DIY Lasting Powers of Attorney can often be problematic. Unlike Wills, mistakes with LPAs cannot be easily amended. Here are the Top 5 reasons why it is advisable to have a Lasting Power of Attorney drafted by a professional.
- Avoiding Errors and Delays
LPAs must meet specific legal requirements to be valid. Errors can lead to delays, additional cost or outright rejection by the Office of the Public Guardian (OPG).
Even minor mistakes, such as incorrect signatures or unclear language, can invalidate the document. You cannot amend an LPA, it must be revoked if it is incorrect. This will mean that attorneys may not be able to act before the updated LPA is registered, which could be several months.
We have experience in drafting LPAs and can ensure the document is completed and executed correctly the first time, minimising the risk of costly errors and delays that may arise from self-drafted LPAs.
- Clarity
An LPA grants substantial authority to the appointed attorney(s). Ambiguity in the language can lead to misinterpretation or even misuse of powers. We are skilled in drafting precise and legally sound instructions, ensuring that each power granted is clearly outlined and that the LPA reflects the exact wishes of the person making it. Without this clarity, there is a risk that attorneys might act in ways that differ from the intentions of the person who created the LPA.
If someone wants to impose limits on how their finances are managed or restrict certain health decisions, we can incorporate these nuances, tailoring the document to the individual’s circumstances.
- Limiting Abuse
LPAs, particularly those dealing with financial matters, carry a risk of misuse or abuse, as the appointed attorney(s) may have control over significant assets or personal care decisions. We are trained to recognise warning signs and mitigate risks of abuse, including guiding clients on selecting trustworthy attorneys, discussing accountability measures and even structuring the LPA to include specific safeguards. For example, we can suggest appointing more than one attorney, setting up “joint” or “jointly and severally” decision-making structures or adding provisions that require periodic reviews.
By drafting your LPAs, you are more likely to understand the implications of each decision, which can help prevent potential exploitation or abuse down the road.
- Legal Advice on Complex Situations
In some cases personal, family, or financial circumstances may complicate the LPA process. For example, business owners may need to address what happens to their business interests or individuals with blended families may want to ensure specific considerations for children from previous relationships. We can offer advice on structuring the LPA to reflect these complexities appropriately, balancing competing interests and providing a document that stands up to scrutiny.
- Changing Legislation
Two types of LPAs are available: one for property and financial affairs and one for health and welfare. Each type has its own rules and implications – and many people are unsure of the differences. We can advise on the benefits and limitations of each.
Laws and regulations surrounding LPAs may change over time. We stay updated on relevant legal developments, which can impact how LPAs are drafted and implemented. We can ensure the document is not only legally compliant today, but also positioned to remain effective in the future.
What next
While a do-it-yourself LPA may seem like a straightforward and cost-saving option, the risks and complexities involved make a strong case for involving a legal professional. Our expertise in drafting LPAs can provide peace of mind, ensuring that the document is clear, legally sound and properly structured to reflect your wishes, ultimately helping to protect you and your assets.
For more information and to speak to one of our experts, please contact us below.