Legal & Financial matters
Legal and Financial advice
Legal Planning is essential months or even years before any action is required, having plans ready will save you heartache and in many instances, careful planning can save the family money.
When you need guidance on matters such as wills, powers of attorney and estate planning, then it may be worth seeking the help of a trusted solicitor or qualified financial advisor.
Lasting Powers of Attorney
You may have heard the term Lasting Powers of Attorney. These enable you to entrust decisions about your welfare, medical care and financial affairs to someone else. If the day comes when you are no longer able to make these decisions for yourself, this will allow your nominated person to do this for you. Note that Lasting Powers of Attorney have to be registered with the Office of the Public Guardian to be valid.
Advanced Directive & Advanced Decision
You may also have heard of the Advance Directive and Advanced Decision (sometimes known as a living will). Both allow you to set out your wishes with regards to future treatment, however only the Advance Decision is legally binding.
Advice when you need care
Should you require long term care then there is the possibility that you (your family) may be able to claim benefits to assist with the cost of such care. Solicitors can help with this but do make sure you have an idea of their fees in advance. Alternatively try contacting your local Citizens Advice Bureau (CAB) as this is an area that they will probably have helped many people with previously. There are lots of options available to you wish to look after the funding of your own care. Should this be the case then it is wise to seek independent Financial Advice.
Care costs can be significant and long-lasting, so some expert advice is essential. Look for Financial Advisers who are accredited with the Society of Later Life Advisers. You will probably qualify for a free initial consultation. It may be really helpful if you chat about your plans with family or friends before hand, just to make sure you actually need to take on a financial adviser.
Power of Attorney
Nobody likes to think about the realities of old age, or about potential accidents or illnesses. But the truth is that life is dangerous, and each of us could fall ill or suffer an accident at any time.
Lasting Power of Attorney is one way that we can all help to plan for this.
Losing your ability to make decisions for yourself is a scary possibility. But the thought of those decisions being made in a way that you would not have chosen is, perhaps, even worse. Lasting Power of Attorney provides us all with a simple way of ensuring that, if we are no longer capable of making decisions, it will be a trusted friend or family member who will take responsibility instead.
What is Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a powerful legal document that allows an individual to nominate someone to make decisions on their behalf. This individual is known as an attorney. Lasting Power of Attorney is useful for those who want to ensure that their wishes will be met if a time comes when they are no longer capable of making decisions by themselves.
Why would I use LPA?
A Lasting Power of Attorney is an excellent way to plan for the future. None of us likes to think about the worst case scenario, but it is perfectly possible that at some point in our lives we will no longer be mentally capable of making decisions about things like money or our own welfare. Lasting Power of Attorney lets you nominate a trusted person to make those decisions for you. It is also considered to be a very safe way of planning (and therefore giving you peace of mind). An LPA must be registered with the Office of the Public Guardian, and there are very strict rules regarding the way in which they are made and the points at which they can be used. Nominated attorneys are legally obliged to act in the best interest of the person who made the LPA.
What are the two types?
There are two separate types of Lasting Power of Attorney. Each of these types has a distinct set of uses.
The health and welfare Lasting Power of Attorney is used by those who wish to nominate someone to make decisions regarding their medical treatment. This type can only be used once the individual who had made the LPA is considered to be no longer capable of making those decisions themselves.
The property and financial affairs Lasting Power of Attorney is used by those who want someone to make financial decisions for them. These decisions could take a number of different forms. For example, the nominated attorney might decide whether or not to sell shares, or how to allocate money in order to ensure that bills are paid.
In contrast with the health and welfare LPA, a property and financial affairs LPA can be used at any time – even if you still have the mental capacity to make decisions for yourself. Alternatively, you can stipulate that the LPA only be used once you are no longer capable of making those decisions.
Making a Will
Your will lets you decide what happens to your money, property and possessions after your death.
If you make a will you can also make sure you don’t pay more Inheritance Tax than you need to.
You can write your will yourself, but you should get advice if your will isn’t straightforward.
You need to get your will formally witnessed and signed to make it legally valid.
If you want to update your will, you need to make an official alteration (called a ‘codicil’) or make a new will.