What would happen if you suddenly lost the ability to decide about your finances or health? In the UK, over 900,000 people are living with dementia, and countless others face unexpected illnesses or accidents that leave them unable to manage their affairs. Yet, many people assume their loved ones can automatically step in to help.
The reality is far more complex. Without a Lasting Power of Attorney (LPA), your family could face lengthy legal battles and costly court applications to gain the authority to act on your behalf.
In this blog, we’ll explore why setting up an LPA is one of the most critical steps to protect yourself and your loved ones from unnecessary stress and uncertainty.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document that gives someone you trust—referred to as your “attorney”—the authority to make decisions on your behalf if you lose mental capacity. Mental capacity refers to your ability to make decisions for yourself, which can be affected by conditions such as dementia, a stroke, or a serious accident.
In the UK, there are two types of LPAs:
1. Property and Financial Affairs LPA
This type of LPA allows your attorney to manage your financial matters, such as:
- Accessing your bank accounts.
- Paying bills and managing debts.
- Selling or renting out property.
- Handling investments and pensions.
A Property and Financial Affairs LPA ensures that your finances are managed responsibly and according to your wishes, even if you cannot oversee them yourself.
2. Health and Welfare LPA
This LPA covers decisions about your welfare, including:
- Medical treatment and care.
- Decisions about life-sustaining treatment.
- Daily care, such as diet and living arrangements.
A Health and Welfare LPA is vital for advance care planning, as it ensures that your medical and personal well-being preferences are respected.
Why is a Lasting Power of Attorney Important?
Many people assume that their family will automatically be able to make decisions for them if they lose mental capacity. However, this is not the case. Without an LPA, your loved ones may need to apply to the Court of Protection to gain the legal authority to act on your behalf—a time-consuming, expensive, and emotionally draining process.
Here are some key reasons why an LPA is essential:
1. Avoiding Legal Complications
An LPA eliminates the need for your family to go through complex legal proceedings to manage your affairs. This ensures that decisions can be made quickly and efficiently when needed.
2. Personalised Control
With an LPA, you can specify exactly how you want your affairs to be managed and who you trust to make decisions for you. This level of control is invaluable in ensuring your wishes are followed.
3. Protecting Your Assets and Well-being
By appointing a trusted attorney, you can safeguard your finances and ensure that your health and welfare decisions align with your values and preferences.
Benefits of Having a Lasting Power of Attorney
Setting up an LPA offers numerous benefits for both you and your loved ones. Here are five key advantages:
1. Peace of Mind
Knowing that someone you trust will handle your affairs if you lose mental capacity provides peace of mind for you and your family.
2. Reduced Family Conflict
An LPA minimises the potential for disputes among family members by clearly outlining your wishes and appointing a specific person to act on your behalf.
3. Avoiding Costly Legal Proceedings
Without an LPA, your family may need to apply for a deputyship through the Court of Protection, which can cost thousands of pounds and take months to process.
4. Ensuring Your Wishes Are Followed
An LPA allows you to communicate your preferences in advance, ensuring that your decisions about finances, health, and welfare are respected.
5. Freedom to Choose Your Attorney
You can select someone you trust—a family member, close friend, or legal professional—to act in your best interests.
Common Misconceptions About LPAs
Many people delay setting up an LPA despite their importance due to common misconceptions. Let’s address some of these myths:
- “I’m too young to need an LPA.”
LPAs are not just for the elderly. Accidents or illnesses can happen at any age, so it’s wise to plan ahead. - “My family will automatically handle my affairs.”
Without an LPA, your family has no legal authority to decide for you. They would need to apply to the Court of Protection, which can be lengthy and stressful. - “It’s too expensive or complicated.”
Setting up an LPA is more affordable and straightforward than many people think. The registration fee in England and Wales is £82 per LPA, and online resources and legal professionals are available to help.
How to Set Up a Lasting Power of Attorney in the UK
Creating an LPA is a straightforward process. Here’s a step-by-step guide:
1. Choose Your Attorney(s)
Select someone you trust to act in your best interests. You can appoint multiple attorneys and specify whether they must act jointly or independently.
2. Complete the LPA Forms
You’ll need to fill out the appropriate forms for each type of LPA:
- Form LP1F for a Property and Financial Affairs LPA.
- Form LP1H for a Health and Welfare LPA.
These forms are available on the UK government website.
3. Get the LPA Signed and Witnessed
You must sign the LPA, your attorney(s), and a certificate provider who confirms that you understand the document and are not under pressure to create it.
4. Register the LPA with the Office of the Public Guardian
An LPA is not legally valid until it is registered. The registration process takes around 8-10 weeks, so it’s best to plan.
Take Action Today
A Lasting Power of Attorney is not just a legal document—it’s a way to secure your future and protect your loved ones from unnecessary stress and uncertainty. Whether it’s managing your finances or ensuring your health and welfare decisions are respected, an LPA gives you the control and peace of mind you deserve.
At Cooper Hall Solicitors, we understand the importance of planning for the future and protecting your rights. Our experienced team of solicitors is here to guide you through setting up a Lasting Power of Attorney, ensuring it is tailored to your unique needs and legally compliant.
Schedule an appointment today!
FAQs
1. Can I have more than one attorney in my Lasting Power of Attorney?
Yes, you can appoint more than one attorney in your LPA. You can also decide how they should act—either jointly (where they must make all decisions together) or jointly and severally (where they can act independently or together). This flexibility allows you to ensure that your affairs are managed effectively, even if one attorney is unavailable.
2. What happens if my attorney is unable or unwilling to act?
If your appointed attorney is unable or unwilling to act, the responsibility will pass to any replacement attorney you’ve named in your LPA. If no replacement attorney is specified, the LPA may become invalid for that area of decision-making, and your family may need to apply to the Court of Protection to appoint a deputy. This is why it’s important to consider naming a replacement attorney when setting up your LPA.
3. Can I cancel or change my LPA after it’s been registered?
Yes, you can cancel or change your LPA anytime, as long as you still have mental capacity. You must complete a Deed of Revocation to cancel it and inform the Office of the Public Guardian. If you want to make changes, such as appointing a new attorney, you must create and register a new LPA.
4. Does an LPA cover decisions about my business?
No, a standard LPA does not automatically cover business decisions. If you own a business, you may need to create a separate Business LPA to appoint someone to manage your business affairs if you lose mental capacity. This ensures that your business operations can continue smoothly without disruption.
5. Can my attorney make decisions about my will or inheritance?
No, an attorney appointed under an LPA cannot make or change your will. Their authority is limited to the decisions specified in the LPA, such as managing your finances or health and welfare. If you need to update your will, you must do so while you still have mental capacity.
6. Is an LPA valid outside the UK?
An LPA is generally only valid within England and Wales. If you have assets or interests in other countries, you may need to create similar legal documents in those jurisdictions. It’s advisable to seek legal advice if you have international concerns.
