What You Need To Know
- The value of making a Lasting Power of Attorney (LPA) lies in its anticipatory nature. It allows you to plan ahead and appoint someone whom you trust (called the donee) to manage your finances and your welfare if you should suddenly become mentally incapacitated.
- It is therefore absolutely essential to ensure that your welfare and finances will be looked after if you are mentally incapacitated.
- Our lawyers have been helping clients draw up their Lasting Power of Attorney (LPA) ever since the scheme was launched.More people are signing up to do their Lasting Power of Attorney after a spate of recent high publicity cases in which the elderly purportedly ‘gave’ away their assets and had no one to take care of them.
- The LPA kicks in once you lose mental capacity. This unlike a will, which comes into effect only after you die.
- The donee (who should be a person you trust) can decide on your personal welfare matters, including where you should live and day-to-day care decisions, and your property and financial matters.
- All LPA applications have to be witnessed and certified by a practicing lawyer, a registered psychiatrist or medical practitioner accredited by the Public Guardian.
In summary, everyone should make a LPA because:
Without a LPA:
- You will find your bank accounts frozen. Your family members cannot make decisions regarding your personal welfare and your business and financial matters.
- If your family is dependent on you, they cannot access your funds to pay for your hospital bills, mortgage, etc.
- Your family has to apply to court to appoint someone as deputy to take charge of your affairs. This court process is costly and takes time.
With a LPA:
- You will be taken care of.
- Your family members who are dependent on you will be taken care of.
- There is no need to spend time and money to apply to court for deputies to act for you.
Making a Lasting Power of Attorney is inexpensive and there is no reason to delay making one.
Everything you need to know about the Lasting Power of Attorney