Lasting Powers of Attorney – when is the right time?
18th Aug 2022
Kate Garraway is a well known journalist and broadcaster in her 50s. Her husband sadly caught Covid at the start of the pandemic and the family have had many difficult issues to cope with over the past few years. These have been documented in some moving TV broadcasts.
One of the difficult issues encountered by Kate was the ability to access Derek’s finances. Kate faced a lot of struggles in doing the things she thought were the simplest. She could not access the bank accounts in Derek’s name, she was not able to refinance their mortgage and she even ended up having to pay £900 for new phones.
Kate was left helpless and had to resort in borrowing money from friends – a situation not all of us want to be in. Kate has echoed her concerns about her difficult time since Derek has been unwell, and that LPAs are one of the most important documents you can have in place.
This has brought to light the issue around Lasting Powers of Attorney and when is the right time to put them in place.
Lots of clients discuss Lasting Powers of Attorney with us but think they are too young or will get around to it if they start “losing their marbles”. No one likes thinking of the worst-case scenario. It is put off until tomorrow, but tomorrow never comes. Before you know it, you are in a position where you cannot manage your own affairs, and your loved ones are unable to help you.
The statistics show that 1 million people in the UK will have dementia by 2025 and every 90 seconds someone in the UK is admitted to hospital with an acquired brain injury.
So, what is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document where you appoint one or more people, known as “attorneys” to manage your affairs. There are two types of LPA’s, which are Property and Financial Affairs and Health and Welfare.
Property and Financial Affairs LPA allows an Attorney to manage your finances. This can vary from speaking to utility providers, paying for your bills, and helping with investing money. A Property and Financial Affairs LPA can be registered and used straight away, even when you do have capacity. This is useful for situations where you are away on holiday or are physically unable to do so, and your Attorneys can manage your finances.
Health and Welfare LPA allows an Attorney to make healthcare decisions on your behalf. This can vary from your day-to-day standard of living, to where you live (if a care home is needed), and medical treatment. A Health and Welfare LPA can be registered but can only be used when you have capacity.
Having an LPA does not mean that you lose the ability to manage your own affairs. In fact, it’s quite the opposite. You have the power to appoint your own Attorneys and can choose someone who you can really trust.
If you would like further advice on LPAs or advice on registering LPAs we have several people that can assist you here at McHale & Co to get started please call and ask for Philippa Wright on 0161 928 3848 or email at mch@mchaleandco.co.uk.
