Lasting Powers of Attorney: Because “Wing It and Hope” Is Not an Estate Plan
Most people know they should make a Will. However, fewer people know they should also make Lasting Powers of Attorney (often referred to as LPAs), ideally before life changes and whilst you have the mental capacity to make the necessary choices.
An LPA is a legal document that lets you appoint trusted people, referred to as your attorneys, to make decisions for you if you cannot make them yourself. In England and Wales, there are two types:
1) Property and Financial Affairs LPA
This allows your attorneys to deal with money, bank accounts, bills, pensions, investments, and property. In other words, all the practical financial things that do not politely pause just because someone has lost capacity.
2) Health and Welfare LPA
This allows your attorneys to make decisions about medical treatment, care arrangements, daily routine, and where you live, but only if you lack capacity to make those decisions yourself.
Without LPAs, your loved ones may discover the harsh truth that despite being your spouse, civil partner, or person who might know all your essential information and wishes, they do not automatically have the legal authority to act for you when you need them to.
If you lose mental capacity without a Property and Financial Affairs LPA, nobody can simply walk into the bank and say, “It is fine, I am family.” Direct debits continue. Bills arrive. Care fees may need paying. Property may need managing. Meanwhile, everyone is stuck in an administrative swamp wearing shoes entirely unsuitable for the terrain.
The alternative is usually an application to the Court of Protection for a deputyship order. This can be slower, more expensive, and more cumbersome than having an LPA in place. It may also involve ongoing supervision and reporting. Think of it as doing life admin on hard mode, with extra forms.
Without a Health and Welfare LPA, decisions about care or medical treatment may be made by professionals applying best-interests principles. That can work perfectly well, but it may not reflect the views of the people you would personally trust most. Your family may be consulted, but consultation is not the same as legal decision-making authority. There is a significant difference between “we will take your views into account” and “you have the power to decide.”
LPAs are not just for older people. Accidents, illness, strokes, brain injuries, and unexpected diagnoses do not check your diary first. Capacity can be lost suddenly, temporarily, or gradually. An LPA is therefore not pessimism; it is prudent housekeeping.
Making LPAs also allows you to choose who acts, how they act, and whether they make decisions jointly, jointly and severally, or with guidance from you. Without one, the choice may be delayed, disputed, or made under pressure.
So make both LPAs while you can. Because if life ever gets complicated, your loved ones will be thankful that this will make things easier.
If you are interested in creating a Power of Attorney, please do not hesitate to contact us to provide specialist advice and offer a free initial consultation.
Article by John Fawcett from our Private Client team
☎️ 01937 547000
