Unfortunately, sometimes it becomes necessary for other people to manage the affairs of someone else. There can be any number of reasons for this and there are several ways of helping someone manage their affairs. There are a number of things that can be managed on behalf of someone:
• Managing finances
• Buying or selling property
• Claiming and spending welfare
• Deciding where someone lives
• Making decisions that affect their day-to-day life (such as healthcare)
When managing someone else’s affairs with the Power of Attorney, there are different levels of control that can be granted, these are:
• General Power of Attorney
• Lasting Power of Attorney
• Enduring Power of Attorney
In this article, we will be dealing with Lasting Powers of Attorney (LPAs). An LPA is necessary when your affairs need to be cared for by someone else for a long period of time and you could be at risk of losing mental capacity in the future. An LPA cannot be granted if someone is already lacking mental capacity.
There are two different types of LPA:
• Property and Financial Affairs
• Personal Welfare
It is possible to take out one of either or both depending on your personal situation.
Jackson Barrett & Gass can advise individuals on the merits of each LPA as part of an overall lifetime planning process. Other considerations are often long term care planning & funding, which may also involve your financial advisor, as well as basic Inheritance Tax Planning (IHT).
It may also be the case that you have an Enduring Power of Attorney (EPA) in place but need advice as to whether this fulfils your requirements. In October 2007, EPAs were replaced by Property & Financial Affairs LPAs with the intention of reducing fraud, as several parties need to be notified of the LPA prior to registration. At the same time, a new type of LPA was created to cover decisions about Health and Welfare. EPAs signed before 2007 are still valid but cannot be altered in any way.
For more information about Lasting Power of Attorney (LPAs), please contact Paul Clark on 01625 523 988 or firstname.lastname@example.org