Overview
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint people, known as attorneys, to help you make decisions or to make them on your behalf. An LPA gives you more control over what happens to you if you had an accident or illness where you could not make your own decisions.
There are two different LPA’s to cover health and finances:-
Health and Welfare Lasting Power of Attorney
The Health and Welfare LPA gives attorneys the power to make decisions about:-
- Your daily routines (washing, dressing and eating)
- Medical care
- Life-sustaining treatment
- Moving into a care home
This LPA will ONLY come into force once you have lost mental capacity.
Financial Affairs Lasting Power of Attorney
The Financial Affairs Lasting Power of Attorney gives attorney’s the power to make decisions about:-
- Your money, property and investments
- They can manage your banks and building society accounts
- Pay bills
- Collect pension and other benefits
- Sell your home
With this LPA, you have the option to grant permission to your attorneys so they can come into force while you are still alive, so the attorney can work with you to make decisions together or when you have lost mental capacity.
Advantages to having a Lasting Power of Attorney
Having a Lasting Power of Attorney (LPA) is a crucial aspect of comprehensive estate and financial planning for several important reasons:
- Decision-Making in Case of Incapacity
An LPA allows you to appoint someone you trust as your attorney to make decisions on your behalf if you become mentally or physically incapable of making decisions independently. This is particularly important as people age or face unforeseen circumstances like accidents or illnesses.
- Ensures Your Wishes Are Honored
By appointing an attorney through an LPA, you can ensure that your preferences, values, and priorities are respected even when you can’t express them yourself. This includes decisions related to your health, well-being, and finances.
- Reduces Stress for Loved Ones
Without an LPA, your family or loved ones may face a complex and time-consuming legal process to gain the authority to make decisions on your behalf. Having an LPA in place can ease the burden on them during what can be a challenging time.
- Healthcare Decisions
An LPA for health and welfare allows your chosen attorney to make decisions about your medical treatment and care, ensuring that your healthcare preferences are followed.
- Financial Management
An LPA for property and financial affairs empowers your chosen attorney to handle your financial matters, including paying bills, managing investments, and selling property if necessary. This ensures your financial obligations are met and your assets are protected.
- Avoids Court Involvement
Without an LPA, if you become incapacitated, it may be necessary for a court to appoint a guardian or deputy to make decisions on your behalf. This process can be expensive, time-consuming, and may result in someone making decisions for you whom you would not have chosen.
- Continuity of Business
If you are a business owner or have financial responsibilities, an LPA for property and financial affairs can help ensure the continuity of your business operations and financial transactions in case of incapacity.
- Peace of Mind
Having an LPA in place provides you with peace of mind, knowing that your affairs will be handled by someone you trust according to your wishes in the event of incapacity.
In summary, having an LPA is a responsible and proactive step to ensure that your interests and well-being are protected even if you are unable to make decisions yourself. It provides peace of mind, streamlines decision-making processes, and allows you to appoint individuals you trust to act on your behalf.
Registering a Lasting Power of Attorney
Once LPA’s have been made, they will need to be registered with the Office of the Public Guardian (OPG). This registration process can take up to 20 weeks. If you have mental capacity, you are able to register your own LPA’s or your attorney can register it on your behalf.
It costs £82 to register each LPA, unless you get a reduction or exemption. This means it costs £164 to register both a property and financial affairs LPA and a health and welfare LPA with the Office of the Public Guardian.
There is no time frame to register an LPA after it has been made. However, it is important to note that it cannot be used until it has been registered. Given the time frame of registration, this could cause issues if you need to make decisions urgently or the donor has lost capacity or falls ill suddenly.
Registering your LPA is a great way to ensuring that it has been executed correctly and no amendments are required while you still have mental capacity.