The Office of the Public Guardian (OPG) claims that less than 1% of UK adults have a Lasting Power of Attorney (LPA) so here’s 10 key points on LPAs.
- What are LPAs? – An LPA is a legally binding document which appoints an individual (Attorney) to make decisions for you. Such decision making could be temporary (e.g. managing affairs while you’re in hospital) or permanent (e.g. if you have Alzheimer’s). Note that your Attorney cannot make decisions for you unless it can be shown that you lack mental capacity.
- Mental Capacity – Lacking mental capacity means you’re unable to: understand information relating to the decision; weigh up that information; remember that information for long enough to make the decision; and / or communicate your decision. There are two types of LPA, 1) Health and Welfare and 2) Property and Finance.
- Health and Welfare LPA – This LPA can only be used when you’re unable to make your own decisions. It allows the Attorney to make decisions on your daily routine and medical care e.g. life sustaining treatment or moving into care.
- Property and Finance LPA – This LPA can be used, with your permission, as soon as its registered. It allows the Attorney to make financial decisions, such as, paying bills, collecting benefits, selling your home or managing your bank account.
- Why are LPAs important? – According to the Alzheimer’s Society, 1 in 3 people over 65 develop dementia and according to Headway, every 90 seconds in the UK, someone is admitted to hospital with a brain injury. In such situations, where you’re unable to make decisions, wouldn’t you rather someone you’ve chosen, makes decisions for you. Well, if you don’t have an LPA, the Court of Protection may need to appoint someone to make decisions for you and that person may not be who you’d expect.
- Registration – LPAs must be registered with the OPG (which costs £82 per LPA), to be effective. This takes 8-10 weeks provided there aren’t any mistakes in the forms.
- Amendments to LPAs – Changes to an LPA usually require a new LPA to be put in place or a Partial Deed of Revocation to be enacted.
- Picking Attorneys – Your Attorney doesn’t need to live in the UK or be British and can be your partner, relative, friend or a professional (e.g. solicitor), provided they have the mental capacity to make decisions. It’s also useful to pick a replacement Attorney.
- Decision Making Abilities of Attorneys – Where you have multiple Attorneys, you need to decide how decisions are to be made i.e. jointly and severally (together and separately) or jointly (all Attorneys must agree on the decision).
- Misconceptions – Without an LPA, 1) the next of kin does not always get the final say and 2) if a couple has a joint bank account or holds property jointly, they cannot legally make decisions for the other person.
Next steps
If you would like any further information on LPAs, please book an appointment to discuss this using the link at the top of this page.
