Who’s got the POWER!
Is it who YOU would choose?
All of us are constantly making financial decisions whether we realise it or not:
- What bills to pay
- Is it worth switching Utility providers
- Shall I top up my pension fund or invest elsewhere
- Shall I save for a big holiday this year
But what happens if you suddenly can’t do this; due to physical or mental incapacity.
We often think about getting insurance to cover the loss of income but who will actually manage your money?
If you suddenly lose capacity to deal with your affairs all your bank accounts are frozen – including, in many cases, joint accounts. Nobody will be able to access your money, even those who are financially dependent on you.
So what happens?
Your loved ones will have to apply to the court of protection to become what’s known as your ‘Deputy’. This is a costly, cumbersome process which may take up to 6 months.
Why does this matter?
- No one can access your money until the deputy has been appointed
- The person the Court select to be your Deputy might not be who you would choose
- The Court may apply restrictions on what the Deputy can or can’t do
- Often the Deputy is supervised by the Court incurring even more cost and stress.
But all this is simple to avoid if you make a Lasting Power of Attorney (LPA).
After a Will an LPA is arguably the most important document you can have. It gives somebody YOU choose (your Attorney) the legal power to look after your affairs if you can’t.
We all hope that we will not have to use an LPA but the consequences of not having one are too big to ignore.