Who can set up a Lasting Power of Attorney (LPA)?
Anyone over 18 who can make their own medical, property, and financial decisions can arrange for someone else to make these decisions in the future.
The person who designates someone to make decisions for them is called the ‘donor’. The person granted this power is known as the ‘attorney’.
It’s important to note that a Property and Financial Affairs LPA becomes active only if you are unable to make these decisions yourself.
What does a Property and Financial Affairs LPA cover?
1. Managing Bank Accounts
The attorney can access and manage the donor’s bank accounts. Their responsibilities include making deposits, withdrawals, transferring funds to pay bills, and handling expenses to ensure the donor’s financial wellbeing.
2. Paying Bills and Expenses
The attorney must ensure the donor’s financial obligations are met. This includes paying utilities, rent or mortgage, and other financial responsibilities.
3. Making Investments
The attorney can make investment decisions for the donor. This may involve buying or selling stocks, bonds, real estate, or other investments to preserve or grow the donor’s assets.
4. Handling Property Transactions
The LPA can give the attorney authority to manage the donor’s property. This includes buying, selling, or renting property, which is especially important if the donor owns multiple properties.
5. Managing Debts and Loans
The attorney can handle the donor’s debts and loans, including negotiating with creditors and making decisions on repaying outstanding debts.
6. Collecting Benefits and Income
The attorney is responsible for collecting and managing the donor’s benefits, pensions, and other sources of income, ensuring the donor receives their entitled financial support.
7. Managing Tax Affairs
The attorney may need to file the donor’s tax returns, ensure timely tax payments, and handle other tax-related matters.
8. Making Legal and Financial Decisions
The attorney can make legal and financial decisions on the donor’s behalf, including entering contracts, managing business affairs, or pursuing legal actions as necessary.
9. Gifts and Donations
The LPA may specify whether the attorney can make gifts or charitable donations on behalf of the donor. This authority is often subject to legal limitations and should be carefully considered.
10. Record-Keeping
The attorney should keep detailed records of all financial transactions and decisions made for the donor to ensure transparency and accountability.
Would you like help setting up an LPA?
Our team at Burtons can help ensure that your Lasting Power of Attorney wishes are honoured and set up correctly. You can fill out our online contact form here and a team member will be in touch shortly.
