- you need someone to act for you for a temporary period, such an when you’re on holiday or in hospital
- you’re finding your accounts difficult to understand or cannot access banking services
You must set up Power of Attorney while you have mental capacity. Once you’ve lost capacity, it’s too late.
How will your plan help you achieve your financial goals?
Your adviser can create a bespoke financial plan, based on your goals for later life, analysis of your finances and the rules and allowances which will apply to you. Your adviser will present their recommendation to you – which may include a selection of legal and financial products, such as inheritance tax planning, Wills, lifetime trusts and lasting power of attorney.