A Lasting Power of Attorney is a legal document that allows your client to select an attorney to make their decisions on their behalf. This could be for a number of instances such as selling property when unavailable, losing mental capacity or management of assets.

There are two types of Lasting Powers of Attorney. The first is the Property and Financial Affairs. This gives the attorney power to pay bills, buy and sell property, manage bank accounts and deal with investments.

The second is Health and Welfare, which grants the attorney the ability to make medical decisions on your clients’ behalf.

Whichever LPA, the attorney must act in the best interest of your client when making any decision about either affairs. The power is granted when legal document states, usually when they lose mental capacity authenticated by a certified doctor.

Many people feel they may not need an LPA because they have joint accounts with their spouse or partner. The bank or building society has a duty to freeze an account until they are satisfied that the interests of the incapacitated party are being met. The Banking Association Handbook states:

‘If the other joint-account holder becomes mentally incapable, the bank or building society must get an order from the Court of Protection (in England and Wales), which protects the rights of mentally incapacitated people, before they can let you use the account.’

Situations such as Michael Schumacher have shown the need is out there for these. With only 6% of the population having them, increasing mental health problems and us living longer they are essential protection products. These products are not just for the elderly.