Who do you want to control your assets?

Almost everyone understands the importance of making a will to set out what should happen to their property after their deaths but the usefulness of making a Lasting Power of Attorney (LPA) has been overlooked by many.

An LPA is a legal document by which an individual appoints another person, or a group of people, to act on their behalf in relation to their financial affairs, personal welfare, or both.

The person appointed is called the attorney and is duty-bound to act in the best interests of the individual who makes the LPA. However, it is a powerful document, and additional protection for the individual making the LPA is provided by the fact it must be registered at the Office of the Public Guardian before it can be used.

Victoria Spratt, a solicitor in Hewitsons’ Private Client team, said: “Frequently I’m asked by clients in their early 40s and 50s if it’s not too early to be making an LPA but my response is always that it is never too early.

“LPAs are designed to help families when an individual loses mental capacity. If something happens which results in a loss of capacity, the family of the individual concerned often have enough to worry about, without also having to deal with an application to the Court of Protection to allow them to access the individual’s bank accounts, deal with bills and make decisions about medical treatment, which is the only alternative if an LPA has not been made.

“In addition, it’s worth noting an LPA cannot be made once mental capacity is lost, so it’s best to act early and put one in place long before any issues with mental capacity arise.”

LPAs replaced Enduring Powers of Attorney on October 1^st 2007. Although Enduring Powers of Attorney can no longer be made existing Enduring Powers of Attorney completed before October 1^st 2007 are still valid and can be used.

If you would like to discuss making an LPA please contact Victoria Spratt on 01604 233233 or look at the firm’s Guidance Note here.