Understanding Lasting Power of Attorney: a guide
Understanding Lasting Powers of Attorney: A Comprehensive Guide
A Lasting Power of Attorney (LPA) is a crucial legal document in England that allows an individual (the donor) to appoint one or more people (attorneys) to make decisions on their behalf if they lose mental capacity. This guide delves into the importance of LPAs, the types available, the process of setting one up, and practical advice for making the most of this legal tool.
Why LPAs Are Important
As people live longer, the likelihood of losing mental capacity due to conditions such as dementia, stroke, or severe illness increases. Without an LPA, if you become unable to make decisions, your loved ones may face a lengthy and costly court process to gain the authority to act on your behalf. An LPA ensures that trusted individuals can manage your affairs smoothly, reducing stress and providing peace of mind for you and your family.
Types of LPAs
There are two main types of LPAs:
Property and Financial Affairs LPA:
- Allows your attorney to manage your financial matters, such as paying bills, managing bank accounts, collecting benefits, and selling property. This LPA can be used as soon as it is registered with the Office of the Public Guardian (OPG), with your consent, or only if you lose mental capacity.
Health and Welfare LPA:
- Empowers your attorney to make decisions about your healthcare, medical treatment, and living arrangements. This LPA can only be used when you lack the mental capacity to make these decisions yourself.
How to set up an LPA
Creating an LPA involves several steps, which, while straightforward, require careful consideration:
- How to choose your attorney(s):
- Your attorney should be someone you trust implicitly, such as a family member or close friend. You can appoint more than one attorney and specify whether they must act jointly (all must agree) or jointly and severally (they can act independently).
- How to complete the Forms:
- You can complete the forms yourself, or a legal professional can assist in the completion of the documents. There are separate forms for each type of LPA. Your signature on the forms must be witnessed, and a certificate provider (someone who confirms you understand the LPA and are not under duress) must sign the form. The certificate provider can be a professional, such as a doctor or solicitor, or someone who has known you for at least two years.
- How to register theLPA:
- The LPA must be registered with the OPG before it can be used. Registration can take up to 20 weeks, so it’s advisable to register your LPA well in advance of when it might be needed. There is a fee for registration, but exemptions or reductions are available for those with low incomes or on certain benefits.
How to make the most of your LPA
To ensure your LPA serves its purpose effectively, consider the following tips:
- Communicate Your Wishes:
- Clearly communicate your preferences and expectations with your chosen attorney. For a Health and Welfare LPA, this might include your views on medical treatments, end-of-life care, and preferred living arrangements. Consider writing a letter of wishes to accompany your LPA, outlining specific instructions or preferences.
- Review Regularly:
- Review your LPA periodically, especially if your circumstances change. If necessary, you can revoke your LPA and create a new one. Ensure your attorneys are still willing and able to act on your behalf.
- Backup Attorneys:
- Consider appointing replacement attorneys who can step in if your primary attorney is unable or unwilling to act. This ensures continuity in managing your affairs.
- Storing and Sharing the LPA:
- Store your registered LPA safely and inform your attorney(s) where it is kept. Provide copies to relevant institutions, such as banks or healthcare providers, to facilitate smooth implementation when needed.
Common Misconceptions about LPAs
- Immediate Loss of Control:
- Creating an LPA does not mean you lose control over your affairs immediately. For a Property and Financial Affairs LPA, you can specify that it only comes into effect if you lose mental capacity. For a Health and Welfare LPA, it can only be used if you are unable to make decisions yourself.
- Applicability Only to the Elderly:
- LPAs are not just for the elderly. Accidents and illnesses can strike at any age, making it prudent for adults of all ages to consider setting up an LPA.
Conclusion
Lasting Powers of Attorney are vital tools for ensuring your affairs are managed according to your wishes if you lose mental capacity. By understanding the types of LPAs, the setup process, and best practices for their use, you can make informed decisions that protect your interests and provide peace of mind for yourself and your loved ones. Taking the time to create and register an LPA is a proactive step towards safeguarding your future, making it a worthwhile investment in your personal and financial well-being.
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