So What is Lasting Power of Attorney? Well, a Lasting Power of Attorney (LPA) is a document which gives powers to people selected by you to make decisions on your behalf if you are unable to make them yourself.
There are two types of LPA, being one which relates to your Property and Financial Affairs and another which deals with your Health and Welfare matters, and each has its separate and important function.
Why Make an LPA?
LPA needs to be arranged whilst you still have mental capacity and is best arranged sooner rather than later before it is too late.
Who Should I Choose as my Attorneys?
Your Attorneys should be someone you trust, and they will have a legal duty to act in your best interest.
The court registered documents provide no powers unless you lose your mental capacity or expressly permit your Attorneys to act on your behalf, and Attorneys also have no powers after you have died.
When Will I Need an LPA?
There could be numerous circumstances in which you need an LPA:
- If you’re the sole earner in your household and you lost mental capacity without an LPA, your family may be unable to pay bills without going through the Court of Protection. This can be an expensive and stressful time for your family.
- If you suffer from dementia and lose mental capacity, you may not be able to make decisions for yourself. Under these circumstances an LPA would allow you to give power to someone you trust to make decisions for you.
- If you are a business owner, you may wish to appoint attorneys who will be able to make important decision about the continuity of your business in the event of you losing mental capacity.
Never assume that your spouse or partner will automatically be given the right to make these decisions for you, as they almost certainly will not!
Capacity and an Attorney’s Responsibilities
Mental capacity could potentially be lost at any time, such as through an accident, a stroke, or a degenerative condition such as Dementia, and with growing reports of
People aged between 18 and 45 suffering from mental health problems, it can happen to people of any age.
The Court of Protection (Deputyships)
Deputyship is granted by the Court of Protection under circumstances where no LPA is in place before the loss of mental capacity. This can be a lengthy process, costs more than registering an LPA and will incur ongoing costs which an LPA would not. It can never be certain that the Court of Protection will approve an application and they are particularly reluctant to approve a deputyship for a person’s health and welfare.
How much does it cost?
The maximum cost per person to arrange LPA through TRF Wills is £294.00, however this cost will be lower if you earn below £12,000 per year (before income tax) or receive a qualifying means-tested state benefit such as housing benefit, council tax benefit or guaranteed state pension credit.
Remember
If you hold joint accounts with someone and lose mental capacity, the bank can and will freeze the account until they see an Attorney or Deputy has been appointed.
Once you’ve lost mental capacity, it’s too late. Get an LPA before you lose the option altogether!
For further details, please take a look at our Power of Attorney page.
TRF Wills (TRF) was created by Michael Cotterill in 2005. He is a member of the Society of Will Writers and registered with the Information Commissioner’s Office.