Lasting Power of Attorney Explained

A Lasting Power of Attorney (LPA) allows you to appoint someone to make decisions for at a time when you are unable to made decisions for yourself and, in relation to financial matters, when you are able to make decisions for yourself but simply need assistance. It must be created while you still have the required mental capacity remaining.

You can create a Lasting Power of Attorney to manage property, finances and health and welfare decisions.

What is a Lasting Power of Attorney (LPA)?

A Lasting Power of Attorney allows you to give someone, known as your attorney, the legal power to act on your behalf if you lack mental capacity to make decisions for yourself. The attorney(s) you choose must act on your behalf in your best interests, following any instructions or wishes set out in the LPA.

You can create a LPA that gives attorney full powers over your finances and property, and separately a LPA that gives your attorney the ability to make decisions about your health and welfare matters. When appointing more than one attorney, you can specify whether attorneys should always act jointly or only make specific decisions together.

Registering your Lasting Power of Attorney with the Office of the Public Guardian makes it legally binding. Without this registration process being complete, your attorneys will not be able to act.

What is Mental Capacity?

The Mental Capacity Act 2005 sets out the legal definition of mental capacity but essentially, it refers to your ability to understand information and made decisions based on the information provided to you and subsequent retention of this information.

If required, a qualified professional may need to complete an assessment to confirm whether there is enough capacity to make a Lasting Power of Attorney. The result of this assessment will be passed over to your Estate Planner for consideration and where capacity is present, the representative who completed the assessment may be asked to be part of the LPA document.

What are the Different Types of Power of Attorney (POA)?

Lasting Power of Attorney documents can cover an array of decisions.

There are two types: Property and Financial Affairs and Health and Welfare.

Under the Property and Financial Affairs LPA, attorneys can make decisions relating to your finances such as investments, banking, day to day spending, paying debts and dealing with your assets such as your home.

Under the Health and Welfare LPA, attorneys can make decisions regarding your health such as treatment, hospital care, care home requirements and more importantly, life-sustaining treatment such as life-support.

How do I set up a Power of Attorney?

To give someone else authority over your finances or health and welfare decisions, you need to set up a Lasting Power of Attorney and it must be registered with the Office of the Public Guardian. You can do this yourself or you can employ the services of an Estate Planner.

Before choosing an attorney or attorneys, it’s a good idea to talk through this with them and get their insights. Pick someone whom you trust who understands your wishes as well as whether you prefer that they act jointly for some decisions or separately for others.

How much does it cost to set up a Lasting Power of Attorney (LPA)?

If you are doing them yourself, the only cost to you will be the cost of registered the LPA documents with the Office of the Public Guardian. There is a registration fee of £82 per LPA. This fee can be reduced based on your income.

If you do choose to employ an Estate Planner to assist you, their service costs can vary. Most Estate Planners are cheaper than your average high street solicitor.

How do I make changes to my Power of Attorney?

Once your LPA is registered, you cannot physically change the LPA document. If there are minor changes such as a change of name or change of address, you can simply contact the Office of the Public Guardian to notify them. You must not write on your registered LPA.

If you require more substantial changes, such as adding or removing an attorney, you would either need complete a deed of revocation alongside new LPA documents or alternatively a partial deed of revocation.