Why Everyone Over 40 Needs a Lasting Power of Attorney (LPA)
I recently asked Trustee Services Executive, Bob Bullamore, what age someone should be to set up a Power of Attorney, as part of an interview for the Summer Edition of Confidant. This is what he said in reply;
So, in this article I take a look at LPAs and some of the common pitfalls to watch out for when setting one up.
The nuts and bolts
Who can create one?
What is the process?
Who can be my attorney?
Where you appoint more than one attorney you will also need to decide whether they can act independently (“jointly and severally”) or need to act in concert (“jointly”). This isn’t always clear cut – although someone may think they’d prefer, say, two children to act jointly, if those children don’t get on well, then the decision may create a big headache at the point the LPA activates.
Furthermore, you need to decide when an LPA will activate. For health and welfare matters, the law requires that you are deemed incapable of making your own decisions, usually by a doctor. However, for a financial and property LPA you can opt for it to activate immediately, where for example you want someone else to be able to take decisions for you about property, investments, your bank accounts or anything else.
Here are some guidelines;
Setting up an LPA successfully is quite a lengthy process involving some important decisions and a fair amount of administration. For that reason it is a document that many people leave until too late to set up. Please speak to your Investment Manager to find out more about these important documents. You may also wish to watch the video that accompanies this article.