A Lasting Power of Attorney (LPA) is a crucial legal document that allows you to appoint someone to make decisions on your behalf if you lose the capacity to do so. This person, known as your attorney, can manage your financial affairs, make medical decisions, and take care of other important matters. Having an LPA in place ensures that your wishes are followed and that there is someone you trust to look after your best interests.
Without an LPA, your loved ones might face legal challenges to gain the authority to make decisions for you. This can cause delays, added stress, and potentially costly court proceedings. By setting up an LPA, you can avoid these complications and provide clear guidance for your chosen attorney.
In this article, we’ll explore what an LPA is, the different types available, the steps to create one, and answer some frequently asked questions. Whether you are planning for your future or helping a family member, understanding how to set up an LPA is essential for protecting your well-being and ensuring your preferences are honoured.
What is a Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney (LPA) is a legal document that allows you to grant authority to another person (known as an attorney) to make decisions on your behalf. This can be crucial if you become unable to make your own decisions due to illness, injury, or disability. It’s a way to ensure your affairs are managed according to your wishes even when you’re not in a position to oversee them yourself.
There are several reasons why having an LPA is important. It provides peace of mind knowing that someone you trust will handle your affairs competently. Without an LPA, your loved ones might have to go through a lengthy and expensive court process to gain the authority to manage your affairs. An LPA can cover decisions about your property and financial matters, as well as your health and welfare.
Setting up an LPA while you’re in good health means you’re making thoughtful decisions now to protect your future. By having this document in place, you avoid uncertainties and ensure that your preferences are carried out, reducing potential stress for your loved ones during what could be a challenging time.
Types of Lasting Power of Attorney
There are two main types of Lasting Power of Attorney, each serving different purposes:
1. Property and Financial Affairs LPA: This type of LPA allows your attorney to make decisions about your financial matters. This includes managing your bank accounts, paying bills, collecting benefits or pensions, and even selling your home if necessary. You can give your attorney full authority over your financial matters or limit their powers to specific tasks.
2. Health and Welfare LPA: This LPA covers decisions about your personal health and welfare. Your attorney can make choices about your medical treatment, where you should live, and your daily routine, such as what you eat and how you dress. Unlike the Property and Financial Affairs LPA, the Health and Welfare LPA only comes into effect when you are no longer able to make these decisions yourself.
Both types of LPAs offer different kinds of protection and support. It’s possible to set up either or both types of LPAs, depending on your needs and preferences. Appointing the same person for both LPAs can provide consistency, but you can also choose different people, according to their strengths and your trust in them.
Creating an LPA ensures that your financial and personal matters are managed according to your wishes. Whether it’s ensuring your bills are paid on time or deciding the best medical treatment for you, an LPA gives clear, legal backing to your chosen attorney to act in your best interests.
Steps to Create a Lasting Power of Attorney
Creating a Lasting Power of Attorney (LPA) involves several steps to make sure it’s done correctly and legally. Here’s a simple guide to help you through the process:
1. Choose Your Attorney: Decide who you want to appoint as your attorney. This should be someone you trust completely, as they will have significant control over your affairs. Discuss your decision with the person to ensure they are willing and able to take on this responsibility.
2. Get the LPA Forms: You can get the LPA forms from the Office of the Public Guardian’s website. There are different forms for Property and Financial Affairs LPA and Health and Welfare LPA. Fill out the forms carefully, ensuring all details are correct.
3. Fill Out the Forms: Complete the forms with your details and the details of your chosen attorney(s). You will also need a certificate provider to confirm that you understand the significance of the LPA and are not being forced to create it. The certificate provider can be someone who has known you for at least two years or a professional, such as a doctor or solicitor.
4. Sign the Forms: You, your chosen attorney(s), and the certificate provider must sign the forms. It’s important that all signatures are done in the correct order as specified in the instructions.
5. Register the LPA: Send the completed forms to the Office of the Public Guardian to be registered. There is a fee for this service, but you might be eligible for a reduction or exemption based on your financial situation. Registration can take up to 10 weeks.
6. Wait for Confirmation: Once registered, you will receive confirmation from the Office of the Public Guardian. Only then can the LPA be used by your attorney(s).
These steps ensure that your LPA is legally valid and can be used when needed. Take your time with each step to make sure everything is correct and that your future is well-protected.
FAQs About Lasting Power of Attorney
Creating a Lasting Power of Attorney can raise several questions. Here are some common queries and their answers:
1. Do I need both types of LPA?
It’s up to you. If you want someone to manage both your financial affairs and make health and welfare decisions, you should create both types. Otherwise, you can choose just one based on your needs.
2. Can I change my LPA once it’s registered?
Yes, you can change or cancel your LPA at any time, as long as you still have mental capacity. To make changes, you will need to fill out new forms and go through the registration process again.
3. What happens if my attorney passes away or can no longer act?
You can appoint more than one attorney or name a replacement attorney when creating the LPA. If your sole attorney can no longer act and you didn’t appoint a replacement, you will need to create a new LPA.
4. Is an LPA the same as a will?
No, an LPA is different from a will. An LPA is for decisions made while you are still alive but unable to make them yourself, whereas a will outlines your wishes for after you pass away.
5. Do I need a solicitor to create an LPA?
While it’s not required to use a solicitor, professional advice can be helpful to ensure everything is done correctly and to avoid any legal issues.
6. How much does it cost to register an LPA?
As of 2024, the fee to register an LPA is £82 per document. Fee exemptions or reductions may apply if you meet certain criteria.
By understanding these common questions, you can feel more confident about creating a Lasting Power of Attorney and ensuring your affairs are managed as you wish.
Conclusion
Setting up a Lasting Power of Attorney (LPA) is a crucial step in planning for the future. It provides a way to ensure that your affairs are handled by someone you trust if you’re unable to make decisions yourself. Understanding what an LPA is, the different types available, and the steps involved in creating one helps demystify the process and highlights its importance.
An attorney appointed through an LPA can manage your financial matters and make decisions about your health and welfare. This foresight ensures that your preferences are respected and your loved ones are spared from legal hassles. By answering common questions about LPAs, we hope to address any concerns you may have and encourage you to protect your future.
If you need assistance with creating a lasting power of attorney in the UK or have further questions, contact Sovereign Planning. Our team is here to guide you through every step, providing professional advice and support to ensure your needs are fully met. Reach out to us today to secure peace of mind for you and your family.
