Powers of Attorney

Most people acknowledge that it is important to organise their affairs in the event of their death, which is why so many people make a Will these days. However, many fail to make similar provisions to organise their affairs should they become unable to look after them themselves during their lifetime, through illness or accident - an ever increasing possibility given the constant advances in medical care.

Enduring Powers of Attorney (EPA)

Until the 1st October 2007 it was possible to prepare an Enduring Power of Attorney, appointing someone to manage your financial affairs on your behalf if you became unable to do so. Under the provisions of the Mental Capacity Act 2005, new Enduring Powers of Attorney cannot be made, although existing EPAs continue to be valid.

Lasting Powers of Attorney (LPA)

Under the Mental Capacity Act 2005, you can now draw up a legal document called a LASTING POWER OF ATTORNEY (LPA) - a document that enables you to appoint a person or persons to look after your affairs in the event of mental and/or physical incapacity, perhaps due to infirmity in old age, illness or accident.

It is essential that such arrangements are made whilst you are fit and healthy since the Law does not allow such arrangements to be made after the event, which can leave families with a multitude of practical problems.

You can draw up a LPA to cover the management of your financial affairs (called a Property & Affairs LPA) and you can draw up a second LPA (called a Personal Welfare LPA) to cover the management of personal matters such as medical care.

While an LPA is a very powerful document, there are numerous safeguards to prevent its abuse:

An LPA is primarily used to appoint a person to deal with your affairs after the onset of mental and/or physical incapacity. However before the document can be used, certain people (including you), who you elect when drafting the LPA, have to be notified and anyone can object if they are not happy with the reasons why the document is being brought into effect.

You can include restrictions on what the people you appoint can and cannot do under the authority of the documents and you can include advice or guidance on how you would like them to act.

When the LPA is signed, a certificate must be completed by a lawyer, doctor, social worker or an Independent Mental Capacity Advocate to confirm that the person making the document understands the meaning of the LPA and the consequences of it.

Like your Will, a LPA can be updated or cancelled at any time should your circumstances change.

For more information on drafting either a Property and Affairs LPA or a Personal Welfare LPA, please contact an IPW member near to you, just click here.

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