Introduction

Not many people have heard of a Lasting Power of Attorney before. And for those who have, not many know what it is used for or how it’s used. No, an LPA is not the latest buzzword or the latest TikTok trend. An LPA is an important, if not THE most important legal document that you will need during your lifetime.

This blog will explain what an LPA is, the different types of LPAs, what they are used for and why they are necessary. In this blog, the words “Lasting Power of Attorney” and “LPA” will be used interchangeably.

What is a Lasting Power of Attorney, and why is it so important?

An LPA is a legal document which clearly sets out who can make decisions on your behalf. A Lasting Power of Attorney allows you (the Donor) to choose as many Attorneys (the people that you have appointed to make decisions on your behalf) as you want to manage your affairs, small or big. An LPA determines how your affairs are managed during your life and comes in handy if the unexpected happens. More importantly, the absence of an LPA can complicate your life and affairs unnecessarily.

Anyone from the age of 18 can apply for a Lasting Power of Attorney. You can only make a Lasting Power of Attorney while you have mental capacity. If you have been deemed to no longer have mental capacity, you’re not able to apply for an LPA. This is exactly why it is important to prepare an LPA as soon as possible and as young as possible, because life can take a turn at any time.

In the words of Martin Lewis: “A Lasting Power of Attorney is arguably more important than a Will.” An LPA ensures that your affairs are looked after by the people that you trust the most, should anything happen to you while you’re still alive. For example, if you’ve been involved in an accident, and you need temporary or permanent help to manage your daily affairs, an LPA will come in handy. Or if your loved one has lost mental capacity, an LPA would allow you to act on their behalf- whether that’s managing their day-to-day tasks or making important life decisions. An LPA removes unnecessary stress and simplifies things when things seem chaotic. Having an LPA in place avoids a costly and lengthy court process, and most importantly avoids strangers making decisions for you. However, a Lasting Power of Attorney is not only useful in a worst-case scenario but can be practical when you need your Attorneys to help you with tasks or decisions that they might otherwise not have been able to help with.

How long does it take to set up a Lasting Power of Attorney?

It currently takes eight to ten weeks to process and register an LPA from the moment it arrives at the Office of the Public Guardian. There are two types of LPAs- Health and Welfare and Property and Financial Affairs, and they both serve different purposes.

Health and Welfare (HW)

As the name suggests, a Health and Welfare LPA is designed to manage matters specifically related to your health and welfare. It gives your Attorneys permission to manage matters relating specifically to your health, such as liaising with your General Practitioner (GP), managing any existing health conditions and making important decisions regarding your general health. However, it is important to remember that a Health and Welfare LPA can ONLY be used if you lose mental capacity. This is the main difference between the Health and Welfare and the Property and Financial LPA. A Health and Welfare LPA significantly differs from a Property and Financial LPA because the Attorneys’ ability to use the document entirely depends on the state of the Donor’s mental capacity. For this reason, it becomes a far more complicated document to use. However, it’s important to remember that these safeguarding measures exist for a good reason- to prevent your Attorneys from taking advantage of you and to protect your autonomy as a Donor. For safeguarding reasons, it is extremely important that you choose Attorneys that you trust.

It is vital to set up a Health and Welfare LPA as early as possible, because it will protect you if the unexpected happens and you lose mental capacity.

If you lose mental capacity and your Attorneys need to use your LPA to make decisions on your behalf, they will have to prove that you have lost mental capacity. This can be done through your GP or a medical professional. Once a medical professional has determined that you lack mental capacity, your Attorneys will have the legal right to make decisions on your behalf. It is important to bear in mind that a person is not deemed to lack mental capacity because you believe so, or because you think that they are making “unusual” or “wrong” decisions. You can visit the Mental Capacity Act Code of Practice – GOV.UK for more information on how to assess mental capacity.

A Health and Welfare LPA will save you and your loved ones’ time, money and stress. With a Health and Welfare LPA in place, your loved ones won’t have to apply to the Court of Protection to be able to make decisions on your behalf- a process which is both time and money-consuming.

Property and Financial Affairs (PFA)

A Property and Financial Affairs LPA provides your Attorneys with the authority to make financial decisions on your behalf, such as managing your bills, selling your home or managing your bank accounts and investments. A Property and Financial Affairs LPA can also authorise your Attorneys to withdraw or deposit large sums of money. This is why it is fundamental to choose your Attorneys with care- because they will be in charge of your finances, big or small, if you lose your mental capacity. How much access your Attorneys have to your finances depends on what organisation they are dealing with and the policies those organisations have in place. In most places, the original Lasting Power of Attorney, which has been stamped by the Office of the Public Guardian, as well as your Attorney’s ID, will be required. In some cases, you as the Donor would be contacted to confirm that you are aware of these activities as a safeguarding precaution.

More people apply for the Property and Financial Affairs LPA compared to the Health and Welfare LPA, mainly because it can be used as soon as it has been registered. It gives Attorneys more flexibility on when and how to use it. This means that, unlike the Health and Welfare LPA, your Attorneys don’t have to wait until you have lost mental capacity (for example, being diagnosed with Dementia) to use the Lasting Power of Attorney. However, it still gives you the option to allow your Attorneys to only use it if you lose mental capacity. Nevertheless, an LPA should never be used by your Attorneys without your knowledge or permission.

An important point to mention about the Property and Financial Affairs LPA is that it can be an extremely convenient document to have during inconvenient situations. For example, if you’re away on holiday and an urgent financial situation needs to be managed, with your permission, your Attorneys can manage this situation without you being present.

Conclusion

Hopefully, you now know more about the different types of Lasting Power of Attorney, their purposes and, most importantly, why it’s vital to apply for these documents as soon as possible. This blog has also briefly discussed the consequences of not setting up an LPA.

For a no-obligation consultation or help with completing your Lasting Power of Attorney by one of our experts, please contact LPA Assist on 074950 88021, hello@lpaassist.co.uk or fill in our Contact Form, and we’ll get in touch with you.