A Guide to Lasting Powers of Attorney
A Lasting Power of Attorney (LPA) is a legal document which allows you to appoint another person (or people) to make decisions on your behalf should you become unable to manage your own affairs.
There are many reasons why you may need someone to make decisions on your behalf; for example, this could be a temporary measure for a hospital stay or perhaps you need help with everyday financial tasks like paying bills or it could form part of long-term planning. You will not be able to establish an LPA if the person concerned has received a diagnosis of Dementia or has been deemed to have lost capacity.
There is a common misconception that spouses have authority in law to act for each other without a health or property and finances LPA registered; sadly, this is not the case.
There are two types of LPAs
Health & Welfare
o This LPA covers decisions relating to your daily routine, where you live, your medical treatment, the care and support you receive and what types of social activities you take part in
o When setting up this LPA, you must decide whether to give your attorney(s) the authority to make decisions about life-saving treatment
o If you lose mental capacity and don’t have this type of LPA in place, any decisions about your health or care will be made by the professionals relevant to your situation. They may consult with your family but ultimately, the decision lies with them
o This LPA can only be used by your attorneys once you are deemed to have lost capacity
Property & Financial Affairs
o This LPA covers the operation of bank accounts, to acquire/dispose of assets and anything else financial such as dealing with your financial adviser to manage your investments or to make claims for benefits on your behalf
o This LPA can be used by your attorneys before or after you are deemed to have lost capacity
If you lose capacity without establishing an LPA, the Court of Protection will appoint a Deputy to manage your affairs; you will have no say in who the Deputy will be and this can be a costly process.
Who should I choose as my attorney(s)?
You are likely to want to choose someone you are close to such as a family member or friend or you could choose a professional such as a solicitor.
It is important to be sure that whomever you choose will make decisions in your best interests and that you give the person time to think about the role and responsibilities to ensure they are comfortable doing it. Your attorney(s) will need to be over 18 years of age.
Once you have made the decision to apply for one or both types of LPA, you should:
o Nominate your attorneys
o Obtain a certificate of Mental Capacity – this is a declaration from someone you have known for at least 2 years or a professional stating that you have adequate mental capacity at the time the LPA is created and fully understand the authority that is being given
o Submit the LPA(s) to The Office of the Public Guardian (OPG) with the appropriate fees (currently around £82 per application) · You can make an LPA online via https://www.gov.uk/power-of-attorney/make-lasting-power
Please note, the registration of LPAs can take up to 20 weeks if there are no mistakes in the application. Once the LPA(s) are recorded, the relevant OPG forms will be sent out – these inform those you have chosen in your Power of Attorney.
If you would like any further information or feel this is an area we can assist you with, please do not hesitate to contact one of the team at North Laine Financial Management.