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Lasting Power of Attorney documents (LPAs) can help you plan for the future by appointing a trusted person (known as an attorney) to make decisions on your behalf if you ever lose the mental capacity to do so. LPAs can be set up for making financial decisions or for making health and care decisions. Most of our clients decide to have both types of LPA. 

It’s important to consider what your family would do if you couldn’t make financial decisions for yourself due to an accident or medical issue such as a stroke or Alzheimer’s disease. Many people think that their loved ones would be able to deal with their finances as normal, but this is not the case.

With an LPA in place, your trusted person can:

  • Access bank accounts

  • Write cheques and pay bills

  • Sell or rent out property

  • Continue to receive pension income

  • Continue to run a business

  • Decide where you live, and whether a care home or nursing home is best

  • Decide whether you are to continue to receive, or not receive, healthcare treatment

It is often thought that LPAs are something only older people should have, but anyone can lose mental capacity, even at a young age. Those with assets or who run a business are especially at risk of difficulty without an LPA in place. You may want an LPA document as a short-term measure, for instance, if you’re going to have a stay in hospital, or as part of long-term estate planning.  

We offer Lasting Power of Attorney documents as standalone documents or part of a package alongside a Will. If you need any advice on LPAs, please contact Mark on 07973 791801, or Nick on 07786 041908.

FAQ

What happens if I don’t have an LPA and become incapacitated? 

Your family would need to apply to the Court of Protection for Deputyship, which could cost them up to £2000, and may need to wait 6-12 months before being able to make financial decisions on your behalf. The financial consequences of not being able to pay bills and control finances during this time could be devastating, not to mention you may not receive care in the way you would have wanted. There are also ongoing fees each year, strict oversight from the Court of Protection, and Deputyship powers are limited compared to an attorney’s powers.

We often find that once family members realise just how much cost and time is involved in becoming a Deputy, they do not follow through with the process, and the local authority instead makes decisions on the incapacitated person’s behalf, meaning their best interests are often not followed. 

Do I still need an LPA if I have a spouse or civil partner?

The ability to make financial or health and welfare decisions on your behalf would not automatically be granted to your partner if you were to become incapacitated. If you would like your partner to be able to make these decisions, an LPA is essential to ensuring they would have this authority.  

Do I need to register my LPA?

Yes, for an LPA to be used it must be registered by the Office of the Public Guardian. It can take up to 6 months for an LPA to be registered, so it is important to register LPAs as soon as they have been set up. We arrange registration for you, so you and your attorneys have peace of mind that if they are ready to be used immediately if needed.

What if I’m being pressured to create an LPA?

One of the advantages of using a professional to arrange an LPA is that we can identify when someone is being pressured to create one. We ensure that the donor (the person the LPA is for) has mental capacity, wants the LPA, and is making the LPA without undue influence. In some cases, someone might pressure another person to get an LPA so that they can become an attorney, mainly because they can then access that person’s finances. If you feel that this happening, contact us or a solicitor to get advice. If you have been notified that an LPA is being registered that you did not consent to, contact the Office of the Public Guardian as a matter of urgency.

Who should I have as my attorney? Can I have more than one?

Your attorney should be someone you trust to look after your finances and health/personal care. You can have more than one attorney, and they can either work together, or seperately, if the need arises.  

Can I set up an LPA myself?

Yes, it is possible to use forms downloadable online to try and set up your own LPA. However, we find that they are often incorrectly completed, leading to rejection of the documents by the Office of the Public Guardian, who are responsible for registering the documents, which causes delays and often means the LPAs are not finished. Many people that do their own LPAs do not get them registered, which means they are not ready to be used immediately when needed.  

How much does it cost to set up an LPA?

The overall cost depends on how many LPAs you need, but both types of LPA (property & financial and health & welfare) for one person is £770, while both LPAs for two people is £999, inclusive of VAT.