If You Couldn’t Make Decisions for Yourself, Who Would?

The Need for a Lasting Power of Attorney in Your Financial Plan

Imagine this scenario: You’re at home with your family when you receive a call you never expected — a loved one has suffered a stroke. In an instant, everything changes, and you’re faced with the overwhelming responsibility of managing their financial and healthcare decisions. But there’s a problem: your loved one never set up a Lasting Power of Attorney (LPA).

Without the proper legal authority, you may be unable to make the important decisions for them. You can’t access their bank accounts, manage their property, or make critical healthcare decisions. The emotional strain of the situation is hard enough, but navigating the legal process to gain the authority to act on their behalf only adds to the burden.

This is why having a Lasting Power of Attorney (LPA) in place is so crucial – especially when you’re not in immediate need of it.

What Is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that allows someone you trust to make decisions on your behalf if you’re unable to do so yourself due to illness, injury, or the effects of aging. It ensures your wishes are respected, and that your financial and healthcare decisions are made by someone who understands your values and priorities.

Without an LPA, your loved ones may face unnecessary delays and complications when trying to manage your affairs. Applying to the court for a deputyship can take months, and in an emergency, every moment counts. With an LPA, your chosen attorney can step in immediately, without needing court approval.

Why Plan Ahead?

You might think, “I’m in good health, why should I worry about an LPA now?” But life can change in an instant, and none of us can predict what might happen. A sudden illness, accident, or unforeseen circumstance can happen at any time. If it does, you don’t want to leave your family scrambling to navigate legal hurdles and red tape.

Take Sarah’s story as an example. Sarah, in her early 60s, was looking forward to retirement when she was diagnosed with early-onset dementia. As her decision-making abilities declined, her daughter, Emma, was able to step in immediately and manage her financial and healthcare decisions—because Sarah had already set up an LPA.

Sarah’s simple decision years earlier ensured that her family wouldn’t face unnecessary legal challenges or stress in a difficult time. Not only did Sarah protect herself, but she also safeguarded her family’s well-being and peace of mind.

The Two Types of LPAs

There are two types of LPA, each covering different aspects of your life:

1. Property and Financial Affairs LPA: This allows your attorney to manage your financial matters, such as paying bills, managing investments, and handling property or bank accounts. It ensures that your finances are in good hands if you can’t manage them yourself.
2. Health and Welfare LPA: This empowers your attorney to make decisions about your health and personal care, including medical treatments, where you live, and how you’re looked after. This LPA is especially important if you ever become incapable of making these decisions yourself.

Both types of LPA allow you to maintain control over your future, even if you’re no longer able to make decisions yourself. They ensure that your wishes are respected, and that someone you trust can manage your affairs according to your values.

The Peace of Mind in Preparation

An LPA isn’t just about planning for the worst—it’s about ensuring that your loved ones are equipped to act on your behalf when needed, with clarity and confidence. The peace of mind that comes from knowing your affairs are in order is invaluable, particularly in uncertain times.

Whether you’re in your 30s or 70s, setting up an LPA is an important step in your financial plan. It’s part of getting your entire financial house in order, ensuring that your family won’t have to face unnecessary complications or delays if the unexpected happens. It’s one of those decisions you may not need today, but it’s always better to be prepared than to leave things to chance.

Ready to ensure your financial future is in order? Get in touch with us today to discuss how an LPA can help safeguard your legacy and provide peace of mind for you and your loved ones.

 

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FAQs

1. What happens if I don’t have an LPA in place?

Without an LPA, your loved ones may have to go through a lengthy and complicated court process to gain the authority to manage your affairs, which can delay important decisions in an emergency.

2. What’s the difference between a Property and Financial Affairs LPA and a Health and Welfare LPA?

The Property and Financial Affairs LPA allows someone to manage your finances, while the Health and Welfare LPA allows them to make decisions about your health and personal care.

3. Can I change or cancel my LPA once it’s been set up?

Yes, you can cancel or amend your LPA at any time, as long as you’re mentally capable of doing so.

4. Do I need both types of LPA?

While you’re not required to have both, many people opt to set up both types to ensure that all aspects of their life—financial and healthcare—are covered in case they become incapacitated.

5. When should I set up an LPA?

It’s best to set up an LPA while you’re still healthy and able to make decisions. This ensures that, in case of unexpected events, your wishes are already legally protected.