Unexpected health crises and sudden complications can be a heavy burden on patients and their families. A sudden illness, unexpected accident, or complicated pregnancy are just a few examples of situations that require immediate and critical decision-making. It is where a Lasting Power of Attorney (LPA) can be invaluable.
At Freeman Harris, we know that planning for when the unexpected hits can be daunting. So this guide will guide you through the crucial role LPAs can serve in protecting your wishes during a crisis and tips on how to set them up and use them properly.
What Is a Lasting Power of Attorney (LPA)?
LPA (Lasting Power of Attorney) is a legal document that enables you (the donor) to select one or more trusted persons (attorneys) to take decisions on your behalf in the event. LPAs form a necessary part of an estate plan which ensures that your financial and personal affairs are dealt with in accordance with your wishes.
An LPA enables you to retain control in circumstances where you are unable to convey your preferences as a result of physical or mental inability.
In the UK, there are two major types of LPAs, each with a different purpose:
LPA for Property and Financial Affairs
This particular LPA allows your chosen attorney to make decisions regarding your financial affairs such as:
- Managing bank accounts
- Paying bills
- Receiving benefits or pensions
- Buying or selling a home or handling property transactions
- A Property and Financial Affairs LPA takes effect as soon as it is registered, with your consent, or only when you lack capacity.
- Health and Welfare LPA
Under this LPA, your solicitor may be able to decide on your medical treatment and personal health decisions including:
- Medical care, such as agreeing to or declining treatments
- Your housing situation, for instance, moving into a care home
- Daily maintenance, such as what you eat and wear
This kind of LPA only kicks in when you are judged to no longer have the ability to make these decisions yourself.
Both LPAs are intended to provide you with bespoke solutions regarding varying aspects of your life and complement each other to provide you with holistic coverage.
Understanding Why You Need an LPA Prior to a Crisis
Emergencies can happen at any time. If you do not have an LPA set up, your loved ones will likely face serious delays and legal challenges when seeking to take over and manage your affairs. If you do not have an LPA, a deputyship might have to be arranged through the Court of Protection, which could be an expensive and lengthy process for your family.
For example:
In the event of a sudden health emergency, such as a stroke, your designated attorney under your Health and Welfare LPA may be able to immediately step in and inform healthcare professionals as to how you wish to be treated.
If you’re incapacitated when complexities arise during your pregnancy, your attorneys will make sure both your personal and medical preferences are followed.
Knowing that if you should find yourself in a crisis a trusted person of your choosing can act on your behalf is reassuring and gives your family peace of mind, should action need to be taken to protect your interests.
How LPAs Work During a Crisis
if you are no longer able to make decisions due to a crisis situation, your attorney can make decisions on your behalf using the authority that your LPA confers. Here’s how it works:
Registration: The LPA must be registered with the Office of the Public Guardian before it can be used. In the case of a Health and Welfare LPA, incapacity needs to be certified by medical doctors.
Decision-Making Authority: Your attorney can step in and make critical decisions whether that’s making sure bills are paid on time, accessing medical records or advising on treatment.
Individual Advocacy: Attorney is obligated by law to represent your interests and make decision should adhere your written choices and values.
A valid and registered LPA ensures that your attorney is able to act quickly, thus preventing any unnecessary delays, particularly in emergencies when every moment saves lives.
How to Set Up an LPA
Setting up an LPA is a simple process, but one that should be done with due consideration. Here’s how you can do it:
1. Choose the Right Attorneys
Pick someone you trust unconditionally, like a close family member or friend.
Remember, they need to be accessible, dependable, and be able to juggle complex tasks.
You can designating more than one attorney, and if they need to act jointly or separately.
2. Fill Out the Necessary Forms
You can get the official forms from the Office of the Public Guardian (OPG).
Use LP1H for a Health and Welfare LPA. Use form LP1F for a Property and Financial Affairs LPA.
3. Certify Your Capacity
An independent certificate provider a doctor or solicitor, for instance will need to confirm that you understand the implications of making the LPA and that you are making it freely.
4. Register the LPA
Send these forms to the OPG with the registration fee (£82 per LPA).
It may take several weeks to register, so don’t put off this step.
5. Review and Update Regularly
Review your LPA every few years, or when you experience major life changes, to make sure it reflects your wishes.
Why LPAs are Beneficial in a Crisis Setting
Some of the advantages that having an LPA brings in the midst of an emergency include:
Authorization: By creating a will, you designate whom you prefer to handle your affairs, eliminating potential confusion.
Family Peace of Mind: When you decide to appoint an attorney to take charge, your loved ones will avoid fighting or confusion.
Simplified Procedures: Management can proceed promptly under a registered LPA, without awaiting court approvals.
Dignity Preservation: Decisions are made with consideration for your values and preferences even if you can’t express them.
Frequent Queries and Issues Surrounding LPAs
LPAs are fantastic tools, however, some may raise concerns about them, such as:
Attorney Mismanagement: Reduce this risk by selecting trustworthy individuals and demanding they maintain accurate records of their actions.
Complex Forms: A solicitor can advise you and ensure forms are filled out correctly.
No Upfront Costs: There are fees for the setup and registration of an LPA, but these are minimal compared to what you’d pay in the absence of one.
Final Insights
Emergencies are unpredictable, and preparing for the unexpected is critical in safeguarding your family, finances and overall well-being. A Lasting Power of Attorney means your chosen advocates can act in your best interests quickly, decisively and legally. It’s the thing that speaks for you, whether it’s handling your money or protecting your health and welfare, during life’s most difficult times, taking a great load off your shoulders, whether you’re young or old, while you’re still alive.
At Freeman Harris, we’re on hand to help you put in place or update your LPAs to protect your future. Reach out to us today to get professional, compassionate advice on how to handle this important matter as part of your estate plan.
