Do Lasting Powers of Attorney cease on death?
Yes, Lasting Powers of Attorney (LPA) do cease with death. LPAs are used to manage your financial affairs and make decisions regarding your healthcare during your lifetime. It could be argued that it would be helpful for your Attorney to continue to have access to your funds following death for paying bills etc. However, it must be considered that your Attorney may not also be a beneficiary in your estate, so preventing access to your funds after your death could protect your beneficiaries. Furthermore, if a Grant of Representation is required, companies will generally not release funds before sight of the Court sealed document (with the exception of funds to pay the deceased’s funeral invoice). In fact, withdrawal of funds by your Attorney following death could be constituted as fraudulent and it is therefore highly recommended that your Attorney notify all financial institutions of your death at their earliest convenience to prevent any issues arising.
Lasting Power of Attorneys enable you to appoint a trusted person/s as your Attorney to ensure your affairs are handled properly and medical wishes take place if you unable to make decisions yourself due to mental or physical incapacity.
There are two types of Lasting Power of Attorney:
- Lasting Power of Attorney Property and Affairs
- Lasting Power of Attorney Personal Welfare
You may wish to view blog ‘Power of Attorney’ for information on the difference between the two types of Lasting Powers of Attorney and under what circumstances they should be used.
Completing LPAs and appointing an Attorney makes them responsible for making decisions about your financial affairs and healthcare. An LPA cannot be drafted after a person has lost mental capacity. If an LPA has not be drafted and you do lose mental capacity, the cost of appointing an Attorney is very expensive. Your next of kin will have to make an application to the Court of Protection for a suitable Attorney to be appointed. This can cost in excess of £2,000!
Should you require further advice on Lasting Powers of Attorney, or would like to make an appointment for a complimentary consultation, please contact our Will Department on 0800 028 2837