Estate planning involves more than just preparing a will to distribute your assets – it also includes making arrangements for managing your affairs if you become unable to do so. One essential tool in this regard is a Lasting Power of Attorney (LPA), a legal document that grants someone you trust the authority to manage your affairs on your behalf, should you become incapable of doing so in the future. Incorporating an LPA into your estate plan can provide you with peace of mind and ensure that your financial, health, and welfare matters are in safe hands.
An LPA provides an effective way to maintain control over important aspects of your life by appointing someone you trust to make decisions on your behalf. Without an LPA, your loved ones may face complex and time-consuming legal processes, such as applying for a deputyship order through the Court of Protection, which can be both stressful and costly. By incorporating LPAs into your estate planning, you can alleviate potential difficulties and ensure a robust plan in place, no matter what the future holds.
In the following sections, we will delve into the two types of LPAs – Property and Financial Affairs LPA and Health and Welfare LPA – and demonstrate how Sovereign Planning’s expert guidance can assist you in crafting effective and bespoke LPAs tailored to your unique circumstances and preferences.
Types of Lasting Powers of Attorney: Property and Financial Affairs LPA
There are two different types of LPAs, each serving a distinct purpose and addressing separate aspects of your life:
1. Property and Financial Affairs LPA: This LPA allows your appointed attorney to manage your finances, property, and other monetary affairs on your behalf. This may include tasks such as paying bills, managing bank accounts, selling or letting your property, and investing your finances.
2. Scope and limitations: It is essential to clearly define the scope and limitations within your Property and Financial Affairs LPA, outlining the specific responsibilities and powers conferred upon your chosen attorney. This ensures a tailored approach reflecting your preferences and requirements.
Types of Lasting Powers of Attorney: Health and Welfare LPA
1. Health and Welfare LPA: Unlike the Property and Financial Affairs LPA, the Health and Welfare LPA focuses on decisions related to your day-to-day care, medical treatment, and overall well-being. This may involve choices about medical treatment, living arrangements, or personal care.
2. Activation upon incapacity: It is important to note that the Health and Welfare LPA can only be activated when you are deemed unable to make decisions for yourself, whereas the Property and Financial Affairs LPA can take effect as soon as it is registered – depending on your preferences.
Choosing the Right Attorney and Safeguards
Selecting the right attorney(s) and implementing safeguards is crucial in protecting your interests when creating an LPA:
1. Consider Candidates Carefully: Choose an attorney you trust and feel confident in their ability to make decisions on your behalf. This may be a family member, friend, or a professional, such as a solicitor or trust corporation.
2. Appointing Multiple Attorneys: You have the option to appoint more than one attorney, who may act jointly, jointly and severally (individually or together), or jointly for some decisions and severally for others. This offers flexibility and additional safeguards in decision-making.
3. Implement Safeguards: Incorporate clear instructions, preferences, and restrictions within your LPA to ensure your attorney(s) follow your wishes and act in your best interests. This can minimise the risk of abuse or misunderstandings.
The Role of Professional Will-Writing Services in LPA Creation
Professional will-writing services like Sovereign Planning play a vital role in ensuring your LPAs are effective, tailored, and legally binding:
1. Expert Guidance: Sovereign Planning’s experienced team provides comprehensive advice on creating LPAs, ensuring all aspects of your unique circumstances are considered and appropriately addressed.
2. Drafting and Registration: Our team will assist you in crafting clear, bespoke, and legally enforceable LPAs tailored to your wishes while ensuring their proper registration with the Office of the Public Guardian.
3. Assistance with Complex Situations: If your estate or personal circumstances are particularly complex, our team offers invaluable support in navigating challenging issues, providing peace of mind that your long-term wishes and interests are protected.
Incorporating Lasting Powers of Attorney into your estate planning is essential for safeguarding your future interests and the well-being of your loved ones. By establishing both Property and Financial Affairs and Health and Welfare LPAs, you can ensure that your appointed attorney(s) can manage your affairs according to your preferences in the event of incapacity.
At Sovereign Planning, we provide professional will-writing services that can help you craft and register effective LPAs tailored to your unique needs, offering long-term security and peace of mind. Safeguard your future wishes and the well-being of your loved ones by incorporating LPAs into your estate planning. Contact us today to discuss your requirements and begin the process of crafting a comprehensive estate plan!