What is a Lasting Power of Attorney?
With the enactment of the need to have a power of attorney, it is essential to understand it. The Lasting Power of Attorney is a legal document that gives another person the ability to make decisions on behalf of the client. The lasting power of attorney is mainly made for individuals who may experience difficulty in decision making, dementia, or take long to make a decision. Several pros are associated with having a lasting power of attorney; this article will highlight them.
Over the years, the lasting power of attorney has been dormant as many people failed to understand why it is pivotal to have it. However, several acts have recently been enacted to ensure that every individual understands the LPA’s importance. The Mental Capacity Act 2005 is one of the campaigners of enforcing the law for individuals getting a power of attorney due to the increase in the number of people experiencing mental issues such as dementia.
A lasting power of attorney is powerful, and anyone who wishes to secure their future should get it. Redkite Solicitors Cardiff can give you a guide on how to do it if it is your first time. This is very important to anyone with businesses, overseas assets, and personal property.
Benefits of the Lasting Power of Attorney
There are several advantages to getting a power of attorney that are very important to anyone who wants to get one early.
Informed Decisions
As everyone gets older, the body ages as well, which doesn’t exclude our cognitive abilities. In most cases, the elderly can experience mental disorders, which may prevent them from making the correct judgement of the matter at hand. Therefore, getting another trusted person to hold a lasting power of attorney allows you to have better and informed decisions as they can fully comprehend the state at hand. This is one of the pros where the elderly should consider anytime they think of signing the document.
Cost-Efficient
Getting an LPA is very cheap because you do not have to get the deputyship order which is a long legal process that can be time-consuming. Once you get the lasting power of attorney, it automatically gives the person you have selected the deputy role; hence no need to apply for one. This reduces the legal fees charges and straining processes you need to follow anytime you want to make decisions.
You Can Select Your ‘Deputy’
The best thing about the lasting power of attorney is the ability to choose the person who will take over the decision-making and handle the cases. This opportunity allows you to select the person you believe is trustworthy and can handle or takeover your business. In most cases, with the deputyship order, the court will select for you the person who will take that role, and the ruling may be against your preferable option.
Early Preparation
While we do not expect to experience certain diseases, the world is unpredictable; therefore, being prepared for any situation is paramount. Organising for a lasting power of attorney is one way to be prepared for when you get older. Many cases of Alzheimer’s disease can affect your mental capability immensely, and this hinders proper judgement. If this happens, the current LPA you had prepared earlier will allow your business to run and control your property even in such a state.
You Can Choose When The LPA Is Effective
This is the biggest pro when it comes to the LPA, you can create the LPA when you are younger just in preparation for your retirement or old age, and you can choose when it can begin to work. Most people prepare it to ease the living situations for their partners, spouses, and siblings in the future.
Asset Protection
If you are an asset holder, the LPA is for you. This is one of the securities you need to prepare when you are doing your retirement plan. The lasting power of attorney allows you to secure the property with a trusted person if you lose critical physical abilities or get mentally incapacitated. This will allow them to have the last say each time an important decision needs to be made.
Legally Binding
Imagine losing all your property when you are old, or you cannot handle them due to different reasons? You can prevent this by getting the LPA because it is a legal document recognised by the court of law. This allows you to protect yourself from any fraud or theft of property.
