Why You Need Lasting Powers of Attorney, Whatever Your Age

13 February, 2025 4 minutes reading time

It’s easy to think serious illnesses or accidents only happen to others. But unexpected events can occur at any age, potentially leaving us unable to make decisions for ourselves. This is where Lasting Powers of Attorney (LPAs) become essential, and everyone, regardless of age, should consider them.

LPAs aren’t just for older individuals; impairment can occur unexpectedly. A sudden illness or serious accident can leave someone temporarily or permanently unable to manage their affairs. Planning ahead with an LPA safeguards your interests and those of your loved ones. 

Understanding the Two Types of LPA

A Lasting Power of Attorney is a legal document allowing you to appoint someone you trust (your “attorney”) to make decisions on your behalf if you cannot do so yourself.  Crucially, there are two types of LPA, and it’s essential to understand the difference:

1. Property and Financial Affairs LPA. This type of LPA allows your attorney to make decisions about your finances and property, such as paying bills, managing your bank accounts, selling your house, or handling your investments. With your permission, this LPA can be used even while you still have capacity.

2. Health and Welfare LPA. This LPA allows your attorney to decide about your health and welfare, such as consenting to or refusing medical treatment, deciding where you should live, and making choices about your daily care. This LPA can only be used once you have lost capacity. 

Why LPAs are Essential

Unexpected Financial Burden: If you are hospitalised and unable to manage your finances, your partner might lack the legal right to access your accounts, leading to missed payments and debts. A Property & Financial Affairs LPA would prevent this. 

Risks for Business Owners: A business owner’s incapacity could halt operations. A Property & Financial Affairs LPA allows appointed attorneys to manage the business seamlessly. 

Temporary Incapacity After an Accident: If unresponsive due to an accident, your partner may not have legal rights to make health decisions without a Health and Welfare LPA. This could delay crucial treatment or prevent your wishes from being followed.

Mental Health Crisis: A sudden, severe mental health crisis can leave someone unable to make decisions. A Health and Welfare LPA ensures a trusted individual can advocate for appropriate support and treatment. 

Terminal Illness and End-of-Life Care: LPAs, particularly a Health and Welfare LPA, help ensure your end-of-life wishes are respected, relieving emotional burdens on your family.

The Pitfalls of DIY LPAs

While creating LPAs yourself might seem cost-effective, legal technicalities can lead to invalid documents due to incorrect witnessing or other common mistakes. Therefore, it’s essential to approach this process carefully.

The Cost of LPAs vs. The Cost of Not Having Them

While there is a cost associated with setting up LPAs, it’s essential to consider the potential costs of not having them.  If you lose capacity without an LPA, your loved ones may have to apply to the Court of Protection for a Deputyship order. This process can be lengthy, expensive, and stressful.  It can also mean that decisions about your care and finances are made by someone you wouldn’t have chosen.  In contrast, the cost of setting up LPAs is a relatively small investment in your future security and peace of mind.  They are arguably even more important than a Will, as they deal with your lifetime rather than just your death.

Benefits of Professional Legal Advice

Lawyers specialising in LPAs can guide you through the process, ensuring the document is legally sound and reflects your wishes. They can:

1. Explain the different types of LPAs and help you choose the right one for your circumstances.
2. Advise on appointing attorneys and discuss the implications and responsibilities
3. Minimise the risk of errors and future disputes by drafting the LPAs correctly.
4. Ensure proper witnessing and registration. 

Our Advice

Planning for the future can feel daunting, but it’s one of the most loving and responsible things you can do for yourself and your family.  We’re here to help. Contact us for a consultation to discuss your needs, or check online for an instant quotation. It’s an investment in your peace of mind and the well-being of those you care about.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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