A Power of Attorney is a legal document that allows an individual to act on behalf of another person in specific matters. This can include both financial and personal decisions, ranging from managing bank accounts to making medical choices. The individual granted this authority, known as the “attorney,” has a responsibility to act in the best interests of the person who created the Power of Attorney, known as the “donor”.
In the UK, there are several types of Power of Attorney, with each granting differing levels of authority. The most significant and widely used of these is a Lasting Power of Attorney (LPA), which allows individuals to plan for their future in case they lose mental capacity.
What is Lasting Power of Attorney?
Lasting Powers of Attorney (LPA) are legal documents that allow a person to appoint someone they trust to make decisions on their behalf if they become unable to make those decisions themselves in the future. There are two main types of LPA: one for health and welfare decisions, and another for property and financial affairs. Each type serves a different purpose, but both give the attorney the authority to act in the individual’s best interests.
Property and Financial Affairs
This type of LPA allows the attorney to make decisions related to the donor’s property and finances. The attorney can manage all aspects of their finances, including accessing their bank accounts, paying bills, and managing their expenses. They can also handle property matters, such as buying or selling property owned by the donor and managing their assets. Additionally, the attorney can apply for state benefits or manage their pension on their behalf, ensuring their financial needs are met should they lose mental capacity.
Health and Welfare
This LPA allows the attorney to make decisions about the donor’s health and welfare. Lasting Power of Attorney guidance states that they can make various healthcare decisions, for example, choosing medical treatments and consenting to or refusing medical procedures. The attorney can also decide where the donor lives when they have Lasting Powers of Attorney, such as in a care home. They can make decisions about the donor’s personal care, including nutrition and hygiene.
When Does a Lasting Power of Attorney Become Active?
Lasting Powers of Attorney only become active when the donor loses mental capacity and is no longer able to make decisions for themselves. This ensures that the attorney can step in and make crucial decisions on behalf of the donor based on their best interests and any preferences that they’ve previously expressed. With an LPA for Health and Welfare, the attorney can make decisions even in situations where the donor may not be physically incapacitated but mentally unable to make informed choices, such as in cases of dementia or brain injury.
If you wish to create a Lasting Power of Attorney, contact Hook & Partners. David John Hook, Sacha, and the team can guide you through the Lasting Power of Attorney process, offering expert advice and support that’s tailored to your needs.