“Should I be talking to my parents about Powers of Attorney?”

As family members move into later stages of life, thoughts turn to the challenges that might come with old age or ill health.

While conversations around physical or mental limitations may not be the easiest to broach, it’s really important to open up discussions so that the right protections can be put in place in good time. You may be keen to ensure your parents have considered their future needs and that they have up-to-date wills in place, for example. And one very straightforward, but potentially vital, document to consider having is a Lasting Power of Attorney (‘LPA’). 

What does a Lasting Power of Attorney do?

An LPA is a formal, legal document that helps safeguard certain rights and ensures wishes are met. It appoints a nominated person (‘attorney’), or people, to make decisions on your behalf if you become unable to do so. An accident or an illness such as dementia is often a reason to activate an LPA. It enables trusted people to step in and protect the interests of the person who has become incapacitated (the ‘donor’).

What decisions can an attorney make?

There are two types of LPA. The first focuses on health and welfare and enables the attorney to make medical decisions (what treatment the donor should have, for example) and more everyday life decisions, including to do with the donor’s daily routine. It’s important to note that a health and welfare LPA only allows the attorney to make decisions once the donor has lost mental capacity.

The second type of LPA centres around property and finances: paying bills, managing accounts and investments, dealing with pensions, for example. Crucially, the activation of this type of LPA doesn’t necessarily depend on the loss of mental capacity. The donor can specify that their chosen attorney/attorneys may make decisions for them even when mental capacity is still in place – something that can be useful if the donor finds themselves temporarily incapacitated, such as being stuck abroad or hospitalised.

 What happens if there isn’t an LPA?

Family members sometimes assume they will be entitled to take control of situations involving their loved one’s health or finances. However, there is no automatic right to do so. If someone loses mental capacity without having made an LPA, an application for ‘deputyship’ would need to be made to the Court of Protection. Sadly, this isn’t a quick or inexpensive process. And, while becoming a deputy enables a person to manage affairs in a similar way to an attorney, it comes with additional responsibilities.

 Who can make an LPA?

It is certainly wise to talk to elderly loved ones about making an LPA while they still have the mental capacity to do so. But an LPA may be useful to have at all stages of adult life. Their benefit is in providing legal authority for a trusted person to take care of some of the core aspects of life if incapacity strikes, whenever that may be.

Can I cancel my LPA?

Yes, provided you have mental capacity you can cancel your LPA at any time should you wish to do so. The process is fairly easily and allows you the flexibility to revoke your LPA should your circumstances change.

For advice about planning for the future, or specifically about making a Lasting Power of Attorney, contact our team on info@bsandi.co.uk or call us on 01264 353411.