Property And Financial Affairs LPA

As we plan for the future, it’s essential to consider what might happen if we are no longer able to make important decisions for ourselves. While many people focus on writing a Will to ensure their estate is managed after their death, fewer think about who would handle their financial affairs during their lifetime if they were to lose mental capacity. This is where a Property and Financial Affairs Lasting Power of Attorney (LPA) becomes invaluable and in this article, we discuss the subject in more detail

Please click here to find out more about our Wills and Lasting Power of Attorney Services.

Free Initial Telephone Discussion

For a free initial discussion on how we can help you deal with the legal implications of creating a Property and Financial affairs lasting power of attorney, get in touch with us today. We are also experienced in dealing with all aspects of Wills and Probate and we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.

What is a Property and Financial Affairs LPA?

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone (known as an attorney) to make decisions on your behalf if you are unable to do so. There are two types of LPAs: one that covers health and welfare, and the other that deals with property and financial affairs. A Property and Financial Affairs LPA grants your attorney the authority to make decisions related to your finances, property, and general financial wellbeing.

This type of LPA can cover a broad range of responsibilities, including:

• Managing your bank accounts and investments
• Paying your bills, including mortgage or rent
• Collecting your pension or benefits
• Buying or selling property
• Handling your tax affairs

Importantly, a Property and Financial Affairs LPA can be used either when you still have mental capacity but wish for someone to act on your behalf, or it can be activated if you lose capacity to manage your affairs.

Why Do I Need a Property and Financial Affairs LPA?

While we hope to remain healthy and capable of managing our affairs, life is unpredictable. A sudden illness, accident, or the onset of dementia can make it impossible for us to look after our financial matters. If this happens and you don’t have a Property and Financial Affairs LPA in place, even your closest family members will not have the automatic legal right to step in and manage your finances.

Without an LPA, your loved ones would need to apply to the Court of Protection to become a deputy, which can be a lengthy, stressful, and costly process. Having a Property and Financial Affairs LPA in place avoids this uncertainty, ensuring that someone you trust can manage your finances without delay, in line with your wishes.

Here are some of the key reasons to consider setting up a Property and Financial Affairs LPA:

1. Ensuring Continuity in Financial Management

If you lose the ability to manage your finances, an LPA ensures that bills are paid, investments are handled, and day-to-day financial obligations are met without interruption. Your attorney can manage everything smoothly, whether it’s paying for your care, maintaining your property, or ensuring tax returns are filed.

2. Preventing Legal Complications

Without an LPA, the process of someone stepping in to manage your affairs can be complicated and time-consuming. The Court of Protection will need to appoint a deputy, which could take months, leaving your financial affairs in limbo. Having an LPA in place gives your chosen attorney the authority to act immediately, should it be necessary.

3. Flexibility to Act Even When You Have Capacity

A Property and Financial Affairs LPA doesn’t only apply when you’ve lost mental capacity. If you become physically incapable of managing your finances, or if you simply prefer someone else to manage certain aspects of your finances (for example, if you spend time abroad), your attorney can act on your behalf with your permission.

4. Protection Against Financial Abuse

By choosing someone you trust to be your attorney, you ensure that your financial affairs are in safe hands. This is a significant safeguard, especially as financial exploitation of vulnerable individuals is unfortunately not uncommon. With an LPA, you have control over who is responsible for your money and property.

Who Should Be My Attorney?

Choosing an attorney for your Property and Financial Affairs LPA is a crucial decision. This person (or people) will have significant control over your finances, so it’s vital to choose someone you trust completely.

Most people choose close family members, such as a spouse, partner, or adult children. However, you can also appoint a professional, such as a solicitor, especially if your financial affairs are complex or you prefer an independent professional to take on the responsibility.

When choosing an attorney, you should consider:

• Trustworthiness: The person you choose must be reliable and able to manage your affairs responsibly.
• Capability: Handling finances can be complicated, especially when managing investments or property. Ensure that your attorney has the necessary skills or knowledge to handle your finances.
• Willingness: Being an attorney can be time-consuming and demanding. Make sure your chosen person is willing and able to take on the role.

You can appoint more than one attorney if you wish. If you choose multiple attorneys, you can decide whether they act jointly (i.e., making all decisions together) or jointly and severally (i.e., they can act together or separately). This can provide flexibility if, for example, one attorney is unavailable.

How Do I Set Up a Property and Financial Affairs LPA?

At Blackstone Solicitors, we are here to assist you with every step of setting up a Property and Financial Affairs LPA. Here is an overview of the process:

1. Choose Your Attorney(s)

The first step is deciding who will act as your attorney. You can also name replacement attorneys in case your original choices are unable to act when needed.

2. Complete the LPA Form

We will help you complete the necessary forms for your Property and Financial Affairs LPA. These forms include sections where you specify your attorney(s) and any preferences or instructions you have regarding how they should manage your affairs.

3. Certificate Provider

A certificate provider is someone who confirms that you understand the LPA and are not being coerced into making it. The certificate provider can be someone who has known you for at least two years or a professional, such as a solicitor.

4. Register the LPA

Once the forms are complete and signed, they must be registered with the Office of the Public Guardian (OPG). Your LPA will only come into effect once it has been registered, a process that can take several weeks.

5. Keep the LPA Safe

Once registered, your attorney(s) will be able to use the LPA when needed. You should keep the original document safe and ensure that your attorneys know where to find it.

When Does the LPA Take Effect?

A Property and Financial Affairs LPA can be used as soon as it is registered, with your permission, even if you still have mental capacity. This can be helpful if you need someone to handle your finances temporarily, such as during a hospital stay or a long trip abroad.

However, you can also specify that the LPA should only come into effect if you lose mental capacity. This provides flexibility, ensuring your attorney can step in when needed, but leaving you in control of your finances while you are still able to manage them.

Conclusion

A Property and Financial Affairs LPA is a vital tool for ensuring that your finances are protected and managed in line with your wishes if you lose the capacity to do so yourself. By appointing a trusted attorney and making your preferences clear, you can avoid unnecessary complications, safeguard your assets, and ensure peace of mind for yourself and your loved ones.

How we can help

We have a proven track-record of helping clients create a lasting power of attorney. This also includes all the different types, even if you need more than one. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact Our Wills and Probate Solicitors

It is important for you to be well informed about the issues and possible implications of creating a Lasting Power of Attorney. However, expert legal support is crucial in terms of ensuring your wishes are met as you would want them to be.

To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Blog, News Tagged as

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