There may come a day when you are unable to make decisions for yourself. It’s a scary thought, but ideally, you’ll be ready for that moment and have power of attorney set up. At Ascent Financial Planning in North Wales, we help clients understand what power of attorney is and when they need it.
What is power of attorney? And what types exist?
A power of attorney is a legal document that appoints someone as your 'attorney' to make decisions on your behalf.
There are 3 types of power of attorney:
- lasting power of attorney (an LPA)
- enduring power of attorney
- ordinary power of attorney.
For most people, lasting power of attorney is the required document and it comes in two forms:
- one for making financial decisions
- one for making health and care decisions.
You can make one kind or both.
When to set up a power of attorney
You should consider setting up a power of attorney before you begin to have problems making decisions. You never know when your mental abilities might decline, so it’s best to anticipate illness and ageing, and plan ahead.
What happens if you don’t have a power of attorney in place?
A power of attorney involves hand-picking trusted people to be ‘attorneys’ and make decisions on your behalf. Without an LPA, a court will appoint a deputy to make decisions for you and you’ll have no say in who that person is. This person may then make decisions that are not in accordance with your wishes. As well as losing control over who makes decisions for you, you might find that there’s stress for you and your loved ones due to the lack of an LPA. Decisions regarding your care, finances, and treatment can take time because they have to go through court. This can create a long and complex situation.
How the process works in the UK
To make a Lasting Power of Attorney, you must be 18 or over and have the mental capacity to make your own decisions when you make your LPA.
- Select your attorney(s).
- Complete the forms to appoint the person (or people) you’ve picked as attorney(s).
- Register your LPA with the Office of the Public Guardian (this takes 8 to 10 weeks).
- Pay the £92 fee to register an LPA (unless you get a reduction or exemption).
- You can cancel your LPA if you don’t need it anymore or if you want to create a new one.
Choosing the right person to act on your behalf
Picking an attorney is a crucial decision when it comes to your LPA.
Your attorney could be:
- A family member: a spouse, partner, or adult child.
- A close friend.
- A professional, such as a solicitor or financial advisor.
The important thing is to pick someone who is dependable and responsible. You can choose more than one attorney.
Next steps
At Ascent Financial Planning, we help clients across North Wales with future planning. For a discussion about where to get assistance, get in touch with our team today.
Powers of Attorney are not part of the Quilter Financial Planning offering and are offered in our own right. Quilter Financial Planning accept no responsibility for this aspect of our business.
Powers of Attorney are not regulated by the Financial Conduct Authority
