LPA - What is a Lasting Power of Attorney?

There are two types of Lasting Power of Attorney (LPA), namely Property and Financial Affairs and Health and Welfare.

A Lasting Power of Attorney for Property and Financial Affairs gives your attorney/s the power to make financial decisions on your behalf. Whereas a Lasting Power of Attorney for Health and Welfare gives your attorney/s the power to make decisions regarding your health and welfare.

A Lasting Power of Attorney for Property and Financial Affairs typically gives your attorney/s the authority to deal with the following:

• Buying/selling your property
• Paying bills
• Managing your bank accounts
• Claiming your benefits/pension

A Lasting Power of Attorney for Health and Welfare typically gives your attorney/s authority to make decisions regarding:

• Life-sustaining treatment
• Giving or refusing consent to medical treatment
• Where you should live (including moving into a care home)
• Your day-to-day care preferences and routine

It is important to note that a Property & Financial LPA can be used both when you do and do not have capacity, whereas a Health & Welfare LPA can only be used once you have lost capacity. It is also important to note that an LPA is only valid during your lifetime, on death the Lasting Power of Attorney will end, and this is when your will or the intestacy rules come into place.

It is a requirement that the donor (the person making the LPA) must have mental capacity in order to apply for the LPA as the LPA will only be legally valid if the donor has mental capacity at the time of making it. If the donor does not have mental capacity, they cannot apply for an LPA. This can cause stress to loved ones as despite the person being incapacitated, their financial affairs still need to be dealt with such as utility bills and their property, and loved ones do not automatically have the authority to deal with these affairs on their behalf. 

If someone loses capacity and they do not have an LPA in place, your loved ones may not be able to access your finances or make decisions about your care. For your loved ones to be able to do this, they would have to apply to the Court of Protection for a deputyship order. This is a much longer, difficult and costly process compared to making an LPA. The deputy appointed is then supervised by the Office of the Public Guardian. 

Making a Lasting Power of Attorney whilst you have the mental capacity to do so saves a lot of stress for your loved ones.

It is advisable to consult a solicitor regarding making an LPA as they will have the experience and knowledge in dealing with Lasting Powers of Attorney. LPA’s which have been drafted without legal advice may not correctly reflect your wishes and may result in the Office of the Public Guardian rejecting the LPA. Instructing a solicitor to draft your LPA ensures you receive the correct advice to make the appropriate decisions and obtain the desired outcome.

If would like to know more about LPAs and how to make one, then please get in touch to make a free, no-obligation appointment.