The Importance of Lasting Powers of Attorney

Why LPAs are Important

Protection in Case of Incapacity: An LPA provides a safeguard in case you become unable to make decisions due to illness, injury, or old age. It ensures that trusted individuals can manage your affairs without the need for court intervention.
Avoiding Court-Appointed Deputies: Without an LPA, if you lose mental capacity, the Court of Protection may appoint a deputy to make decisions on your behalf. This process can be time-consuming, costly, and may result in someone you would not have chosen managing your affairs.

Types of Lasting Powers of Attorney

There are two types of LPAs, each serving different purposes:

Property and Financial Affairs LPA: This LPA allows your attorney to make decisions about your finances, such as managing bank accounts, paying bills, collecting benefits or pensions, and selling property.
Health and Welfare LPA: This LPA allows your attorney to make decisions about your healthcare and personal welfare, including medical treatment, care home arrangements, and life-sustaining treatment. It can only be used if you lack the capacity to make these decisions yourself.

Responsibilities of Attorneys

Attorneys have a duty to act in the best interests of the donor (the person who made the LPA):

Acting in the Donor’s Best Interests: Attorneys must consider the donor’s past and present wishes, beliefs, and values when making decisions.
Record-Keeping and Accountability: Attorneys should keep accurate records of their decisions and transactions, and may be required to provide evidence of their actions to the Office of the Public Guardian.

Setting Up an LPA

Setting up an LPA involves several steps:

Choosing Your Attorneys: Select individuals you trust to make decisions on your behalf. You can appoint more than one attorney and decide whether they must act jointly or can act independently.
Completing the LPA Forms: Fill out the LPA forms, which include details about you, your attorneys, and the decisions they can make. You must also include a certificate provider who confirms that you understand the LPA and are not under any pressure to create it.
Registering the LPA: The LPA must be registered with the Office of the Public Guardian before it can be used. This process can take up to 10 weeks, so it’s advisable to complete it well in advance of when you might need it.

Revoking or Changing an LPA

You can revoke or change an LPA at any time, provided you still have mental capacity:

How to Revoke an LPA: To revoke an LPA, you must send a written notice to the Office of the Public Guardian. It’s also advisable to inform your attorneys and anyone else involved.
Making Changes to an Existing LPA: If you need to make changes to your LPA, you may need to create a new document, as significant amendments typically cannot be made to an existing LPA.

Professional Advice

Seeking professional advice is crucial in setting up an LPA:

Role of Financial Advisers and Solicitors: Financial advisers can help you understand the financial implications of appointing an attorney, while solicitors can ensure that the LPA is legally sound and accurately reflects your wishes.
Ensuring Your LPA is Comprehensive and Legally Sound: Professional guidance helps ensure that your LPA covers all necessary aspects and is properly registered, providing peace of mind that your affairs will be managed according to your wishes.

By working with professionals, you can create a robust LPA that protects your interests and provides clear instructions for your chosen attorneys, ensuring that your affairs are handled smoothly if you become unable to make decisions yourself.