A Lasting Power of Attorney document (LPA) is a legal document that allows you to appoint one or more people to make decisions on your behalf during your lifetime.

If you one day lose your mental capacity to make decisions, then someone you know, and trust, can make them for you. They are the Attorney.

To make a Lasting Power of Attorney document, you must be over 18, and have mental capacity to do so. Mental capacity is a legal term that means you understand the decisions you make, and why you are making them. Only you can put an LPA in place; someone can not do it on your behalf. You must be able to act independently and be able to make independent decisions about what you would like to do.

Why it is Important to have a Lasting Power of Attorney Document

Once you have appointed your LPA, you can have peace of mind that they will make decisions if one day you are unable to. This could be due to an illness such as dementia, due to an accident, or even just old age.

They can take care of your financial and property decisions for you as well as your health and wellbeing decisions. They should also be able to best reflect your wishes, so you know that they are taking care of things in the way you would want them to.

You can only make a Lasting Power of Attorney document whilst you are still well enough to make your decisions yourself, as you have to fully understand the document and its effects. If you unfortunately lose the mental capacity before the Lasting Power of Attorney document is put in place, you cannot do it, so it is important you do it while you still can.

Your next of kin does not have automatic legal rights to make decisions on your behalf without a Lasting Power of Attorney. Because of this, many couples choose to have a mirror LPA. These documents allow couples to become the other’s LPA if they lose their mental capacity.

If You do Not Have an LPA

Unfortunately, if you do not have a Lasting Power of Attorney, there is no one who can legally make your decisions for you. This goes for your financial and property decisions as well as your health and wellbeing decisions.

If you do not have an LPA and your spouse or children end up having to make decisions on your behalf, they have to apply to the Court of Protection. Then, the court will decide which person has the legal authority to make decisions for you. This person is your Deputy. This is a different role than an Attorney, and it is more involved and can be significantly more costly.

Types of LPA

There are two types of LPA. These are:
• Health and wellbeing Lasting Power of Attorney
• Property and financial affairs Lasting Power of Attorney

Health and wellbeing LPA

A health and wellbeing LPA can make decisions about your healthcare, treatments and living arrangements if you can no longer make them for yourself. For example, if you want to stay in your own home rather than moving to a care home. Then, your LPA would have the authority to ensure you can do that.

A health and wellbeing LPA is only consulted if you have lost the mental capacity to make these decisions for yourself.

Property and financial LPA

A property and financial LPA makes decisions on your financial affairs, as well as your property decisions in England and Wales. They can make decisions for you in terms of selling your property, for example.

The person or people you choose can either be attorneys if you lose mental capacity, or in a broader sense, for example, through age or an accident. You can also use them if you move out of the UK and wish for them to deal with your finances in the UK.

Lasting Power of Attorney Guide

There are different ways that a Lasting Power of Attorney document works. Here is a basic Lasting Power of Attorney guide and what happens when one is appointed:

A person unfortunately loses the mental capacity to make decisions. With an LPA in place for their financial affairs, they would have a legally appointed person to represent them in all financial decisions, that the bank recognises. This person can also make sure the bills are still paid and may also sell the property if they need to.

With an LPA in place for their health and wellbeing, their representative can make decisions on where they live. They also have a legal right to make decisions on the medical treatment the person can have.

When is the best time to put a Lasting Power of Attorney Document in place?

No one ever knows what is round the corner, so the short answer is as soon as possible. To put an LPA in place, there is a specific process that you must follow.

•  Firstly, the LPA needs to be prepared. This can be done by yourself or a legal professional.
•  Secondly, the LPA document must be signed by a few people. These are: yourself with a legal witness, an impartial person who can verify that you understand what you are doing and acting independently. This person is a ‘certificate provider’.  They must be over 18 and have known you for at least 2 years. Alternatively, it can be someone with relevant professional skills such as a Doctor. Finally, the Attorneys and any replacement Attorneys must also sign it in the presence of an independent witness.
• Once the LPA has been signed, it must be registered with the Office of the Public Guardian.

The Process of Getting a Lasting Power of Attorney

There is a strict process that your LPA must follow before they use the Lasting Power of Attorney document. This begins with them registering it to The Office of the Public Guardian (OPG). They charge a registration fee of £82 per Attorney.

There may be exemptions to this fee. Examples of this include those who receive certain means-tested benefits, or those on Universal Credit. For more information see Office of the Public Guardian fees.

How we can help

Here at The Inheritance Experts, we help with all manner of inheritance enquiries. This includes Lasting Power of Attorney documents. For more information, fill in our contact form today, or call us on 01614138763 to speak to one of our friendly knowledgeable advisors.