One of the critical aspects of planning is ensuring you plan for the unexpected time when you cannot do anything for yourself. You need to ensure that when that time comes, you have someone you trust that can act on your behalf for your wellbeing. You can do this by having a Lasting Power of Attorney.
What is a Lasting Power of Attorney (LPA)
A Lasting Power of Attorney (LPA) is a legal document that enables you to appoint one or more individuals to make decisions on your behalf. It comes into effect if you lose mental capacity or choose to let your attorney act on your behalf while you still have capacity.
There are two main types of LPA:
- Th first one covers property and financial affairs. It allows your attorney to manage your money, pay bills, and handle property transactions.
- The second one covers health and welfare decisions and gives your attorney the authority to make decisions about medical treatment, care arrangements, and daily living.
Having both ensures that every aspect of your life can be managed smoothly if you become unable to make decisions yourself.
What is Mental Capacity and How Does It Affect an LPA?
Mental capacity refers to your ability to make and understand decisions. It means you can comprehend the information relevant to a decision, consider the consequences, and communicate your choice. If you lose mental capacity due to illness, accident, or age-related decline, you can no longer make certain decisions for yourself.
This is where an LPA becomes essential. Without one, your loved ones would need to apply to the Court of Protection to be granted authority to make decisions for you. This is a process that can be lengthy, stressful, and expensive and could compromise your wellbeing. Having an LPA in place ensures that your chosen attorney can step in immediately, without delay, and act in your best interests.
Other Types of Power of Attorney
Before LPAs were introduced in England and Wales in 2007, people could make an Enduring Power of Attorney (EPA). While EPAs are no longer available for creation, existing ones created before 2007 remain valid for financial decisions. However, EPAs do not cover health and welfare matters, which is one reason LPAs were introduced.
There are also Ordinary Powers of Attorney, which are used for short-term or specific situations and remain valid only as long as the donor has mental capacity. For example, you might use one if you’re travelling abroad for an extended period and need someone to handle your financial affairs while you’re away.
Differences Between a Lasting Power of Attorney and a Power of Attorney
The key difference between an LPA and a traditional Power of Attorney lies in duration and purpose. An Ordinary Power of Attorney ends if you lose mental capacity, whereas an LPA remains valid even after you are no longer able to make decisions for yourself.
LPAs are also more comprehensive, covering both health and financial matters, and must be registered with the Office of the Public Guardian (OPG) before they can be used. In contrast, a general Power of Attorney can be created and used immediately without registration, but has limited legal power in situations involving incapacity.
Who Can Make a Lasting Power of Attorney?
Anyone aged 18 or over with mental capacity can create a Lasting Power of Attorney. You must understand what the document means and the implications of giving someone else authority over your affairs.
Your attorneys can be family members, friends, or professionals such as solicitors. What matters most is that they are trustworthy, reliable, and capable of acting in your best interests.
When choosing an attorney, it’s essential to carefully consider who is best suited for the role. You can appoint more than one attorney and specify whether they must make decisions jointly or can act independently. This flexibility allows you to structure your LPA in a way that reflects your personal circumstances.
When Should You Make a Lasting Power of Attorney?
The best time to make an LPA is before it’s needed. Many people mistakenly believe LPAs are only for the elderly, but accidents, illnesses, or sudden medical conditions can affect anyone’s ability to make decisions. Creating an LPA while you are still in good health provides peace of mind, knowing that your wishes will be respected and your affairs handled properly if something unexpected happens.
It’s also worth noting that LPAs take time to process. Registration with the Office of the Public Guardian can take several weeks, so planning early ensures your document is ready when needed.
What Is the Process of Making a Lasting Power of Attorney?
Creating an LPA involves several key steps:
- Choose your attorneys – Decide who will act on your behalf and whether you want one or more attorneys.
- Complete the LPA forms – You can fill in the forms online via the GOV.UK website or use paper forms. You’ll need to specify what powers your attorneys will have and include any restrictions or preferences.
- Get your LPA signed – A certificate provider (someone who confirms you understand what you’re doing) must sign the document. Your attorneys also need to sign to confirm their willingness to act.
- Register your LPA – The completed form must be registered with the Office of the Public Guardian before it can be used. A registration fee applies, but fee reductions may be available for those on low income.
- Store your LPA safely – Once registered, keep your LPA in a secure location and inform your attorneys of its storage.
After registration, your attorneys can use the document as instructed. This can be immediately or only when you lose capacity, depending on your preferences.
How to End Your LPA
You can cancel your LPA at any time as long as you still have mental capacity. To do so, you’ll need to sign a formal deed of revocation and send it to the Office of the Public Guardian.
An LPA also ends automatically if you or your attorney dies, if you get divorced (and your spouse was your attorney), or if the attorney becomes bankrupt in cases involving financial LPAs.
Using an LPA in Care Homes
An LPA can be particularly important when moving into or living in a care home. The health and welfare LPA allows your attorney to make decisions about your care arrangements, such as choosing the right home, deciding on treatments, or consenting to medical procedures. It also gives them the authority to ensure that your preferences are respected, such as your diet, activities, or end-of-life care.
Meanwhile, a financial LPA ensures your bills are paid, care fees are managed, and your finances remain in good order. Without one, your family may struggle to access your accounts or manage costs efficiently.
Having an LPA in place helps ensure that transitions into care are smooth, your finances are secure, and your personal wishes are always at the centre of decision-making.