We don’t like to think too much about getting older, but sometimes it is very wise to consider what may happen if you are no longer able to make decisions for yourself.
In the case of finances and how they would be managed if you were somehow incapable, who would do this for you? Our Wills and Probate team answers some common questions about the financial side of Lasting Powers of Attorney.
What is an LPA for Property and Financial Affairs?
A Lasting Power of Attorney (LPA) for Property and Financial Affairs is a formal legal document, drafted up to allow an appointed family member or trusted individual (called an Attorney) to make, or assist in the making, of property and financial decisions of the donor (the individual the LPA concerns).
This is not to be confused with a Health and Welfare Power of Attorney, which is a separate LPA.
Why might I decide to make one?
There are a few reasons why you may consider setting your LPA in place. You may simply be doing it for peace of mind, should the worst happen, at any time during your adult life. Otherwise, it may be because of a medical diagnosis, or the slow deterioration of an existing condition
When does an LPA come into effect?
A Lasting Power of Attorney comes into effect once the Donor has been deemed to lack capacity. Otherwise, if the LPA permits it, and with the permission of the Donor – an Attorney can take over a Donor’s affairs. Both the LPA and Donor must permit this in order for this to happen.
Does an Attorney keep this power once it has been handed over?
If ever the Donor regains capacity, such as after surgery or an improvement of some kind of condition, the power of decision making would return to them. Additionally, if it is ever revealed that decisions are being made in favour of the Attorney over the Donor, it would be legally necessary for monies to be paid back to the Donor.
What aspects of my situation can a Property and Financial Affairs Attorney handle on my behalf?
- Money, tax and bills
- Bank and building society accounts
- Property and investments
- Pensions and benefits
Do I need the permission of the person or people I nominate as my potential Attorney(s)?
Yes you do. Express agreement is required to sign an Attorney up, and they must offer their signature to confirm that they wish to proceed as your Attorney should the need arise. They will receive their own documentation through the post which gives more details about potential future appointment.
Do I need a Solicitor to put an LPA together?
Considering that it is a legal document, surprisingly it is not necessary to have a Solicitor to draft a Lasting Power of Attorney. This may be ideal for someone with the time and understanding to do so, or with relatively straightforward affairs, as well as in an attempt to save money.
For less straightforward matters, anyone who lacks the confidence to do so, or simply wishes to have the legal backup of a Solicitor – we would recommend seeking legal assistance if only to take the stress out of the process.
Further reading
Lasting Powers of Attorney (LPA) – Oakwood Solicitors
Manage a Lasting Power of Attorney – GOV
WHAT TO DO NEXT
Contact Oakwood Solicitors for professional assistance and peace of mind when dealing with your Power of Attorney matters.
Choose one of the methods on the right-hand side of this page, or call us on 0113 200 9720 to find out how we can help you.
Christina Taylor joined Oakwood in October 2023 as Deputy Head of the Wills and Probate Department.
Christina has over 20 years’ experience in her previous firm and qualified as a Specialist Para…
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