Lasting Power of Attorney

None of us wants to think about a time when we may not be able to manage our own affairs, whether this is because of old age or a more sudden problem such as an accident or illness. But it can happen and this begs the question, who will take care of your affairs if your capacity to make decisions about your own finances or health becomes diminished?

The Situation Without Lasting Power of Attorney

If you have not made any arrangements, the only way your financial affairs can be managed is by an application to the Court of Protection for Deputyship, often made by one of your relatives or someone close to you. There are a number of issues with this route:

  • You do not get to decide who makes the application. The very fact that an application is being made to court on your behalf is indicative of the fact that you are no longer deemed capable of making your own decisions. A judge will make the final decision on who is appointed and this may not be who you would have wished to manage your affairs. It may not even be a family member.
  • The person submitting the application must provide a great deal of personal information about themselves, their family and their own finances. This is time consuming and many people may not wish to reveal such information.
  • Medical evidence of your incapacity needs to be obtained. Again, this is time consuming and potentially costly.
  • The process of appointing a deputy can take anything from 12 weeks to 10 months. Take a few seconds to imagine your financial affairs being ignored for 10 months, simply because no one has the authority to help you.

There are currently 55,000 people in the UK in the above position; unable to manage their own affairs and unable to choose who does.

There is a solution!

Lasting Power of Attorney

Serving the public for centuries, Lasting Powers of Attorney allow you to appoint a specific person to manage your affairs should you become incapacitated. This Lasting Power of Attorney allows the person of your choice to make decisions about your finances including paying bills, dealing with banks and investments, arranging and collecting benefits and even selling a property on your behalf.

There are a number of advantages to this route:

  • Arguably,  the most important advantage to Lasting Power of Attorney is that you get to choose the person you want to make decisions on your behalf.
  • Minimal personal information is required to set up a Lasting Power of Attorney making it much easier for the person you choose to agree to act on your behalf.
  • By setting up a Lasting Power of Attorney before you are incapacitated, there is no medical evidence required.
  • Setting up a Lasting Power of Attorney is relatively swift. Additionally, there will be no “lag time” when your finances aren’t being looked after because no one has the authority to do so.

Finally, before you think that Lasting Power of Attorney is just for the older generation, remember that, once in place, it can come into action under circumstances such as a car accident or sudden illness.

If you would like to investigate how a Lasting Power of Attorney can help you and your family, the team at Know Your Options are always ready to help.