Why you and your spouse need to create Lasting Powers of Attorney

According to research conducted by Scottish Widows during Free Wills Month in March 2023, the rate of people creating powers of attorney is low compared to other methods of financial protection. The research concluded that although 95% of UK adults understand the concept of a power of attorney and 75% believe having one is important, there is a gap in understanding how the document works and how it is utilised in practice.

Furthermore, it was found that 76% of people in a relationship have discussed Wills and trusts with their partner or spouse but only 41% of married couples have put in place a power of attorney.

Of those surveyed, 24% did not intend to set up a power of attorney. However, for those millions of UK couples without a power of attorney, they are at risk of being unable to access their spouse’s finances in the event that they should lose their mental capacity. In the case of an emergency or an unexpected incapacity, they might also be prohibited from making important health and welfare decisions for their partner.

What are the different types of Power of Attorney?

Lasting Powers of Attorney enable you to designate an individual – your attorney – to make decisions regarding finances, property, welfare and health on your behalf. There are two types of Lasting Power of Attorney:

• Health and Welfare LPA

This concentrates on decisions regarding well-being in the case of incapacity or severe illness. An LPA might cover care provision, care home arrangements, deciding on appropriate medical care or making medical decisions.

• Property and Finance LPA

This concentrates on decisions regarding someone’s finances and assets in the case of incapacity or severe illness. This LPA might cover settling bills, managing finances or selling or disposing of assets in order to generate funds.

Why should I make a Lasting Power of Attorney?

If you lose mental or even physical capacity as the result of an accident or illness such as dementia and you do not have a Lasting Power of Attorney, your loved ones may be precluded from making important welfare decisions on your behalf or managing your affairs. In this circumstance, someone would have to apply to the Court of Protection on your behalf. The Court of Protection would appoint a Deputy to handle your affairs – but that might not be the person you would choose yourself and that person’s decisions might not align with your own personal preferences. Applying to the Court of Protection can also be cumbersome, costly and time-consuming.

For couples, it is essential to understand the importance of establishing Lasting Powers of Attorney. This will allow them to ensure that they can effectively manage and make decisions regarding each other’s welfare and finances when required. By creating an LPA, not only will the couple have peace of mind but they will also be protected against any potential complications that could arise in the case of an accident, illness or other unforeseen circumstance. They can also appoint their children as replacement attorneys for when their partner is no longer around.

Furthermore, single people should not rule out creating a Lasting Power of Attorney. Indeed, their circumstances may be more urgent if they do not have a partner or children.

Solicitors for Lasting Powers of Attorney

At Beverley Morris & Co., our solicitors, based in Blackheath, support clients across South East London and further afield with setting up their bespoke Lasting Powers of Attorney. Our advice is unbiased and conclusive, allowing our clients to ensure they are fully informed throughout the process.

To ensure that an LPA is accepted when registered with the Office of the Public Guardian (OPG), it is essential to ensure that it has been professionally prepared. This means that not only is it accepted by the OPG but it is recognised by other relevant institutions such as banks and building societies without any issues.

To speak to our private client solicitors about setting up your Lasting Power of Attorney, please call 020 8852 4433 or email enquiries@beverleymorris.co.uk.