What is a Lasting Power of Attorney (LPA)?
LPAs are incredibly useful, as they allow the person making the Power of Attorney (known as the donor) to nominate people they trust to not only make decisions on their behalf, but also allow those people to give consent on their behalf.
This can be essential if you are mentally incapacitated for whatever reason, and you have a trusted individual or individuals who both know your wishes, and have the power to advocate for you.
Are they valid when they are signed, like a Will?
For an LPA to be valid, it needs to be registered with the Office of the Public Guardian (Government Body). They charge £82.00 per document to check and register the LPA. At present, they are taking approximately 26 weeks to provide this service. You might be entitled to a discounted on this fee and we’ll be able to assess this with you.
Types of LPA
There are two main types of LPA that you can arrange:
It is not possible to arrange for a single LPA which covers both property & finance and health & welfare, and you will need to arrange separate LPAs in order to be covered in both areas.
It’s also possible to have a Business LPA, but the powers over the business are governed by your Property & Financial Affairs LPA.
Property & Finance
This gives your attorneys the authority to deal with your financial affairs in the event that you are incapacitated.
Health & Welfare
This gives your attorneys the authority to make decisions regarding your treatment and the level of care that you receive, after you have become incapacitated.
What Can an Attorney Do?
What powers you give to your attorney/attorneys and when you give them the power to act is entirely your decision. We recommend that you give your attorney the power to act immediately on registration, otherwise they may be required to prove you no longer have capacity every time they act on your behalf, and this can create challenges when trying to use the LPA for urgent needs.
Who Needs an LPA?
A common belief is that Powers of Attorney are only needed for elderly relatives who you expect might lose capacity soon. Whilst they are undoubtedly useful in this case, they are also useful at any age, and waiting until after someone’s incapacitated is not possible.
Couples who have joint assets, such as a shared account that pays the bills, should consider arranging a Property & Finance LPA, as if one of you loses mental capacity, the other can and often will be locked out of that account by the bank. Your bank will determine that both parties cannot consent to the funds being used, and therefore lock you out completely, unless you can produce an LPA.
Advocacy in the case of illness, accidents, or sudden medical emergencies like strokes is vitally important. Doctors are extremely limited in what they can tell you without the patient’s consent, especially if you aren’t married. You may also understand the person’s wishes when it comes to treatment better than a doctor, because you’ve had conversations with them prior to them becoming incapacitated.
The reality is, when someone you love becomes incapacitated, it will be very emotionally trying for you. You don’t want to add the additional stress of not being able to access joint funds, or being granted access to them in the hospital.
If you would like more information about setting up a Lasting Power of Attorney, please get in touch.
