Who will look after your health and money if anything happens to you? Find out why you need to get a lasting power of attorney in your 50s.
Many people in their 50s understandably focus on pensions, retirement, and paying off their mortgage. But one of the most important legal documents to have in place is a lasting power of attorney (LPA).
A lasting power of attorney allows someone you trust to make decisions for you if you become unable to make them yourself due to illness, injury, or mental incapacity.
Four reasons why you need a lasting power of attorney
Here are four important reasons why people in their 50s should consider getting a lasting power of attorney:
- Illness or accidents can happen unexpectedly
- It protects your financial and healthcare decisions
- It makes life easier for family members
- It gives you control over who acts on your behalf
In the UK, an LPA must usually be set up while you still have mental capacity. Unfortunately, too many people wait until it’s too late to set up their LPA, and either do not have the capacity to apply for one, or have had an accident or sudden illness.
What is a lasting power of attorney?
A lasting power of attorney is a legal document that lets you appoint someone you trust to make decisions for you if you can no longer make them yourself. In the UK, there are two main types of LPA.
1) Property and financial affairs LPA
A property and financial affairs LPA covers your:
- Bank accounts
- Bills
- Property
- Investments
- Pensions
2) Health and welfare LPA
A health and welfare LPA cover your:
- Medical treatment
- Care decisions
- Living arrangements
- End-of-life care preferences
Why you should think about an LPA if you are in your 50s
Many people assume LPAs are only for the elderly, but that’s not true. There are many benefits to having one set up as early as your 50s (and even earlier than that!). Here’s why:
- You still have full mental capacity
- You may own property or have savings
- You may have dependents or aging parents
- Serious illness or accidents can happen at any age
- You may want someone to act for you if you are travelling
What happens if you don’t have an LPA?
When things in our life are fine – we have good health, we have full metal capacity and we expect this to last for many years – we don’t think about what might happen if anything goes wrong. As a result, as many as 77% of people over the age of 55 have no lasting power of attorney.
But illness and accidents can suddenly happen at any age. And if you don’t have a lasting power of attorney, here are some things that may become difficult:
- Your family may struggle to access your finances
- They may need to apply through the courts
- Important decisions could be delayed
- The process can become expensive and stressful
In some cases, even spouses or adult children cannot automatically make decisions for you. So not only do you and they have the stress of dealing with whatever life has thrown at you, you could find yourself in a logistical and financial nightmare.
Common reasons people set up an LPA in their 50s
People often create set LPAs as early as their 50s (or before) because of:
- Dementia concerns
- Family history of illness
- Retirement planning
- Divorce or remarriage
- Caring responsibilities
- Wanting peace of mind
But even if these aren’t front of mind for you right now, setting one up could be a wise planning move.
How much does a lasting power of attorney cost in the UK?
There is usually a registration fee for each LPA document.
Many people choose to:
- Complete it themselves online
- Use a solicitor for advice
- Create both types of LPA together
Fee reductions or exemptions may be available in some situations.
Who should you choose as your attorney?
In order to set up an LPA, you need to choose an attorney to act on your behalf. They should be someone who:
- You trust completely
- Is financially responsible
- Understands your wishes
- Can make calm decisions under pressure
Many people choose:
- A spouse or partner
- Adult children
- Siblings
- Close friends
When can a lasting power of attorney be used?
So when can your lasting power of attorney be used? A registered property and financial affairs LPA can be used while while you still have capacity, unless you have chosen to specify that it cannot.
However, a health and welfare LPA can only be used when you no longer have capacity to make the particular decision affecting your health or personal welfare.
FAQs on lasting power of attorney
What age should you get a lasting power of attorney?
Many experts recommend setting up an LPA in your 50s, or even earlier, while you are healthy and have full mental capacity.
Is a lasting power of attorney only for elderly people?
No. Anyone over 18 can create an LPA in the UK.
Can my husband or wife automatically make decisions for me?
Not always. Without an LPA, family members may not automatically have legal authority over your finances, property and health decisions should something happen to you.
What are the two types of LPA in the UK?
The two types of lasting power of attorney are a property and financial affairs LPA, and a health and welfare LPA.
Protect yourself and your family with an LPA
A lasting power of attorney is one of the most important legal documents you can put in place in midlife. While it’s easy to delay thinking about illness or incapacity, setting up an LPA in your 50s can protect both you and your family in the future.
It’s not about expecting the worst; rather it’s about making sure the right people can help if life takes an unexpected turn.
