Lasting powers of attorney (LPA) can be set up in respect of personal health and welfare, or property and financial affairs, or both. In both cases, one or more attorneys can be appointed, as well as replacement attorneys.
The number of people that opt for an LPA has increased significantly in the last few years, with recent data showing that the figure has tripled in the past five years.
To help you navigate this process, we’ve put together a list of our top tips for setting up an LPA:
LPAs can be set up with a replacement attorney, and not having one at the beginning of the process can cause complications further down the line. Failing to appoint a replacement would mean that a replacement would need to be found should the original attorney became bankrupt, unwell, refused to act or died.
Without an LPA set up, a Court of Protection application would be the automatic option, but this could be a lengthy and expensive process.
Safeguards or protections
Building in safeguards and protections is essential when setting up an LPA. These can be things such as bans on the sale of property or family heirlooms, as well as restrictions on gifts and loans.
While some individuals may be reluctant to include these safeguards, they can ensure long-term protection, particularly when an LPA is set up well before it is needed, and expert advice can assist individuals in tailoring the LPA to their requirements.
Choose the attorney carefully
Many people elect to appoint their children as their LPAs, but this may not always be the best option. It’s important to consider who is good at managing money, how close they live to the individual, and whether they are suitable because of their busy lives.
There is also the potential for conflict in the appointed LPA finds themselves in financial difficulties, which must be taken into consideration.
It’s important to set up an LPA correctly, which can be done with the assistance of an expert. For help and advice relating to LPA’s, contact our expert team today.