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17/01/2024
Money Saving Expert Martin Lewis recently underlined the importance of Lasting Powers of Attorney on his ITV Money Show.
Martin explained that if you lose mental capacity without having Lasting Powers of Attorney (LPAs) in place, it can cost thousands of pounds for your loved ones to apply through the courts for permission to manage your finances and access the funds to pay for your care.
The really important point that most people don’t realise, is that you can only set up LPAs when you have mental capacity. Once you’ve lost capacity, it’s too late.
The Money Saving Expert’s message was loud and clear, setting up Lasting Powers of Attorney is as important as having a will and, even though discussing loss of mental capacity with family might feel uncomfortable, it could save them thousands of pounds.
It is not uncommon for people to leave it too late to set up LPAs, perhaps believing they are only needed by older people or due to reluctance to raise the issue with family members.
Our advice would always echo Martin’s; it’s never too soon to set up LPAs and, just like wills, they are essential legal documents that protect you and your family.
How do Lasting Powers of Attorney work?
Lasting Powers of Attorney set out who you would like to manage your affairs and make decisions on your behalf if you are unable to do so.
There are two types of LPAs; one for property and financial affairs and one for health and welfare. We would strongly recommend having both as they are equally important.
In each LPA you will specify who you want to be responsible for making decisions on your behalf if you can’t make decisions for yourself.
To be valid, LPAs must be registered with the Office of the Public Guardian (OPG). This requires the LPAs, an application and a registration fee to be sent to the OPG. It can take 16-20 weeks for the OPG to register your documents.
Our private wealth team can advise on and arrange your Lasting Powers of Attorney. For a no-obligation chat phone 01782 205000 or email enquiry@beswicks.com.
