What is a Lasting Power of Attorney?

This post will discuss Lasting Power of Attorney and how you can benefit from this unique legal document. It can help you plan and protect your well-being and estate, even in unforeseen situations.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document by which you, as the donor, appoint one or more persons as your attorneys. Unlike an Ordinary Power of Attorney, LPA attorneys can represent your interests only if the circumstances defined in the document occur.

Types of LPA

While Lasting Powers of Attorney can cover a wide range of situations, there are two main types:

●      Health and Welfare – your attorney will ensure you get the desired medical treatment and daily routine activities if you get sick and suffer from reduced mental capacity. But, you can also put in more detailed information, such as your willingness to accept life-sustaining treatment or certain types of medical care as per your wishes. This only comes into effect once mental capacity has been lost.

●      Property and Financial Affairs – besides your physical state, your attorney can take care of your bank accounts, bills, pension and benefits, all according to your instructions. If you want to be even more specific, you can give instructions about selling your home and property. This legal document can come into effect as soon as it is registered with the Office of Public Guardian.

Who can make an LPA?

A Lasting Power of Attorney can be signed by any donor who is 18 years and older, with mental capacity (the ability to make your own, legal-binding decisions).

Likewise, an attorney can be anyone 18 years and older with mental capacity. This can include family members, close friends, and professionals such as solicitors and even trust corporations.

Who usually creates a lasting power of attorney

Similarly to a Will, an LPA is usually signed by older people who want to plan their estate and healthcare circumstances as they age. People with high-risk occupations and individuals with certain health conditions often protect their future by creating an LPA.

But, business people who want to ensure their company runs smoothly may also be interested in signing a Property and Financial Affairs LPA. Most SMBs heavily rely on the owner as the decision-maker—not being able to make decisions, even temporarily, can severely jeopardise the future of the entire business.

However, as we learned the hard way during the pandemic, life can bring unpredictable circumstances, even on a large scale. In 2019 nobody knew anything about respirator machines; one year later, they became one of the main discussion topics.

Situations like COVID-19 are a prime example of why having an LPA ready is a very good idea, not just for people who are reaching the golden ages but also for everyone else who wants to secure their well-being and assets and have a firm plan for those "just-in-case" scenarios. Don't just take our word for it, see what Money Saving Expert Martin Lewis had to say about Lasting Power of Attorney. Having someone you appointed to make the decisions when you are unable to is much better than relying on a stranger via a court-appointed deputy.

Because of its nature, the LPA is usually signed by older people who want to plan their estate and healthcare circumstances as they age.

However, people with high-risk occupations, as well as individuals with certain health conditions, often protect their future by creating an LPA.

Business people who want to ensure the right financial decisions for their company may also be interested in signing a property and financial affairs LPA.

In short—anyone who likes to have a "just in case" scenario is a suitable candidate for this important document.

How to set up an LPA

Creating a Lasting Power of Attorney involves a strictly formal procedure which we will break down step by step:

Choosing LPA type and attorney(s)

The first step is to select the kind of LPA you need—Health and Welfare, Property and Financial Affairs, or both.

After that, you should think about who your attorney will be. Most commonly, people choose family members or close friends. While this is usually cheaper than professional options, it does come with drawbacks—people are people, and you must ensure you fully trust the capabilities of the assigned person(s) to fulfil your intentions to their fullest.

Going the professional route and hiring an estate planner will ensure that you get exactly what was agreed in the LPA. But, as expected, hiring professionals comes with a cost. Still, considering that your intentions will be executed to the letter, it is often well worth the investment and peace of mind.

Creating the LPA

The UK.GOV website has all the forms you must fill out to create your lasting power of attorney. You can use the convenient online service to fill in the required forms. But if you prefer doing it by hand, that's an option too.

To complete the forms, you must fill in the names, addresses, and dates of birth of the donor, attorneys, replacement attorneys, certificate providers, and other people to notify.

A Certificate Provider is an impartial person who is present when the donor signs the LPA and guarantees that the donor has the mental capacity, fully understands their actions, and is not pressured to sign the LPA. This can be any person 18 years and older, with mental capacity, who has known the donor for more than two years or a professional with relevant skills, such as the donor's general practitioner, estate planner, or similar. However, the Certificate Provider can not be the donor's relative.

Signature and the registration procedure

The donor is the first person to sign the LPA. This needs to be done in front of a witness who is 18+ and has mental capacity.

The next person to sign is the certificate provider.

Lastly, attorneys sign next, each of them with their own witness.

Once the signature is done, you must register the LPA with the Office of the Public Guardian (OPG). You can do this online or by post by sending the completed forms. The fee is £82 for each LPA unless you prove you have income lower than £12,000 or qualify for certain benefits.

If there are no objections, your Lasting Power of Attorney will be registered in about 10 weeks, check here for the latest guidelines on registration.

Common LPA mistakes to avoid

The UK.GOV website lists common mistakes people make when creating a lasting power of attorney. But, in general, you should pay attention to avoid these issues:

●      Choosing the wrong form—This is a strict, formal procedure, and you want to ensure you are using the correct form, whether health and welfare or property and financial affairs LPA. Yes, we know the GOV forms are rather dull, but it is best to take it easy and follow them to the letter rather than cause delays and rejections.

●      Missing pages—You need all of the pages in order. Therefore, if you print and send the forms, double-check the numbering to ensure everything is as it should be.

●      Certificate provider issues—The certificate provider you choose must be impartial. That means they need to be able to judge your ability to sign the LPA fairly and without any personal interest in the LPA. That's why it is not allowed to have family members and relatives as certificate providers or people you heavily influence, such as attorneys, employees, or similar. Failing to choose an impartial certificate provider might cause issues later, even if you register the LPA now.

Bottom line

Creating a Lasting Power of Attorney (LPA) ensures your essential health and estate matters are managed even in unforeseen situations, providing you with peace of mind. This document is a vital safeguard for your decision-making autonomy, even if you can no longer communicate it yourself.

Although you may attempt to complete the process on your own, the complexity and importance of the LPA—over 20 pages long—and the strict registration procedures make seeking professional guidance highly advisable.

We can assist you with your lasting power of attorney by advising you on what to include in the document, how to ensure that your intentions are honoured, and which type of arrangement best fits your current situation and expectations.

So, don't wait to secure your future—consult our experts now.

If you’re in Hornsey, North London or nearby, get in touch and let us discuss your Lasting Power of Attorney intentions. If you can't visit in person, don’t hesitate to book an online or phone consultation—our team is ready to assist you. Creating a Lasting Power of Attorney ensures your essential health and estate matters are managed even in unforeseen situations, providing you with peace of mind. This is an incredibly important document, so it is best to plan carefully and accordingly on time.

Whether you trust your loved ones or choose professionals as your attorneys, the most important thing is to have everything that matters to you covered in the document, leaving no room for misinterpretation.

We can help you with your Lasting Power of Attorney by creating a document that matches your wishes exactly as you want. We check the documentation before submitting it to the Office of Public Guardian, guaranteeing you peace of mind.