LPAs #1 - Why do I need a Lasting Power of Attorney?

LPAs - What they are and why they are as important as your Will.

A Lasting Power of Attorney (LPA) is a legal document that allows you (as the Donor) to appoint one or more individuals (known as Attorneys) to make decisions on your behalf. It’s main purpose is to cover the situation where you have lost the mental capacity to make decisions yourself but as we shall see, it is not necessarily limited to that situation.

An LPA is an essential part of future planning, ensuring that someone you trust can manage your affairs if you become unable to do so.

It is crucial that you have mental capacity at the time of setting up the LPA so it is better to put them in place sooner rather than later.

Lasting Powers of Attorney are lifetime only documents so there is no overlap with your Will, which is only valid on death. Often the same individuals will be appointed as Attorneys and Executors under the Will but they are two distinct roles.

Without an LPA, if you lose mental capacity (due to illness, accident, or old age), no one has the automatic legal right to manage your affairs, not even your spouse or other close relative. In such cases, someone would need to apply to the Court of Protection for the right to act on your behalf—a process that can be lengthy, costly, and stressful. Not only that, there are no guarantees that the Court of Protection will appoint the person you would have chosen!

Having an LPA in place ensures continuity, clarity, and control, as it allows decisions to be made quickly and in accordance with your wishes by the person or people of your choosing!

Two types of LPA – Finance and Health.

There are two distinct types of Lasting Power of Attorney in England and Wales:

Property and Financial Affairs LPA

This allows the Attorney(s) to:
• Manage your bank and building society accounts
• Pay your bills
• Collect your benefits or pensions
• Sell or rent out your property
• Manage your investments and make decisions about new investments
• Delegate management of your investments to a Discretionary Investment Manager whether they were appointed by you when you had capacity or transferred to a relevant scheme by your Attorney.
• Make gifts of your money providing those gifts are in line with what you were giving before you lost capacity.

This type of LPA can be used as soon as it is registered with the Office of the Public Guardian (with your permission), even if you still have mental capacity. It may well be that you don’t lose mental capacity but just reach a stage in life where you want to delegate responsibility to your Attorneys. Or perhaps you’ve left the country for an extended period and you need a representative to act for you in this country. In these situations you can consent (preferably in writing) to the Attorney(s) acting.

Health and Welfare LPA

This type of LPA can only be used if you have lost mental capacity. This would have to be certified by a medical professional. It allows the Attorney(s) to make decisions about:

• Your care (who is looking after you and how often are those carers required)
• Your medical care and treatment
• Your daily routine (e.g. washing, dressing, eating, how long you spend outdoors, how regularly you have haircuts, manicures etc)
• Where you live (e.g. staying at home or moving to a care home)
• Life-sustaining treatment (if you choose to give your Attorneys express authority in the LPA). This means that the Attorney can be your voice on this issue and even override the medical experts.

What should I do next?

Please take some time to read my second blog on LPAs: www.deborahwisewills.co.uk/blog/lpas-use-a-professional-or-diy

If you would like further information please check out 'LPAs - Everything you need to know'.  This offers comprehensive guidance, building on the information in my LPA blogs #1 and #2.   

You will also get access to the following documents:

• LPA Data Entry Questionnaire
• Guide to the 'Use an LPA GOV UK' online service
• LPA Health - Letter of Wishes SAMPLE & Word template
• LPA Finance - Letter of Wishes SAMPLE & Word template

'LPAs - Everything you need to know' - this comprehensive document covers:

1. What they are and why they are as important as your Will.

2. A comparison of the two types – Finance and Health.

3. Who to appoint.

4. How to appoint your Attorneys – the two tier appointment structure and different appointment options on each tier.

5. What to do about preferences and instructions.

6. Options for completing your LPAs - use a professional or DIY.

With key hints & tips along the way. If you are serious about implementing an LPA please do read it through.