A Lasting Power of Attorney (LPA) is a legal document that permits someone to make decisions or act on your behalf. The person you nominate is known as an ‘attorney’. An LPA can come into effect in two circumstances; at a time when you decide you no longer want to make decisions by yourself, or, at a time when you lose the mental capacity to do so.
Sometimes people find themselves in a situation where they either do not want to make their own decisions any more, or they cannot make their own decisions due to loss of mental capacity. In such circumstances, somebody needs to step in and make decisions on behalf of that person, in their best interests.
In these cases, the law doesn’t allow any person to act on behalf of another without completing the necessary legal procedure.
The following are some reasons why you may want someone else to act on your behalf or make decisions for you:
Whether taking the step is a precaution or a necessity, setting up a Power of Attorney is a sensible thing to do as it allows you to have a choice over who will be taking decisions for you in the future.
If you have the ability to communicate and make specific decisions when required, you are defined as having mental capacity. In law, it is said that you have sound mental capacity if you are able to understand why you need to make a decision in the first place, what the decision is and what its likely consequences are.
Some people may find it easy to make day-to-day decisions such as what to buy for dinner but they may not be able to decide what they must do when it comes to other important matters such as their savings or where to live. It is also possible that a person’s ability to understand things and make decisions can change from day-to-day.
Simply because a person needs more time to communicate or understand doesn’t imply that they lack mental capacity. For instance, if a person has been diagnosed with dementia, it doesn’t necessarily mean that the person will not be able to make any decision for themselves. If a person is experiencing a difficulty in communicating their wishes or making a decision, their loved ones should make an attempt to help them overcome the difficulties and allow them to decide for themselves before using the powers granted in a LPA.
There are different types of Power of Attorney and it is possible to set up more than one at a time.
You can appoint one or more individuals to the position of an attorney through an Ordinary Power of Attorney and thereby give them the authority to act on your behalf when it comes to taking decisions concerning your financial affairs. Such a Power of Attorney is valid only while the donor still has the mental capacity to make their own decisions. The following are situations in which an ordinary Power of Attorney can come in handy:
The powers granted to an attorney in an Ordinary Power of Attorney can be restricted or curbed by the donor. For example, the attorney may be given the authority to access your bank accounts but not your other assets such as home or other investments.
If you have reason to believe that you might lose your mental capacity in the near future, setting up an Ordinary Power of Attorney may not be the right course of action for you. In such situations, a Lasting Power of Attorney would be more suited to your circumstances.
There are two types of Lasting Power of Attorney that you can make:
Property and Financial Affairs Lasting Power of Attorney
It is up to you to decide when a Property and Financial Affairs Lasting Power of Attorney comes into effect. You can decide to implement it while you still have the mental capacity or you can have it enforced upon loss of mental capability.
Health and Welfare Lasting Power of Attorney
This type of Lasting Power of Attorney is only applicable when the donor has lost the mental capacity needed to take decisions concerning their health and care. The decisions taken can be related to the donor’s line of treatment, where they should receive treatment (clinic or home), and even things like what they should eat and who they can socialise with.
Many people are under the impression that upon losing their mental capacity, their spouse or heir would automatically inherit the right to act on their behalf. However, the law makes it necessary for a Power of Attorney to be in place before someone starts taking decisions on behalf of another person.
Yes! We’ve made is incredibly simple to make and LPA along with your Will by answering a few additional guided questions. Valulife’s systems will then create your documents for you to print, sign and witness, then pop them in the post to the office of public guardian (OPG) and job’s a goodun.
