A Lasting Power of Attorney (LPA) is a legal document that allows you to choose people you trust to make decisions on your behalf about your property and affairs or your personal welfare should you become physically or mentally incapable of doing so.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document that allows you (the Donor) to choose people you trust (the Attorneys) to make decisions on your behalf about your property and affairs or your personal welfare or both. There are two different types of LPA; a Property and Affairs LPA (which has replaced the Enduring Power of Attorney, although any EPA signed before October 2007 remains valid) and a Personal Welfare LPA, which is a new type of power available.
Property and Affairs LPA
A Property and Affairs LPA is used to appoint one or more people, the Attorneys, to manage your financial affairs and property on your behalf should you become physically or mentally incapable of doing so. It allows your Attorneys to:
- Sign cheques and withdraw money from your bank and building society accounts
- Buy or sell shares
- Sell or purchase a house for you
- Use your assets to finance residential or nursing care fees
- Make investments on your behalf
Your Attorneys must follow the conditions laid out in the LPA when exercising their power and any decisions they make, must be made in your best interests.
Why you should make a Property and Affairs LPA?
A LPA is not just for the elderly, if you are over 18 years of age, you should consider making one. If you have investments, shares or property in your sole name, your spouse or civil partner will not have any legal right to access these accounts in the event of you being unable to deal with your finances. If you do not have a LPA in place and you lose your mental capacity, it will be necessary to apply to the Court of Protection for a Deputy Order which is a costly and lengthy process.
Personal Welfare LPA
A Personal Welfare LPA is a new type of power which allows you to appoint Attorneys to make decisions about your healthcare and welfare when you lack the capacity to do so. You have a few options in deciding how you would like this to be done:
- You can give your Attorneys complete freedom to make decisions relating to your personal welfare, such as;
- your day to day care including your diet, dress and medical treatment.
- You can apply restrictions or conditions to the Power, such as;
- only particular decisions can be taken about your care or medical treatment;
- a particular person must be consulted before making certain decisions;
- You can allow your Attorneys to make decisions about lifesustaining treatment (this authority would override a valid Living Will or Advance Directive).
Who can be your Attorney?
An Attorney can be your spouse, civil partner, child, parent, sibling, friend or even your solicitor, but they must be over 18 years old, have mental capacity and be someone that you really trust. There are however, safeguards in place to protect you. Before your LPA can be used, it must be certified by at least one independent third party and registered with the Office of the Public Guardian. It can then be used straight away or stored until it is needed.
For peace of mind, make one now!
