One of the fastest growing health issues in UK society is the seemingly relentless rise in dementia. This terrifying category of diseases combined with an older population means that it’s never been more important to get your affairs in order as early as possible. As part of Dementia Action Week, we have put together two articles outlining important estate planning considerations for those with Dementia. Our first article focuses on Wills and is available here. This second article focuses on the importance of having Lasting Powers of Attorney in place.
Understanding Lasting Powers of Attorney
A Lasting Power of Attorney (referred to as an LPA) is a legal document that allows you to appoint one or more people to assist with or make decisions on your behalf if you become unable to do so. These individuals, known as attorneys, are often close relatives or trusted friends and do not need legal expertise. There are two types of LPA:
- Property and Financial Affairs: This allows your attorney to manage your finances, such as paying bills and making investment decisions.
- Health and Welfare: This allows your attorney to make decisions about your health and welfare, including medical care, moving into a care home, or consenting to or refusing life-sustaining treatment.
The important point to note is that your attorneys will only act on your behalf if you want them to or if you lose capacity and you need them.
What happens if I don’t have Lasting Powers of Attorney in place
If you lose mental capacity without having LPAs in place, your loved ones will need to apply to the Court of Protection to be appointed as Deputies to manage your affairs. This can take between 12-18 months and during this time, no decisions can be made and your assets will be frozen, causing undue stress at an already difficult time for your family. It is also very likely that the court would only appoint a deputy in relation to Property & Financial Affairs and not Health & Welfare.
I have been diagnosed with Dementia but I do not have a power of attorney – what can I do?
This depends on your mental capacity which will be determined by your ability to understand the document, the power you are granting under it and the types of decisions which can be made under the power of attorney. If you do still have mental capacity, it is strongly recommended to prepare a LPA as soon as possible to ensure that your chosen loved ones appointed, known as attorneys, can make decisions for you if you were to lose mental capacity in the future.
What next?
If you have been diagnosed with dementia, reviewing or preparing your Lasting Powers of Attorney is essential. It is advisable to consult a solicitor specialising in later life planning to receive accurate and personalised advice. Speak with one of our experts on setting up Lasting Powers of Attorney here.