As Wills, Trusts & Probate specialists we are often asked about the value and importance of creating a Lasting Power of Attorney (LPA) and whether it is necessary.
Here is an example highlighting the importance of having a LPA in place:
Hector, was recently involved in a car accident which left him in a coma. His wife, Belle, has found herself in difficult circumstances. As well as supporting her children and battling through the heartache of seeing her husband in this state, she is now being hounded by the mortgage provider and utility companies for arrears.
Hector would transfer money from his account into the joint account which would pay for the outgoings and bills as he managed the financial aspects of daily living and the upkeep of the house.
Belle is struggling to maintain these payments because she has used her savings for food and the children’s necessities and is now falling short.
The only option available for Belle to be able to access Hector’s account to pay the arrears is to apply to the Court to become a Deputy. This is a long process and very expensive. The average application takes a minimum of 6 months to be processed and fees are often in excess of £1,000.
How a LPA could have help
The above example could have been avoided if the couple had prepared a LPA, which is a legal document giving authority to another person to act on your behalf. The Property and Financial Affairs LPA would have meant that Belle could have paid the bills and managed Hector’s bank accounts. The couple could have appointed each other as attorneys and another person, such as a family member or friend, e.g. a person that they trust to act in their best interests. This would have enabled the other attorney to assist Belle if she required help.
Additionally, if Hector had a Health and Welfare LPA in place, Belle would have been able to make decisions on whether to give or refuse consent to medical treatment.
Once a LPA has been registered it can be safely stored away and you can continue with your daily routine, safe in the knowledge that the document is there just in case it is ever needed.
How Nelsons can help
If you would like to create and register a LPA or if you would like any further information, please contact us on 0800 024 1976 or via our online form and our Wills, Probate & Trusts team will be happy to help.