Why A Lasting Power of Attorney Isn’t Just For The Elderly

When we think of estate planning – including Wills and a Lasting Power of Attorney (LPA) – we often associate it with the older generations. But the reality is that legal documents like an LPA can only be made when an individual has the mental capacity to do so – and waiting too long can cause legal issues down the line. 

So when exactly should you make a Lasting Power of Attorney, and why are LPAs for young adults becoming increasingly common? Let’s run through everything you need to know, so that you feel confident in protecting the best interests of yourself and your family. 

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What Does A Lasting Power Of Attorney Mean? 

In the simplest terms, a Lasting Power of Attorney is a legal document that allows an attorney (often a solicitor, family member or both) to act on somebody's behalf when the individual no longer has the mental or physical capability to do so. There are two main types of LPA that you might come across: 

• Property & Finance: These LPAs cover your finances, and allow a solicitor/family member/both to manage bank accounts, pay bills, and buy or sell property on your behalf
• Health & Welfare: These LPAs cover your general quality of life, and allow a solicitor/family member/both to make decisions about your care 

While LPAs can come into effect from the moment they’re created (if you agree this with your solicitor), the majority are executed when an individual loses mental capacity. And this is an important stipulation when deciding when you should make your own Lasting Power of Attorney. 

When Should You Make A Lasting Power Of Attorney? 

A common cause of deteriorating mental capacity is dementia, which unfortunately affects nearly 1 million adults in the UK. However, of that figure, an estimated 70,800 individuals started experiencing symptoms before they reached the age of 65.  

This means that younger generations are suffering from a lack of mental capacity at earlier ages than expected, which is why LPAs for young adults can be an important consideration well before you’d typically think about this kind of legal document. 

Don’t forget that an LPA doesn’t grant immediate decision-making authority to your attorney. Instead, it provides peace of mind that if you eventually lose mental or physical capacity – even if this occurs years in the future – an objective, experienced authority can make decisions that are in your best interest. 

What Are The Risks Of Not Having A Lasting Power Of Attorney? 

We often think about sorting out a Will as we get older, but a Lasting Power of Attorney doesn’t always come into consideration. However, if you fail to set up an LPA while you still have the capacity to do so, the process can become more complex once you lose this capacity. 

That’s because your family (or solicitor) will then need to appeal to the Court of Protection, which is often a much more complex and costly procedure than drafting a simple legal document. Through the Court of Protection, your representative will need to provide evidence around your situation and needs, and it’s then up to the Court to decide on what would be best for you. This comes with a few challenges: 

• The Court doesn’t know you: Although the Court of Protection will consider your best interests, the reality is that your solicitor and family members know you much better, and will be able to make decisions tailored specifically for you 
• The process is longer: Applying for a Deputyship through the Court of Protection (which allows a Deputy to make decisions on your behalf) can take between 4-6 months. An LPA, on the other hand, is effective from the moment you lose capacity
•  It’s expensive: Registering a Lasting Power of Attorney with the Office of the Public Guardian involves a one-off fee of £92. However, applying for Deputyship through the Court of Protection requires an initial fee of £432, and ongoing fees after that

Speak To Estate Planning Experts Today

It’s never too early to consider a Lasting Power of Attorney, which is why you should speak to estate planning professionals as soon as possible. 

If you’d like to create your own LPA, get started by calling our team on 01206 733733, emailing us at enquiries@sparlings.co.uk, or visiting our offices in Colchester, Manningtree, or Frinton-on-Sea.