Health and Welfare LPA

This kind of LPA is an important one as it lets those you’ve chosen to manage your finances do so at any time of your life. You might not want to handle all or certain parts of your finances yourself any longer, or want to have a safeguard should you become unable to manage them.

Do remember you can state in your LPA that you only want it to come into force if you lose capacity.

You may want decisions to be made on your behalf regarding:

Paying your bills

Collecting your income and benefits

Selling your home

Accessing (‘drawing down’) further funds from your equity release plan

Investing money

Equity Release and your Property & Financial Affairs LPA

It isn’t law to have a Lasting Power of Attorney in place when you take out an equity release plan, but at Bower we do strongly recommended that anyone choosing a ‘drawdown’ lifetime mortgage should arrange their Property & Financial Affairs LPA too.

This is because if you are single, or the equity release plan is solely in your name, then you may be unable to request further drawdowns yourself if you have an accident or start to lose mental capacity.

If you’ve taken out a joint drawdown plan, then the same will apply. Both of you need to agree and sign the papers each time you apply to release further funds.

It is not enough for just one of you to be able to sign unless an LPA is in place. But a valid LPA will let your chosen attorney (your spouse, perhaps) to sign the papers on your behalf, enabling further releases in the future.

What happens if I do not have an LPA in place?

If you’re married or in a civil partnership, you may think that your spouse will automatically be able to deal with your bank accounts and pensions if you lose the ability to do so. This is not the case.

Even if you and your partner have a joint bank account, if one of you loses mental capacity then the other does not automatically have the right to access the account without a valid LPA in place that names them as an attorney.

As with all LPAs, get in touch with us here at Bower and we can talk more.