Lasting Power of Attorney (LPA)

We are all aware of the importance of making a Will for the events that follow our death but what happens if we are still alive and just incapable of dealing with our financial affairs and/or property due to an accident, mental incapacity or illness.

This is where an Lasting Power of Attorney (LPA) could help.

Contact a Specialist to discuss this further

What is an Lasting Power of Attorney?

An LPA is a legal process in which you, 'the donor', give the legal right to one or more people, the 'attorneys', to manage your financial affairs.

This power can come into effect immediately. This means that your attorneys can manage part or all of your financial affairs for you, or you can continue to manage them yourself while you are able to and hand over the responsibility later.

If you become mentally incapable, your attorneys will apply to register your LPA with the Office of the Public Guardian. While the registeration is being processed, they can use your finances for essentials on your behalf, such as food or payment of regular bills. However, they are not able to arrange larger transactions, such as the sale of your house, until the LPA has been registered.

You can specify that the LPA can only come into effect once you become mentally incapable. However, there are drawbacks to restricting the LPA in this way.

For example:

- Even if you are not mentally incapable, you are likely to find it more and more difficult to deal with financial affairs as your condition worsens. No one will have the authority to take over your responsibilities if you need them to do so.                                                                             

- Once you do become mentally incapable, no one will be able to act on your behalf during the time that it takes for an LPA to be registered.