Lasting Power of Attorney (LPAs) allow you to appoint someone you trust to make decisions on your behalf if you cannot do so yourself. This can include financial, property, and health decisions. Understanding how LPAs work, when you need them, and how to set them up is essential for effective planning and peace of mind.
LPAs are a key part of planning for the future and can provide clarity and security for you and your family if you lose mental capacity or need support making important decisions.
Key Takeaways
- Lasting Powers of Attorney let you choose trusted people to act on your behalf if you are unable to make decisions yourself.
- There are two main types of LPAs: property and financial, and health and welfare.
- Setting up an LPA involves registration with the Office of the Public Guardian, and the donor must have mental capacity at the time of creation.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document that lets you appoint one or more people known as attorneys to make decisions on your behalf. LPAs are designed to help manage your affairs if you lose mental capacity or find it difficult to manage on your own due to illness, disability, or age.
LPAs are used in everyday life as well as in more serious circumstances. They ensure that your preferences and interests are upheld even when you are not able to express them directly.
There are two distinct types of Lasting Powers of Attorney:
- Property and Financial Affairs LPA – Covering financial decisions, property, bank accounts, bills, and investments.
- Health and Welfare LPA – Covering choices about healthcare, treatment, and daily living decisions.
Types of Lasting Powers of Attorney
Property and Financial Affairs LPA
This type of LPA lets your attorney make decisions about your money and property. They can pay bills, collect income, manage bank accounts, or sell assets if you give them that authority.
A Property and Financial Affairs LPA can be used as soon as it is registered, with your permission, or only if you lose mental capacity.
Health and Welfare LPA
This LPA lets your attorney make decisions about your personal welfare, including medical treatment, living arrangements, and daily care. Health and Welfare LPAs can only be used once you lose capacity to decide for yourself.
Health and Welfare LPAs are particularly important for future planning, as they ensure someone you trust can make decisions that align with your wishes and values.
Why LPAs are Important
LPAs give you control over who makes decisions for you in the future. Without an LPA, family members may have to apply to the Court of Protection to be appointed as a deputy, which can be costly and time-consuming.
Having LPAs in place means your attorneys can act immediately when needed and can reduce stress for family members during difficult times.
Who Can Be an Attorney?
You can choose anyone you trust to be your attorney as long as they are over 18 and have the mental capacity to act in your best interests. Many people choose close family members or trusted friends. You can also appoint more than one attorney, either to act jointly or jointly and severally.
It is important to discuss your intentions with chosen attorneys before setting up an LPA, so they understand your preferences and responsibilities.
How to Make a Lasting Power of Attorney
Making an LPA requires several key steps. First, you must complete the correct forms, which need to be signed by you, the attorneys, and a witness. A certificate provider must also sign to confirm that you understand the document and are not under pressure to create it.
Once completed, the LPA must be registered with the Office of the Public Guardian (OPG). Registration can take several weeks, so it is advisable to apply well in advance of when the LPA might be needed.
During registration, the OPG may contact you or your attorneys to confirm details. Only once registered can your attorneys use the LPA to act on your behalf.
Mental Capacity and LPAs
To create a valid LPA, you must have mental capacity when the document is signed. This means you understand what the LPA is, what powers are being granted, and the implications of allowing someone to act for you.
If there are doubts about capacity, it is important to seek legal advice before proceeding. A health professional may be asked to support the application to confirm capacity.
Registration with the Office of the Public Guardian
LPAs must be registered with the OPG before they take effect. You can register an LPA online or by post. The process involves paying a registration fee, though reduced fees or exemptions may apply if you meet certain criteria.
The OPG keeps a register of all LPAs and ensures they are valid. Once registered, attorneys can act in accordance with the document and help manage your affairs.
When Should I Set Up an LPA?
It is generally best to set up an LPA early, before any health issues arise. Waiting until capacity is lost means you cannot create an LPA, and your family may need to seek a deputyship order from the Court of Protection instead.
LPAs should be reviewed periodically to ensure they remain suitable, especially if your personal circumstances or relationships change.
Responsibilities of Attorneys
Attorneys must act in your best interests at all times. This includes acting within the powers given to them, keeping records of decisions made, and consulting you as far as possible if you still have some capacity.
If an attorney fails to act properly, a complaint can be made to the Office of the Public Guardian, and in serious cases, the court can remove the attorney or take further action.
Cancelling or Changing an LPA
You can cancel or amend an LPA as long as you have the mental capacity to do so. This may be relevant if your preferred attorneys change or your circumstances evolve.
However, once you lose capacity, an LPA cannot be changed or revoked. Any changes must be made before that point.
Common Issues and How to Avoid Them
Delays in registration and misunderstandings about the powers granted are common challenges in LPA planning. Ensuring forms are completed correctly and seeking professional help where necessary can reduce these risks.
Clear communication with your chosen attorneys before setting up an LPA helps ensure they understand your expectations and are prepared to act when needed.
Summary
Lasting Powers of Attorney are a vital part of planning for the future. They allow trusted individuals to act on your behalf if you lose capacity, helping manage financial affairs and personal welfare. Setting up LPAs early and correctly can provide peace of mind and reduce the likelihood of complications during difficult times.
Frequently Asked Questions
What is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that lets you appoint someone to make decisions for you if you lose the ability to do so yourself.
What Are the Types of LPAs?
The two main types are:
- Property and Financial Affairs LPA
- Health and Welfare LPA
Who Can Be an Attorney?
Anyone you trust, over the age of 18 and capable of acting in your best interests.
When Does an LPA Take Effect?
A Property and Financial Affairs LPA can take effect once registered. A Health and Welfare LPA only takes effect if you lack mental capacity.
Can an LPA Be Changed?
Yes as long as you have mental capacity. Once capacity is lost, it cannot be changed.