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  • Writer's pictureMiGem

LPAs - A vital part of Estate Planning

We all know that we should write a Will, in order to deal with our affairs if we pass away. But, what most people are not aware of is what would happen if they were to lose capacity, during their lifetime, without the appropriate planning in place. While a Will is important to look after the loved ones you leave behind, the decisions to be made when you lose capacity will directly affect your own lifestyle and wellbeing.

For this reason, planning for this eventuality should be a high priority.

A Lasting Power of Attorney (LPA) allows an individual to appoint a third party to make decisions on their behalf when they no longer have the capacity to do so themselves.

If a person doesn’t have LPAs in place and they become mentally incapacitated, their loved ones can face long delays and an onerous application to the Court of Protection, to gain access to their finances and make decisions on their behalf. During this process, assets are likely to be frozen, including joint assets, and this can cause significant problems for relatives who may need to make arrangements to pay bills or pay for any ongoing care needs.

There are two types of LPA - Property and Financial Affairs LPA and a Health and Welfare LPA.

Property and Financial Affairs LPA This gives the nominated attorney/s the authority to look after the donor’s finances – including buying and selling property, dealing with bills, running bank accounts and investing money. Health and Welfare LPA This gives the nominated attorney/s the authority to make decisions about medical treatment, or day to day care, on behalf of the donor in the event that they become unable to make those decisions themselves. Failing to plan is planning to fail. Let us help. MiGem Life Well Planned

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