Lasting Powers of Attorney – A Practical Guide

There may come a time when, because you are incapable of managing your property and financial affairs or personal welfare, you will need someone to do this for you. You can formally appoint a friend, relative or professional to hold a Lasting Power of Attorney that will allow them to act on your behalf.

Lasting Powers of Attorney (LPA) came into effect on 1st October 2007 and replaced Enduring Powers of Attorney. An LPA allows you to appoint another person to manage your affairs if you become unable to do so. The person you appoint is called your Attorney. An Attorney’s role is to make the decisions that you would have made if you were able to.

Hopefully you will never need to use your LPA, but preparing one is a way of making sure that, in the event of permanent or temporary mental incapacity, someone of your choice will be able to make decisions for you. If you do not have an LPA and you are not capable of making your own decisions, an application will be made to the Court of Protection to appoint somebody with authority to handle your affairs. This is a time consuming and expensive application.

There are two types of LPA which you can make - a Property and Affairs LPA (which allows your Attorney to manage your financial affairs) or a Welfare LPA (which allows your Attorney to make personal and healthcare decisions). An Attorney’s role under a Property and Affairs LPA can include collecting benefits, paying bills and expenses, managing bank accounts, buying and selling property and submitting tax returns. An Attorney’s role under a Welfare LPA can include making decisions as to residential and nursing care and consenting to health care decisions.

You can limit the powers that an Attorney has and, if you want, include guidance to help the Attorney in making their decisions. You should appoint someone you trust and in whom you have complete confidence. Your Attorney must be aged over 18 and not bankrupt. You can appoint more that one Attorney so that both Attorneys have to act and make decisions together.

An LPA must be registered with the Office of the Public Guardian before it can be used. Once registered, a Property and Welfare LPA can be used immediately but a Welfare LPA can only be used when you are not mentally capable of making your own decisions.

You can register your LPA straight away and have peace of mind in knowing that it can be used as soon as necessary. Alternatively, you can prepare your LPA and hold on to it. It can then be registered at a later date.  An unregistered LPA does not give the Attorney any legal power. You can also revoke an LPA at any time, provided that you have the capacity to do so.

You do not have to seek legal advice but an LPA is a powerful and important legal document and you may wish to seek advice from a legal adviser with experience of preparing them.  The Elderly Client Department at David Gray Solicitors has a wealth of experience in preparing LPAs. We are also members of Solicitors for the Elderly, which recognises our expertise and commitment to providing legal advice to older adults. We can prepare your LPA for a fixed price of £300 plus VAT. There will also be a Court fee payable (which is £120) if you decide to register your LPA straight away.

If you want to find out more about Lasting Powers of Attorney, please contact Michelle Cresswell in the Elderly Client Department. Michelle’s contact details are:

Tele:                0191 232 9547 ext 4210
E-mail:             michelle.cresswell@davidgray.co.uk