Why create a Lasting Power of Attorney?

The topic of Lasting Power of Attorney (LPA) can be confusing. LPA is a legal document where you can appoint one or more chosen individuals (the attorneys) to act and make decisions on your behalf in the event that you are unable to do so on your own due to physical or mental incapacity. Having a LPA set up is way of protecting loved ones at a vulnerable time by ensuring someone trusted can oversee important decisions.

IN THE UK, THERE ARE TWO DISTINCT TYPES OF LPAS:

Health & Welfare LPA:

This allows your designated attorney to make decisions about your health and well being, such as medical treatment, day to day care and how this is provided.

Property and Financial Affairs LPA:

This allows your designated attorney to organise and manage your financial and property affairs, enabling them to pay bills, manage investments or sell property on your behalf or work with a financial adviser to do so.

Why do I need one at all?

1. Be prepared for the unexpected

Having a LPA in place means that you know that your wishes will be respected in the event you cannot make decisions due to an accident, illness or any other reason. By setting up a LPA, you know that someone you trust will be able to act in your best interest.

2. Take control

The process of setting up a LPA means you are in control of choosing who will be responsible for helping you in the event you cannot do something yourself. This is preferable to the authorities or a stranger taking control.

3. Ensure a trusted person can help you

With your trusted person in place, you know that they will act in your best interest.

4. Avoid delays

A LPA can be useful to guarantee that bills are paid or financial matters can be attended to immediately, without needing to gain last minute written consent which could be time consuming and stressful.

5. Have peace of mind – reduce stress and anxiety

It is reassuring to know that someone you trust will protect your interests if you do not have the ability to communicate. It’s important to note that LPAs must be created whilst you have the mental capacity to make decisions for yourself.

For a second opinion, or a fresh look at your finances, give Holland Hahn & Wills a call. An initial chat is free, with no obligation and could save you a lot of worry. 020 8943 9229 | enquiry@hhw-uk.com | hhw-uk.com

This article is for information purposes and should not be treated as advice. Individual circumstances should always be considered prior to purchasing any financial products. Investing involves risk – the value of investments and income from them may fall as well as rise and is not guaranteed.