Lasting Power of Attorney (LPA) and why it’s so important

November 01, 2020

Quite simply, an LPA allows you (donor) to elect one or more people to act on your behalf if you lose mental capacity, either temporarily or permanently.

It lasts during your lifetime because, on your death, your Will would take effect.

Temporary loss of capacity may, for example, be because of an accident, a coma or the effect of strong medication.

Permanent loss of capacity could, for example, be due to Dimentia, a terminal illness or end of life.

Any of these could happen to anyone at any time and it is especially important to consider making an LPA if you have a business.

There are two types of LPA.

1. Property & Financial Affairs

This allows your chosen person/s (attorneys) to manage your finances for you, from paying your bills to making investments for you. You can choose which attorneys make certain decisions and you can choose whether your LPA comes into effect only when you lose mental capacity, or before.

If you have a business, who would make your day to day decisions and deal with major situations, if you could not? Who would pay the bills or deal with staff and suppliers?

2. Health & Welfare

This allows your chosen person/s (attorneys) to make decisions regarding your medical care, ranging from where you live to end of life choices.

Because both LPAs give your attorneys so much responsibility, it is vital that you choose them carefully and that they fully realise what the role involves.

You should bear in mind that not all jurisdictions have the same approach to mental capacity but an English LPA may be acceptable in certain foreign jurisdictions if it has been translated and legalised for use overseas.

Excelsior is available to help you with these difficult decisions and we welcome any queries or concerns you may have. Feel free to contact us.

Free advice is available by text or email.                            

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