Why you need a Lasting Power of Attorney if you have a drawdown pension
If you have a drawdown pension in place it is important that you also set up a Lasting Power of Attorney.
As a drawdown pension requires ongoing management to maximise your returns, you should consider what will happen if an illness or accident means you can no longer manage your own affairs.
By making a Lasting Power of Attorney, you can ensure that your affairs continue to be managed by someone you trust.
If you’d like to make a Lasting Power of Attorney, call our legal experts on 01282 695 400.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney allows you (the donor) to appoint someone you trust (known as an attorney) to manage your affairs should you lack the mental capacity to do so.
You can set a Lasting Power of Attorney up at any time, but it can only be used once you have lost mental capacity. This means that after setting up the Lasting Power of Attorney, you can continue to manage your affairs as normal.
To allow someone you trust to manage a drawdown pension, you will need to set up a Property and Financial Lasting Power of Attorney. As the name suggests, this allows whomever you choose as your attorney to manage your financial affairs and any property you own.
You can find out more about making a Property and Financial LPA here.
Why should you set up a Lasting Power of Attorney?
If you were to lose capacity without a Lasting Power of Attorney, a family member would need to apply to the Court of Protection in order to manage your affairs. This can be an incredibly costly and time consuming process.
Until the Court of Protection has granted permission for someone else to manage your affairs, even your spouse could make decisions on your affairs.
Your spouse would be unable to access your pension funds or funds tied up in investments. This can cause numerous problems at would already be a stressful time.
How can you make a Lasting Power of Attorney?
The most common way to make a Lasting Power of Attorney is to speak to a solicitor and have them draw up the paperwork for you.
You do have the option of making a Lasting Power of Attorney yourself, however wording the document can be a difficult. If mistakes are made it could mean that the Lasting Power of Attorney is invalid.
Here at Future Planning Solutions, we can explain the process of making a Lasting Power of Attorney to you and talk both you and your chosen attorney through the actions they will need to take in the event that you lose capacity.
Our specialist solicitors will also be there to offer any support you or your attorney need in the future.
How to contact the Lasting Power of Attorney solicitors at Future Planning Solutions
To speak to a member of our dedicated legal team, call us now on 01282 695 400.
Or, if you’d prefer to arrange a call back with one of our experts, you can complete our online contact form.
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Book a free conversation with one of our specialist solicitors to find out how Future Planning Solutions can take the hassle out of handling your affairs.
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