Lasting Power of Attorney
WHAT IS A LASTING POWER OF ATTORNEY?
A Lasting Power of Attorney (LPA) is a crucial legal document that allows an individual (the Donor) to designate someone they trust (an Attorney) to handle their affairs if they become unable or unwilling to make decisions themselves.
At some point, you might find yourself unable to manage your finances or personal welfare due to illness or incapacity. Having someone you trust to act on your behalf can be invaluable.
Even in youth, unexpected illnesses or injuries can leave us incapacitated. Having a reliable person to manage your affairs can alleviate the stress of unpaid bills and provide peace of mind when you need it most.
As we age, the likelihood of needing an Attorney increases due to higher risks of illness and injury. Setting up a Power of Attorney ensures that, in the event of incapacity, your financial and personal matters are in safe hands.
SETTING UP AN LPA ALLOWS YOU TO PLAN IN ADVANCE
An LPA provides peace of mind by allowing you to plan for unforeseen circumstances:
- Designate who will make decisions for you (your Attorneys)
- Specify the types of decisions you want made on your behalf, such as life-sustaining treatments
- Outline how you want your Attorneys to make those decisions, for example, jointly
Once the LPA is registered with the Office of the Public Guardian (OPG), your Attorneys can make financial decisions for you, adhering to the principles of the Mental Capacity Act. Your Attorneys can act independently without OPG involvement unless concerns are raised about their conduct.
Setting up an LPA requires minimal personal details and can be done relatively quickly.
WHO CAN ACT AS MY ATTORNEY? WHO CAN MAKE AN LPA?
Anyone aged 18 or older with mental capacity and not bankrupt at the time of signing the form can be an Attorney. It’s best to choose someone you trust, such as a relative or a professional. Most professional Attorneys only handle Property & Financial Affairs LPAs.
You should also decide how you want your Attorneys to act:
Your Attorneys must make all decisions together. If they disagree, the decision cannot be made. This option ensures all Attorneys agree but can delay decisions.
If one Attorney cannot act (due to death, loss of capacity, etc.), the LPA becomes invalid, and a Replacement Attorney will take over as the sole Attorney.
Your Attorneys can make some decisions independently but must agree on others. This option allows for day-to-day decisions to be made independently while requiring consensus for significant decisions, like selling your home. Note that if deemed unworkable by the OPG, this LPA could be rejected.
Your Attorneys can make all decisions together or independently. This is useful if one Attorney is closely involved in your affairs, or another is often unavailable. It ensures the LPA remains effective if one Attorney dies.
For more information, contact our in-house legal team, who can assist you with any questions about setting up a Lasting Power of Attorney.
