What would you do if you woke up one day and lost the ability to make decisions? Who would you trust to make important decisions on your behalf? Who would you want to manage your finances and health decisions? We all have people in our lives who we trust would make the best decisions in our best interest. However, it’s not as simple as it sounds. Many people have a Lasting Power of Attorney (LPA) in place, but for those who don’t, the consequences could be detrimental.
The Hidden Risks of Not Setting up an LPA.
Most people don’t think “if I lost mental capacity, who would have the legal authority to make decisions on my behalf?” Most of us don’t consider the detrimental consequences of not planning ahead in the event of a worst-case scenario. The majority of people plan; they plan their funeral, organise their will, and dream about their retirement. However, ask people if they have an LPA in place, and most would ask: “What’s an LPA”?
To put it simply: an LPA is a legal document that gives someone you trust the legal authority to make decisions on your behalf, specifically relating to your financial and health affairs. For example, if you need help paying your bills or arranging an important matter with the bank, you can give someone you trust (an attorney) the authority to manage your affairs on your behalf by creating an LPA. However, if you don’t have an LPA in place, you will face difficulties in managing your affairs.
Most people assume that their next of kin or loved ones will have automatic rights to make decisions on their behalf or look after their assets if they were to lose mental capacity. However, if you lose mental capacity, the absence of an LPA means that you have to go through the Court of Protection, which is both time and money consuming. For your loved ones to make decisions on your behalf, they would have to apply to the Court of Protection to become a “deputy”- a legal process that is very long and expensive.
Even more concerning, without an LPA in place, your bank accounts and assets will be frozen, making it impossible for your attorneys to pay your bills and manage your finances. In the case of health decisions, the absence of an LPA will give health professionals the right over your loved ones to make health decisions on your behalf. This means that your loved ones will be stripped of this right simply because there is no LPA in place. This is the case even if you had already informally communicated your wishes to your loved ones. But because of the absence of an LPA, this decision will fall into the hands of the doctors and not your loved ones.
Why Having a Lasting Power of Attorney Is Essential
Creating an LPA is not as complicated and time-consuming as many think. What’s more complicated is not preparing for the worst-case scenario. Having an LPA in place ensures that your loved ones can look after your health and financial needs if the worst happens.
As stated by Martin Lewis “an LPA is arguably more important than a will.” A will ensures that things are alright when you’re gone, while an LPA ensures that things are looked after while you’re still here.
Preparing an LPA in advance gives you and your loved ones peace of mind if the worst happens. An LPA gives your loved ones and the people that you trust the legal authority to make important decisions on your behalf when it really matters. An LPA eliminates doubts and ultimately saves you time, money and stress. Having an LPA gives you more time for what really matters!
For a friendly and affordable LPA service, contact LPA Assist for a free non- obligatory consultation today.
