Why Wills and Lasting Powers of Attorney Matter

Last night’s episode of The Martin Lewis Money Show focused on the importance of having Wills and Lasting Powers of Attorney (LPAs) in place. When a major national programme highlights an issue like this, it reflects just how important the topic is for many people across the UK.

Having the right legal arrangements in place is one of the most important steps you can take to protect your finances, your wishes and your family. Without a Will or LPAs, key decisions about your money, property, health and care may not be handled in the way you would want.

These documents ensure your wishes are followed and the people you trust can act for you when it matters most. Wills deal with your estate after death, and Lasting Powers of Attorney allow trusted people to manage your affairs while you are alive. Many people only start thinking about these documents after they are discussed in the media, but putting them in place early can prevent significant legal and financial difficulties later.

Here is a link to the show, worth watching: https://www.youtube.com/watch?v=NDglOo76aRg

Wills: Making sure your wishes are respected

A Will allows you to decide who inherits your estate. Without one, the intestacy rules apply, which may not reflect your wishes.

A few key points to remember:

• Marriage revokes a Will. This is especially important if you have children from a previous relationship. If you remarry and don’t make a new Will, the intestacy rules apply: the first £322,000 goes to your spouse, and the remainder is split between spouse and children. This can unintentionally disinherit your children.
• A Will makes things easier for your family. Executors can act from the date of death. Without a Will, your family must apply for Letters of Administration before anything can be dealt with.
• A Will gives you control. You choose your beneficiaries. Without one, your estate may pass to people you never intended.

Lasting Powers of Attorney: Planning for loss of capacity

LPAs must be made while you still have mental capacity. They allow the people you choose to make decisions for you if you become unable to do so.

There are two types:

• Property & Financial Affairs LPA – for decisions about money, bills and property.
• Health & Welfare LPA – for decisions about care, treatment and daily living.

Common misconceptions about LPAs:

• “My family can set one up for me if I lose capacity.” They cannot. LPAs must be created by you while you still have capacity.
• “My spouse or children can automatically take over my finances or care decisions.” They cannot. There is no automatic legal right for family members to act on your behalf without an LPA.
• “LPAs are only for older people.” Not true. Illness, accidents or temporary loss of capacity can happen at any age. An LPA ensures the people you trust can step in immediately if needed.

Having LPAs in place means important decisions about your finances, health and welfare are made by those you choose and not by the courts.

Need advice or want to put these documents in place?

Our Wills, Trusts and Probate team: Jane, Kristina, Katie and Lily, will be happy to help.

0161 926 9969  wtp@mlpaw.co.uk