What Kate Garraway can teach us about power of attorney
One of the unfortunate facts of life is that none of us has a crystal ball to tell us what our future holds.
We cannot know, for example, if a time may come when we or our loved ones may be unable to make decisions for ourselves.
This topic took on a higher profile in recent months, when TV’s Good Morning Britain presenter Kate Garraway revealed the ‘financial mess’ she is facing, since her husband had to go into hospital long-term with Covid.
As Kate explained: “One of the practical problems – which a lot of people would have experienced if they’ve got the absence of someone in their life – like many things, the car is entirely in Derek’s name, the insurance is in Derek’s name, a lot of our bank accounts. There are lots of financial goings on which are making life very complicated because I can’t get access to things because legally, I haven’t got power of attorney.”
These unexpected situations prove how important it is to plan ahead. Naturally, it’s one of those events we do not like to think about, but one which we must accept could happen, someday.
This is why a lasting power of attorney or LPA is so important.
What is a Lasting Power of Attorney?
A lasting power of attorney is a legal document that allows a person to appoint one or more people (the ‘attorneys’) to help them make decisions, or to make decisions on their behalf.
If you or a loved one sets up an LPA, it gives you more control over what happens to you if you have an accident or an illness and cannot make your own decisions.
There are two types of LPA, one covering financial decisions and one covering health and welfare. If you wanted to set up both, you can nominate different attorneys for each one.
It's not just for older people
However, we shouldn’t fall into the trap of thinking that a power of attorney is something for ‘older people’, or something we can leave to later life. Many of us associate it with the ‘care home’ stage - end of life or dementia, or with things that we can see coming, which give us time to take evasive action.
Nothing could be farther from the truth.
Kate’s case above shows the type of sudden, unexpected event that can result in financial problems, if no lasting power of attorney is in place.
It’s not forever
Having an LPA doesn’t mean you suddenly lose all control forever. Your attorney would only ever make decisions on your behalf if you were unable to make them at the time they need to be made.
Suppose we were involved in a serious car accident, perhaps we spend time in a coma, or are otherwise incapacitated? Your attorney would start looking after your affairs while you were in the coma. But once you were fully recovered, you’d go back to making your own decisions again.
Different types of LPA
An LPA can also be useful if you are physically, but not mentally affected by a condition or a health setback. In this case your attorney will carry out your wishes about your finances or property, doing the leg work and visiting your solicitors and others on your behalf.
As we say, these are not the most pleasant thoughts, but if we grasp the nettle and put measures in place to plan for them now, then peace of mind can follow.
Imagine how much stress could be taken out of such tragic situations, if an LPA were in place. In these extreme circumstances, financial and other decisions could still be made.
Even if you are still unsure whether a lasting power of attorney is for you, a chat with us is still worthwhile. We can advise you on your own particular situation, and explain the benefits we have seen an LPA bring to people in similar situations in the past.