| Lasting Power of Attorney (LPA)
On 1st October 2007 the Enduring Power of Attorney (EPA) became the Lasting Power of Attorney (LPA). The latter is more powerful and has more safeguards built in, e verybody who makes a Will should also make a Lasting Power of Attorney.
A Lasting Power of Attorney (an 'LPA') is a document that you sign to appoint somebody to act for you should you for any reason become unable to manage your own affairs.
If you care enough about what happens to your assets after you die, you ought to care even more about keeping them safe whilst you are alive.
While a Will ensures that your estate is distributed according to your wishes when you die, a Lasting Power of Attorney protects your assets by authorising somebody chosen by you to deal with your affairs on your behalf (should you become unable to manage them yourself) whilst you are alive.
If you do not have a Lasting Power of Attorney, and suddenly become unable to manage your own affairs, for example:
- You suffer an accident and are confined to bed or hospital
- You suffer a more serious accident which permanently incapacitates you
- You become mentally incapacitated as a result of old age or for some other reason
... then the only way that your financial affairs can be managed is by an application (by a relative or other person close to you) to the Court of Protection. This could take up to 10 months and cost up to £1,000 to process - during which time your finances could be seriously damaged - and the person authorised to handle your affairs on your behalf is not only unlikely to be who you would have chosen, but may even be a Court Official - who charges every time that they act for you.
If you have a Lasting Power of Attorney, your chosen representatives can act for you straight away if you become unable to handle your own affairs, and within a few weeks if you become mentally incapacitated.
Inheritance Tax will be payable on 2.1 million homes. (source - Halifax Bank).
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Other points to consider - please complete the form below to receive more information on the benefits of
- residential care
- to potentially protect your home from the Long Term Care means test
- Inheritance Tax Planning*
- discretionary Will trust*
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