A Lasting Power of Attorney (LPA) is a document that gives your chosen attorney(s) the power to make important decisions on your behalf if you’re ever unable to do so yourself, often due to illness or injury. There are two types of LPA, each giving your attorney a different set of powers – in this guide we’ll explain what a Property & Financial Affairs LPA is, and what sort of things your attorney will be able to do for you.
What Is A Property & Financial Affairs Lasting Power of Attorney (LPA)?
A Property & Financial Affairs LPA gives your attorney the power to make decisions on your behalf regarding your finances and property if you’re ever unable to do so yourself. This is not only important to ensure your finances and property are looked after by someone you know and trust, but it can also prevent loved ones from being ‘locked out’ of accounts, policies and assets that they may rely on. An LPA must be made in advance whilst you still have sufficient mental capacity, but it won’t come into effect until you need it to.
Good Morning Britain host, Kate Garraway, suffered because her husband never made a Property & Financial Affairs LPA, read about her story here.
What Will My Property & Financial Affairs Attorney Be Able To Do?
Your attorney will be able to make decisions (or help you make decisions) about things like:
- insurance policies and utility bills
- bank and building society accounts
- pensions, benefits, tax, and debts
- selling or buying property when necessary
They’ll be able to use your money to keep your home running and buy your daily necessities. They’ll also be able to make gifts to close family and friends, and charitable donations, unless otherwise stated in your LPA – however, these can only be gifts and donations that you would usually make yourself (otherwise your attorney will have to apply to the Court of Protection to ensure they are acting in your best interests). Your attorney may be able to buy or sell property if necessary, but in most cases, they’ll have to seek legal advice before doing so.
If your attorney relies on accounts, policies, and assets that are in your sole name, they’ll be able to access these to ensure your family’s quality of life is not affected.
What Won’t My Property & Financial Affairs Attorney Be Able To Do?
Your attorney must keep your finances separate from their own unless you already have joint bank accounts or assets together, and all decisions and payments must be made in your best interests.
Your attorney won’t be able to change your Will, but they can apply for a Statutory Will if you need one.
Your attorney won’t be able to make any decisions regarding your health and welfare – this includes where you live, your day to day care, and the medical treatment you should receive. If you would like your attorney to be able to make these decisions you’ll need to make a Health & Welfare LPA.
How Do I Make a Property & Financial Affairs Lasting Power of Attorney?
Our team of experts can help you make a Property & Financial Affairs LPA, and we offer a discount when taking out a Health & Welfare LPA at the same time. You can choose one or more attorneys and you can also limit the powers they receive if you wish. We’ll register your LPA with the Office of Protection on your behalf – once registered, a Property & Financial Affairs LPA can come into effect whenever you give your permission, or automatically if you ever lose the mental capacity to make decisions for yourself.
The Bottom Line
There are two types of Lasting Power of Attorney, each designed to give your chosen attorney a different set of powers. A Property & Financial Affairs LPA enables your attorney to handle your assets and finances, and allows them access to important accounts and policies that are in your sole name. If you would like someone to also have the power to make decisions regarding things like your living situation, day to day care, and medical treatment, you’ll need to make a Health & Welfare LPA as well. We offer a discount when taking out both LPAs together, making this the most popular and cost-effective option.
Here at Michael Usher Wills & Estate Planning, we’ve been helping our local community with LPAs for 30 years. Please get in touch and our friendly team of experts will answer all of your questions for free. Call us on one of the numbers below or book a FREE consultation here. We look forward to helping you and making sure you and your family are fully protected.
Camberley: 01276 691979
Basingstoke: 01256 637007
COVID-19 Update
Due to the current situation, you are now able to make an LPA with us remotely for your own safety and convenience. The article below details how this works for our Wills service but the process is very similar when making an LPA. The only difference is that you require just one witness when signing your LPA – we can act as your witness if you need us to. If you would like to make your LPA remotely, click on the article below for more information or call us and we’ll explain how it works.
