TV personal finance guru Martin Lewis says Lasting Power of Attorney is more crucial than a will for families – and Liverpool law firm GAD is backing his call for adults of all ages to consider setting one up. Tony McDonough reports
Adults of all ages should consider setting up a Lasting Power of Attorney (LPA) to avoid a “nightmare” financial crisis for relatives, says a leading Liverpool lawyer.
Ian Sturgess, head of private client at Gregory Abrams Davidson (GAD) is backing a recent call by TV personal finance guru Martin Lewis who claimed an LPA is more crucial than a will.
LPA allows trusted people to manage your finances, or critical medical decisions, if you were to suddenly lose mental capacity following an accident or a severe stroke.
There are two types of LPA… Property and Financial Affairs where you appoint people you trust to look after your finances, and Health and Welfare which allows nominated people to look after your medical and welfare requirements.
Without an LPA in place, warned Martin Lewis, families may not be able to immediately access bank accounts to pay the mortgage or other essential bills. Getting access can involve a long and complex legal process.
“If you don’t have a Power of Attorney in place, and you were to have an accident tomorrow so you couldn’t look after yourself with your faculties gone, or a severe stroke, then it is frankly a nightmare to go through the process of someone else trying to take over your finances,” said Martin.
People can apply for an LPA themselves through the UK Government website although there are specialist lawyers, such as Ian and his team at GAD, who can help with the process and make sure it is done properly.
“No one wants to think about themselves or one of their loved ones in a situation where they are incapacitated and unable to manage their own affairs,” Ian told LBN. “But sadly these are everyday occurrences and the cost of an LPA is low compared to the chaos that could ensue if there isn’t one in place.
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“Without an LPA, your bank accounts can be frozen, and assets locked away if you lose capacity, leaving loved ones to face a much more costly and slow Court of Protection process.
“It is a pretty straightforward process and once it is done it can offer some peace of mind in case the unthinkable were to happen. It’s a very sensible piece of advice from Martin and we hope lots of people take heed.”
As well as handling Lasting Power of Attorney, GAD’s private client team also handles trusts, Court of Protection and Deputyship and probate and estate administration.