Have you ever wanted to understand more about a Lasting Power of Attorney, also known as an LPA as it relates to Care? This is a topic which may be unfamiliar to some people and can seem an overwhelming topic to discuss with your elderly parents or loved ones. Chris Daems from Cervello Financial Planning wants to help make this subject simple and more accessible and explains some of the basics of how to have a conversation with your parents about Lasting Power Of Attorney (LPA).
A Lasting Power of Attorney can be introduced to families at any time for medical reasons i.e. if a parent has lost capacity to deal with their finances. This could be because of the onset of Dementia for example.
It is the responsibility of the parent to introduce a Lasting Power of Attorney at this stage, not a loved one. There are two types of Lasting Power of Attorney that can be put in place in the UK:
If both parents are still alive, with perhaps mum or dad in a care home environment then it’s really important to have a conversation with both of them and relay how vitally important it is to keep their hard earned wealth within the family (as opposed to the Government Treasury).
You also may need to consider who you would want to control your money if anything happened to you. If a Lasting Power of Attorney is not in place, then you’re at risk of the courts (UK Government) taking control. If the courts take control, this can be a more drawn out and time consuming process which might impact the ability for decisions to be made with regards to your health of finances.
If both parents are still alive – you need to understand who they would wish to look after their money if something was happen to them. The key is being prepared ahead of when this is needed. Which is why this can be a challenging conversation.
If one parent has already passed away you may wish to take an approach of explaining to the remaining parent that if anything did happen, you would not be able to help them with their financial affairs or any medical decisions at all, unless a Power of Attorney was in place.
If no Power of Attorney was in place, a member of the family can apply to be a deputy (to the court of protection), and this is a minimum nine month process and in the meantime, they would have no access to the bank accounts or to support with any financial decisions.
This LPA can be used to give a family member or loved one (attorney) the power to make decisions about things like:
A health and welfare LPA can only be used when you’re unable to make your own decisions.
Use this LPA to give a family member or loved one (attorney) the power to make decisions about your money and property such as:
A property and financial affairs LPA can be used as soon as it’s registered, with your permission. If later, then you can decide the criteria for when this will be.
Get in touch with your local Radfield Home Care office today and find out more about the support we offer and the difference we can make.