A complete guide to understanding Lasting Powers of Attorney (LPA)

Types of LPA: Health and Welfare, Property and Financial Affairs

Health and Welfare LPA

• Empowers your attorney to make decisions about your medical treatment and care
• Includes choices about life-sustaining treatment, living arrangements, and day-to-day care
• Only takes effect when you lack the mental capacity to make decisions yourself

Property and Financial Affairs LPA

• Allows your attorney to manage your financial matters, such as paying bills, managing bank accounts, and selling property
• Can be used as soon as it’s registered, with your permission, or when you lose mental capacity
• Ensures your financial affairs are handled responsibly and efficiently

The Importance of Choosing a Trustworthy Attorney

• Trust and Reliability
• Choose someone who understands your values and wishes
• Ensure they are willing and able to take on the responsibility
• Consider their ability to make sound decisions under pressure

Legal and Financial Acumen

• Prefer someone with a good understanding of financial matters for Property and Financial Affairs LPA
• Ensure they are capable of managing and investing assets responsibly

Availability and Willingness

• Select someone who is likely to be available when needed
• Discuss the role with them beforehand to confirm their willingness

How to Set Up an LPA

Initial Steps

• Choose your attorneys and ensure they agree to take on the role
• Decide on any restrictions or guidance you want to include

Filling Out the Forms

• Complete the LPA forms, available online or from legal service providers
• Include details of your chosen attorneys and any replacement attorneys

Signing and Witnessing

• You and your attorneys must sign the forms in the presence of a witness
• The forms also require a certificate provider to confirm you understand the LPA

Registering the LPA

• Submit the completed forms to the Office of the Public Guardian (OPG) for registration
• Pay the registration fee, which can vary depending on your circumstances
• The registration process typically takes 8-10 weeks

Common Scenarios Where an LPA is Useful

Medical Emergencies

• Ensures your health care preferences are honoured if you are incapacitated
• Allows for immediate decision-making in critical situations

Age-Related Decline

• Provides support for managing finances and personal care as you age
• Prevents the need for court-appointed deputies

Chronic Illness or Disability

• Ensures continuity in managing your affairs if you are unable to do so
• Provides peace of mind for you and your family

Absence from the Country

• Allows your attorney to handle financial matters while you are abroad
• Ensures your affairs continue to run smoothly in your absence

The Legal Requirements and Costs Involved

Eligibility

• You must be 18 or older and have the mental capacity to make your own decisions
• Attorneys must also be 18 or older and not be bankrupt (for Property and Financial Affairs LPA)

Costs

• Registration fee for each LPA (current fee is £82 per LPA as of 2024)
• Possible fee reductions or exemptions for low-income individuals
• Additional costs if you choose to seek legal advice or use a professional service

Documentation and Witnessing

• Proper completion and witnessing of forms are crucial for validity
• Incorrect or incomplete forms can delay the process

Ongoing Obligations

• Attorneys must act in your best interests and follow the principles of the Mental Capacity Act 2005
• Keep records of decisions and manage finances separately from their own

This detailed content provides a comprehensive overview of Lasting Powers of Attorney, offering valuable insights for readers considering setting up an LPA.

Published: October 2024 | Author: Benrina Browne