It is a common misconception that if you have a Will in place, you do not need a Lasting Power of Attorney (LPA) or that you can appoint an attorney in a Will.
Wills and LPAs are separate legal documents and have different purposes. A Will deals with who should inherit your assets and only comes into effect on your death. LPAs are for your lifetime, and they end on your death. LPAs allow you to appoint attorneys to deal with your affairs in your lifetime should you become incapable of doing this yourself. You cannot appoint an attorney in your Will.
LPAs are legal documents which allow you to appoint someone you trust to deal with either your financial and property affairs or health and welfare decisions on you behalf should this be necessary or desirable in the future.
There are two types of LPA:
You can appoint one or more persons to be your attorney and you can also appoint replacement attorneys in case the original attorney becomes unable to act.
It is very important to appoint someone you trust to be your attorney. This may be a close family member or friend. If you do not have a family member or friend you can appoint, then for the financial LPA it is possible to appoint a professional such as a solicitor or accountant.
Without a financial LPA in place, no one has legal authority to manage your affairs on your behalf, not even a spouse or civil partner. If you lose mental capacity, your loved ones would need to apply to the Court of Protection for a Deputyship Order. This is a lengthy and costly process and you would not be able to choose who was appointed as the Court would make this decision.
Without a health and welfare LPA in place, if you lost mental capacity then social workers and medical professionals etc would act in what they believe are your best interests but this may not align with what you would want.
As LPAs take several months to complete, it is important to consider putting them in place whilst you are well and healthy and not leave them until they are urgently needed.
If you would like further information about making Lasting Powers of Attorney, please contact our friendly, specialist team on 0191 232 9547 for a no obligation quote or watch this introductory video:
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