Legal Eagle: Plan ahead when it comes to health and your finances

In situations such as these, it is sensible to plan ahead and have tools in place that allow your friends or family to support you with managing your finances or healthcare when you are unable to make decisions yourself.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a document which allows another person to help you make decisions or to make decisions on your behalf. A LPA gives you control over what happens if you become unwell or have an accident which inhibits you from making decisions yourself. If you cannot make decisions yourself, this is known as ‘lacking capacity’. Whoever you choose to appoint to make decisions on your behalf is known as your ‘attorney’.

There are two different types of LPA and both need separate applications:

Health and Welfare – this is to manage medical care and life-sustaining treatment;

Property and Finances – this is commonly used for managing your home, including selling it if it is no longer needed, or managing your bank accounts, including making sure that bills are paid.

You can choose to make one LPA for either Health & Welfare or Property & Finances, or both. They have separate fees.

A LPA for Property & Finances can be used as soon as it is registered, whereas a LPA for Health & Welfare can only be used once you are unable to make your own decisions.

Who can apply for a Lasting Power of Attorney?

A LPA can only be made by someone who has capacity to do so. It must be their choice (not a family member’s) and they must understand what it means to make a LPA.

If someone has been diagnosed with dementia, this does not automatically mean that they lack capacity to make a LPA. Dementia effects everyone differently and capacity is a complex area, so we recommend that you contact a solicitor or healthcare professional (such as a GP or social worker) to confirm that you have capacity to make a LPA if you are unsure.

Who can be my Attorney?

Your attorney can be anyone that you trust to ‘step into your shoes’ and make decisions on your behalf. It can be a friend, partner, relative, or a professional such as a solicitor. You can choose more than one person to be your attorney, in which case you will need decide if they’ll make decisions separately or together.

The only requirements are that your chosen attorney(s) must be over 18, have capacity to make their own decisions, and have never been declared bankrupt.

Attorneys must involve you in any decisions as far as they can, and they must always act in your best interests.

What if I change my mind?

You can choose to end your LPA at any time whilst you still have the capacity to do so.

Ben Hoare Bell LLP has specialist Court of Protection solicitors who can help with issues surrounding Lasting Power of Attorneys.

To speak to a solicitor please contact us on 0191 275 2626 or email [email protected].