Simple legal process can give you peace of mind – whatever your age, says financial expert
A leading financial expert is urging people to consider a simple legal step that could provide valuable protection – and peace of mind – if they are left unable to make decisions for themselves.
Mike Jordan, who founded Jordan Financial Management more than 20 years ago, says simply naming an LPA – a Lasting Power of Attorney – is a legal process often associated with the elderly, which could prove invaluable to people of any age.
Mike (pictured) said: “An LPA gives someone who you trust the ability to make decisions on your behalf if you’re unable to do so. When you think about the different things that could happen in life – from ill health to accidents – this is actually not just something that can benefit the elderly.
“It could be seen as a ‘belt and braces’ approach that ensures loved ones can act on your behalf, if the worse happens and is particularly relevant to business owners as a business could fail while the owner is unable to act if, for example, the bank account can no longer be accessed or decisions made.”
Mike added that there is a common misconception that a person’s next of kin is automatically empowered to make decisions on their behalf – but it’s not necessarily true, even for spouses or civil partners.
Mike said: “With no LPA in place, there may be no one to make health decisions if you’re ill or manage your financial affairs if you are not able to.
“It can also lead to complications if you have joint assets with someone else - for example, joint bank accounts may end up frozen until your partner gains control through the courts which can take many months.
“This could add even more misery to an already difficult situation. If people realised how straight forward it is to name an LPA, I’m sure more people would consider doing it.
“As a financial advisor, I understand how important it can be to have things in place like this to give people peace of mind.”
There are two different kinds of LPA. A health and welfare LPA gives someone the ability to make decisions related to your daily routine, medical treatment, or moving into a care home, while a property and financial affairs LPA will cover areas like managing your bank account or selling your home.
If family or friends cannot fulfil the role of attorney, you could choose a professional, such as a solicitor.
Mike added: “It’s a relatively simple process, that involves either using a solicitor to draw up the documents or you can instead download forms from the Office of Public Guardian and pay a fee of £82 for registering one LPA. So, if you need to register both a financial and health LPA, the cost will only be £164.
“I think it’s something that many would consider doing, for the benefit of their loved ones, and I’d advise anyone interested to get professional advice.”
