Planning for the future includes more than just writing a will. A lasting power of attorney (LPA) is another essential document that ensures your wishes are respected if you become unable to make decisions for yourself. An LPA grants someone you trust the authority to make decisions on your behalf, whether related to your finances, health, or welfare. This can provide peace of mind and ensure that your affairs are handled according to your preferences.
In 2024, setting up an LPA is more important than ever. With an ageing population and the unpredictability of life, having a legally binding plan in place can save your loved ones from difficult decisions. Whether through illness, accident, or age, you never know when you might need someone to step in and assist you.
This guide will walk you through everything you need to know about LPAs—understanding what they are, choosing the right attorneys, the steps to create one, and finally, registering it. By the end, you will have a clear picture of why an LPA is a crucial part of your future planning and how to set one up effectively.
Understanding Lasting Power of Attorney
A lasting power of attorney (LPA) is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you become unable to do so. There are two types of LPAs: one for property and financial affairs, and another for health and welfare. The financial LPA covers decisions such as paying bills, managing bank accounts, and selling property. The health and welfare LPA covers decisions about medical treatment, daily care, and living arrangements.
Having an LPA in place means that your chosen attorney can step in and manage your affairs without delay. This can be crucial in times of sudden illness or accident. By setting up an LPA, you maintain control over who handles your matters, ensuring it is someone who understands your wishes and can act in your best interests.
It’s important to note that an LPA must be set up while you are still capable of making decisions. Once you lose capacity, it’s too late to create one, and your family might have to go through a lengthy and expensive court process to gain authority to act on your behalf. Therefore, it’s wise to plan ahead and establish an LPA before it’s needed.
Choosing Your Attorneys
Choosing your attorneys is one of the most critical steps in setting up an LPA. The person you choose should be someone you trust completely, as they will have significant control over your affairs. Many people choose family members, close friends, or professional advisors as their attorneys.
When selecting an attorney, consider their ability to make sound decisions and their understanding of your wishes. It is also important to think about their availability and willingness to take on this responsibility. Discussing your choice with the person beforehand ensures they are prepared and understand what the role involves.
You can choose more than one attorney if you wish. If you do, you must decide whether they will make decisions jointly or independently. Jointly means they must agree on every decision, which can provide checks and balances but may cause delays. Independently means each attorney can make decisions on their own, offering more flexibility but less oversight.
In some cases, you might want to appoint a replacement attorney. This ensures there is someone to step in if your original attorney is unable or unwilling to act. Being thoughtful and deliberate about your choices ensures that your affairs will be managed according to your wishes.
Steps to Create a Lasting Power of Attorney
Creating a lasting power of attorney (LPA) involves several steps. First, decide whether you need one or both types of LPA: property and financial affairs, and health and welfare. Each has a separate form and serves different purposes.
Next, choose your attorneys. These should be trusted individuals who can handle the responsibilities of managing your affairs. Once you’ve made your choices, fill out the relevant LPA forms. These forms are available online or from legal offices. Ensure that all details are accurate and complete.
After filling out the forms, you’ll need to get them signed by a witness and a certificate provider. The certificate provider is someone who confirms that you understand the LPA and are not under any pressure to create it. This can be someone you have known for at least two years or a professional such as a doctor or solicitor.
Finally, you must sign the completed forms in the correct order. You start by signing in front of a witness; then, the certificate provider signs, followed by your attorneys who also need witnesses. Make sure to follow the instructions carefully to avoid any errors.
Registering Your Lasting Power of Attorney
Once the forms are completed and signed, the next step is to register the LPA with the Office of the Public Guardian (OPG). Registration is essential as the LPA is not valid until the OPG approves it. Send the original forms along with the registration fee to the OPG. As of 2024, the registration fee is £82 per LPA, though there may be reductions if you are on a low income.
The OPG will check the forms to ensure they are correctly filled out and signed. This process can take up to 10 weeks, so it’s best to register your LPA as soon as possible. Once registered, the OPG will send you and your attorneys a stamped copy of the LPA, confirming that it is valid.
Keep the registered LPA in a safe place, and inform your attorneys where they can find it if needed. It’s also a good idea to give a certified copy to your bank, doctor, or other relevant organisations. They may need to see proof of the LPA’s validity before allowing your attorney to act on your behalf.
Conclusion
Setting up a lasting power of attorney is a wise decision that ensures your wishes are respected if you lose the ability to make decisions yourself. By understanding how LPAs work, choosing reliable attorneys, following the steps to create one, and registering it, you can safeguard your future.
Having an LPA in place reduces the burden on your loved ones, making it easier for them to fulfil your wishes and manage your affairs without legal obstacles. It provides peace of mind knowing your chosen person can act on your behalf in critical matters.
Don’t leave your future to chance. Contact Sovereign Planning to get expert help in setting up a lasting power of attorney tailored to your needs. Your future deserves the best protection, so let us assist you in taking this crucial step.
