Is it time for you to set up power of attorney?

CAMILLA FOSTER LEARNS HOW TO ENSURE YOUR AFFAIRS ARE MANAGED IF YOU CAN NO LONGER DO IT

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A LASTING power of attorney is a legal document that appoints someone your 'attorney' - to make decisions on your behalf.

Making big decisions, such as setting up a lasting power of attorney, can feel intimidating, but it's a vital document to have in place.

To help clarify the legal details and demystify the process, we spoke with Lara Barton, partner in the private client department at Hunters Law LLP.

"A lasting power of attorney (LPA) is a document whereby somebody appoints an individual or individuals to make decisions on their behalf when they no longer have the mental capacity to make those decisions themselves," says Lara.

"It comes into effect when someone has had a dramatic health issue, like a stroke, for example, or they've had an accident and are in a coma, or it could be because of some sort of degenerative disease whereby they're slowly reducing capacity such as dementia.

"Alternatively, it could be that someone has gone into hospital for quite a big operation and they will be out of action on heavy medication for a while and can't make decisions during that period."

There are two types of LPA: a health and welfare LPA for decisions about your medical care, where you live, and your daily routine, and a property and financial affairs LPA for managing your money, bank accounts, property, and other assets, explains Lara.

You can appoint the same person to act as attorney for both your health and welfare and your property and financial affairs, or you can appoint different people for each.

"It's important to think about who you trust the most in terms of different aspects," says Lara. "So, if we're talking about a financial and property LPA, choose someone who is going to manage your finances and act in your best interests at all times."