Do things your way

One of our most fundamental rights is the freedom to manage our affairs how we see fit, making key decisions that shape the way we live our lives. But what happens when you're no longer deemed capable of thinking for yourself? Who makes these decisions for you and at what cost?

According to Mark Francis of leading law firm, Tolhurst Fisher, this is why so many minds are made up on lasting powers of attorney (LPA).

A lasting power of attorney is a legal document that lets you nominate who should make decisions about your finances, property and personal welfare on your behalf. For just a small cost, it offers priceless peace of mind, guaranteeing your life is lived by your rules, whatever your state of mind.

However, because any errors in the document are only likely to be discovered once it's too late, there are no second chances. This is why it is critical to seek specialist legal advice to ensure any LPA is drawn up correctly first time round, with no risk of it being thrown out by the courts.
Without a valid LPA, the only option available to family or friends is to apply to court to become a deputy - a cumbersome and highly expensive process that can quickly drain finances and hinder critical decisions. The court costs for this alone can outweigh the price to create an LPA - but that is just the start.

An appointed deputy is required to file annual accounts and any significant transaction must be authorised by the court. This not only considerably slows down any decision making but can severely limit options.

For example, if the individual needed to be placed into residential care, they may have to sell a property to finance it. With approval needed from the court, it would limit interest in the property, especially for buyers carrying chains, all eager to move. More importantly, somebody will have to finance the residential care in the mean time, with no idea for how long. With an LPA, such decisions can be made swiftly, with minimal complication.
For those with specific wishes, preferences or personal views, the LPA can include as much or as little guidance as necessary. So, for example, an animal lover might state that shares cannot be bought in companies that conduct animal testing. The scope for input, within legal parameters, is endless.

Perhaps the most poignant inclusion falls under the personal welfare power of attorney, in which the nominated attorney can consent to life sustaining treatment. This can cover such things as the use or refusal of life support and avoids the insensitive handling of medical treatment.
While LPA has obvious appeal to people over fifty years of age, it is an invaluable insurance policy that should be considered by everybody. After all, accidents do happen. For mentally capable elderly people looking to slow the pace of life down, the LPA can be activated to let the attorney(s) manage their finances in a world which often assumes we are all computer literate and able to recall ten digit passwords.

LPAs can be set up to cover medical affairs or financial affairs separately, or both combined. They have no time limit on them and can be drafted to nominate replacement attorney(s).

Lasting powers of attorney replaced enduring powers of attorney (EPAs) in 2007, when the Mental Capacity Act 2005 came into force. EPAs made prior to that date continue to be effective but should be reviewed from time to time.

Tolhurst Fisher's trust team have extensive specialist knowledge of lasting powers of attorney. This includes providing in-depth advice on any aspect of the document, no matter how sensitive.