We plan for retirement and even for death, yet skip the bit in between: what happens to your money if illness or an accident leaves you unable to manage it yourself? A lasting power of attorney answers that question, and setting one up early is one of the kindest things you can do for your family.
What it is
A lasting power of attorney, or LPA, is a legal document that lets you appoint someone you trust — an "attorney" — to make decisions on your behalf if you lose the capacity to make them yourself. Without one, your loved ones cannot simply step in; they may have to apply to a court for permission, a slow and costly process at an already difficult time.
The two types
- Property and financial affairs — covers your money, bills, bank accounts and property. This can be used, with your permission, even while you still have capacity.
- Health and welfare — covers medical care and living arrangements, and only comes into effect if you lose capacity.
Why set one up early
The cruel catch is that you can only make an LPA while you still have the mental capacity to do so. Leave it until something goes wrong, and it is too late — the option has gone. Setting one up while you are fit and well is simply sensible insurance, like a will. It does not hand over control now; it waits in the drawer until needed.
How to do it
You register an LPA with the Office of the Public Guardian. You can do it yourself for a modest fee, or use a solicitor for peace of mind on complex affairs. Choose attorneys you trust completely, consider naming a replacement, and talk to them about your wishes. It is a quiet, unglamorous task that can save your family enormous difficulty.