As we go through the different stages of life, we take various steps to protect our financial interests, from saving money to investing in assets and planning for retirement.
However, have you ever thought about what would happen if you were unable to make vital life-changing decisions due to some unfortunate circumstances?
Nobody likes to think of a time when they are unable to manage their health or financial affairs. Yet, there are many unexpected events that could affect our ability to do so. As such, you need to be prepared to ensure that you and your financial wishes are protected during these challenging times.
This is where Lasting Power of Attorney (LPA) comes in as an essential failsafe.
An LPA is an essential legal tool that can protect both you and your loved ones from what can easily escalate into a very challenging situation. With the modern legal system, you can even complete your OPG LPA online to conveniently set up an LPA from the comfort of your home.
In this article, we’ll examine how an LPA can help you protect your financial wishes and look out for your future self.
Let’s begin!
What Is an LPA?
A Lasting Power of Attorney is a legal document that allows you to give someone the power to make decisions on your behalf if you are mentally incapacitated.
With an LPA, you have more control over what happens if you are unable to make decisions for yourself regarding your health, finances and welfare. There are two main types of LPA — a health and welfare LPA and a property and financial affairs LPA.
An LPA is separate from your Will. When planning for the future, it’s common practice to get both documents in place at the same time. The key difference is that while a Will protects your interests after you’ve passed, an LPA protects your interests while you’re still alive.
What Are the Risks of Not Having an LPA?
1) Inability To Choose a Decision-Maker
When you do not have an LPA in place, you won’t be able to choose who manages your affairs in case you’re unable to make essential life decisions.
Instead, the court will appoint a deputy to make choices on your behalf. This person may not be someone you would have chosen and could potentially lead to decisions that do not align with your values and preferences.
2) You Can’t Express Your Wishes
An LPA allows you to specify your wishes regarding health, finances and personal welfare. In the absence of it, your choice of treatment and medical care may not be respected and resulting in medical decisions that do not honour your desires.
3) No Choice in Residence
If you need to move out of your home into a care facility or an assisted living arrangement, you will not have a choice but to move where your deput decides. As a result, it may not be an environment you would’ve preferred.
Moreover, being placed in an unsuitable or unfamiliar setting can lead to feelings of distress and discomfort.
4) Change in Lifestyle
Having an LPA in place helps ensure that your lifestyle choices are maintained in accordance with your wishes.
Without it, there is a risk of lifestyle changes that aren’t aligned with your needs or personal preferences. These unwanted changes could result in a decline in your quality of life.
5) Additional Stress & Expense
Not having an LPA in place can cause significant stress and financial burden for your loved ones.
The process of applying to the Court of Protection for someone to gain the authority to make decisions on your behalf is costly, time-consuming and stressful. Since there is no LPA in place, your loved ones will not be able to access your assets that could be used to meet essential costs or financial obligations.
You can avoid all this chaos and stress by creating an LPA to provide clear instructions and authority to someone you trust.
How To Set Up Lasting Power of Attorney
Setting up an LPA is relatively easy to do, but you may need to work alongside a qualified legal professional to ensure it is properly drafted and legally binding.
First, think carefully about who you want to appoint as your attorney. Your attorney needs to be someone you trust and understand your values so that they can act in your best interests.
Next, you will need to obtain and properly fill out the LPA forms from the Office of the Public Guardian (OPG) or through a legal professional. Ensure you fill out the forms accurately with all the relevant information and signatures.
After the forms are completed, you will need to register your LPA with the OPG. This step will include a registration fee and the process can take many weeks, so it’s best to start as soon as you can.
Once your LPA has been successfully registered, share the details with your family members, attorney and key financial institutions so that they know about the arrangements in place.
To Wrap Up
Life has a penchant for throwing time-sensitive curveballs at us when we least expect them.
Having Lasting Power of Attorney in place is an essential step to safeguard your financial future and ensure that your wishes are respected, even when you are unable to make decisions yourself.
It’s best to avoid putting off this important task and get your LPA in place to ensure that the people you trust can make decisions with your interests in mind.
 Protects Your Financial Wishes){kind=link}