Consequences of not having a Property & Financial LPA
In the UK, a Property and Financial Affairs Lasting Power of Attorney (LPA) allows you to appoint someone to manage your finances and property on your behalf if you become unable to do so yourself. However, if you do not have a Property and Financial Affairs LPA in place, there can be serious consequences for you and your loved ones.
What decisions can be made by on your behalf with a Property and Financial Affairs LPA?
A Property and Financial Affairs LPA allows the person you have appointed (known as your attorney) to make decisions about your finances and property, including paying bills, managing your bank accounts, dealing with your investments, and selling or renting your property.
When does it come into effect?
A Property and Financial Affairs LPA can only be used once it has been registered with the Office of the Public Guardian and you have lost capacity to make decisions for yourself. You can choose when you want it to come into effect, either immediately after registration or at a later date, such as when you lose capacity.
What is the cost to register an LPA and what is the turnaround time?
The cost of registering an LPA is currently £82 per document. The turnaround time for registration can vary, but it typically takes between 8 and 10 weeks. It is important to note that the registration process can take longer if there are errors or issues with the application.
What happens if you don’t have a Property and Financial Affairs LPA?
If you become unable to manage your own finances and property and do not have a Property and Financial Affairs LPA in place, your loved ones may need to apply to the Court of Protection to become your deputy. This can be a complex, time-consuming and expensive process that can take several months to complete.
In the meantime, your bank accounts may be frozen, your bills may not be paid and your property may not be managed, which can cause a significant amount of stress and financial difficulty for your loved ones.
Can someone to make decisions on my behalf after I have lost capacity if I do not have a Property and Financial Affairs LPA?
Without a Property and Financial Affairs LPA, nobody has the legal authority to make decisions on your behalf. This can be particularly problematic if you lose capacity unexpectedly or suddenly, such as due to an accident or illness.
In such situations, your loved ones may have to apply to the Court of Protection for a deputyship order, which can be a time-consuming, stressful and costly process. Moreover, the Court of Protection may not always appoint the person you would have chosen to manage your finances and property.
In conclusion, not having a Property and Financial Affairs LPA in place can have serious consequences for you and your loved ones. By appointing an attorney through an LPA, you can ensure that your finances and property are managed according to your wishes if you become unable to do so yourself. The cost of registering an LPA is relatively low compared to the cost and complexity of applying to the Court of Protection, making it an important investment in your future and the future of your loved ones.
If you would like to discuss setting up an LPA, writing or reviewing you Will, or general Estate Planning advise please contact us.
