Protect Your Future
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document that enables you to appoint one or more trusted individuals known as ‘attorneys’ to make decisions for you if you are no longer able to do so yourself. It allows them to support you with decision-making while you still have capacity, or to act on your behalf should you lose it.
Without a Lasting Power of Attorney in place, your loved ones cannot automatically make decisions for you if you were to lose capacity. Instead, they would need to apply to the Court of Protection for a Deputyship Order. As a Lasting Power of Attorney cannot be created once capacity has been lost, this process is often the only option and it can be time-consuming, costly, and emotionally challenging for those involved in the application process.
The different types of Lasting Power of Attorney
There are two distinctive Lasting Powers of Attorney: one for Property and Finances and one for Health and Welfare. These documents are entirely separate for one another and it is not necessary for you to enter into both documents. Additionally, you are able to appoint different individuals to act as your attorneys under each document, allowing you to select attorneys based on their suitability to the role under each document.
The Property and Finance Lasting Power of Attorney can be used to deal with a variety of decisions relating to your finances and property, including but not limited to:
- Accessing and using your bank accounts
- Paying your bills
- Managing payments and investment portfolios
- Buying or selling property
Alternatively, the Health and Welfare Lasting Power of Attorney covers more personal matters, including:
- Giving or refusing consent to life-sustaining treatment
- Consenting to medical treatment
- Decisions relating to your day-to-day care, including your diet, daily activities and who you live with
- Access to your medical records
Who and when?
In reality, a Lasting Power of Attorney is not just for a particular stage of life – any adult can benefit from having one in place, and there is no single “right” time to arrange it. While many people associate Lasting Powers of Attorney with later life, the need for support can arise unexpectedly. Illness or injury, even if temporary, may leave you unable to manage your affairs.
For instance, if you were suddenly incapacitated due to an accident, you might be unable to deal with everyday financial matters or sign important documents, such as those relating to a property transaction. A Lasting Power of Attorney would allow your chosen attorneys to step in and manage these responsibilities on your behalf, helping to ensure continuity and avoid disruption. As loss of capacity can affect anyone at any time, putting Lasting Powers of Attorney in place is a practical step to protect both yourself and your loved ones.
What is involved in preparing Lasting Powers of Attorney?
A Lasting Power of Attorney comprises five key elements. The first is the Donor – this is the individual who creates the Lasting Power of Attorney.
The second is the attorneys, namely those appointed to act on the Donor’s behalf. Anybody can be appointed as an attorney, so long as they are 18 or over and can make decisions. That said, it is important to ensure that you appoint individuals who you trust and who possess the relevant skills to deal with the role. We can advise you in this regard if you are experiencing any complications.
Another important component is the Certificate Provider. This must be an independent individual, separate from the attorneys, who confirms that the Donor understands the nature and effect of the document and has the requisite mental capacity at the time it is made. The Certificate Provider may be someone who has known the Donor personally for at least two years, or a suitably qualified professional. If we are instructed to prepare your Lasting Powers of Attorney, we may be able to act in this capacity.
The document must then be properly executed, meaning it is signed and witnessed in accordance with the relevant legal requirements. Finally, for the Lasting Power of Attorney to be effective in practice, it must be registered with the Office of the Public Guardian, as attorneys are not able to act until registration has been completed.
How we can help
At Streathers, our team of Private Client solicitors have years of experience in dealing with the preparation of Lasting Powers of Attorney. We can guide you through the decisions involved and assist in preparing a Lasting Power of Attorney that accurately reflects your individual circumstances and wishes.
Should you have any questions or wish to discuss putting Lasting Powers of Attorney in place, please contact a member of our Private Client team and we would be pleased to assist you.
