A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you become unable to make them yourself. Setting up an LPA is one of the most important steps you can take to protect yourself and make life easier for your family should something unexpected happen.
Many people assume that their spouse, partner or children would automatically be able to manage their affairs if they lost capacity. In reality, without an LPA in place, even the closest family members have no legal authority to make decisions on your behalf.
In this guide
What is a Lasting Power of Attorney?
A Lasting Power of Attorney is a legal document that gives one or more people (called attorneys) the authority to make decisions on your behalf. The person making the LPA (called the donor) chooses who they want to act as their attorney and can set out specific instructions or preferences about how decisions should be made.
LPAs replaced the older Enduring Power of Attorney in 2007 and offer more flexibility and safeguards. To be valid, an LPA must be registered with the Office of the Public Guardian before it can be used.
Importantly, you can only make an LPA while you have mental capacity to do so. This means you must be able to understand what an LPA is, the powers you are giving your attorneys, and the potential consequences.
The two types of Lasting Power of Attorney
There are two separate types of LPA, covering different areas of decision-making. Many people choose to set up both, but you can have one without the other depending on your needs.
Property and Financial Affairs LPA
This type of LPA covers decisions about your money and property. Your attorney can:
- Manage your bank and building society accounts
- Pay bills, collect benefits and deal with your pension
- Buy and sell property on your behalf
- Deal with your tax affairs
- Make investment decisions
- Claim benefits or allowances on your behalf
A Property and Financial Affairs LPA can be used as soon as it is registered with your permission, even while you still have capacity. This can be useful if you want help managing your finances due to physical illness or mobility issues.
Health and Welfare LPA
This type of LPA covers decisions about your health and personal welfare. Your attorney can:
- Make decisions about your daily routine such as diet and dress
- Decide where you should live and who you should live with
- Consent to or refuse medical treatment on your behalf
- Make decisions about your care arrangements
- Agree to care home placement if needed
- Make decisions about life-sustaining treatment (if you give them this authority)
A Health and Welfare LPA can only be used when you lack the mental capacity to make decisions yourself. Your attorneys cannot make decisions for you while you are still able to make them.
When does an LPA take effect?
The two types of LPA take effect at different times:
Property and Financial Affairs: This LPA can be used as soon as it is registered, provided you consent. You can choose to let your attorneys act immediately or specify that they can only act when you lose capacity.
Health and Welfare: This LPA can only be used when you lack the capacity to make decisions for yourself. The attorney must always act in your best interests and consider any wishes or preferences you have expressed.
Both types of LPA must be registered with the Office of the Public Guardian before they can be used. Registration currently takes several weeks, which is why it makes sense to register an LPA as soon as you have made it rather than waiting until you need it.
Common misunderstandings about LPAs
There are several misconceptions about LPAs that can lead people to delay setting one up or to believe they do not need one.
"My spouse can make decisions for me anyway"
Without an LPA, your spouse has no automatic legal authority to manage your finances or make healthcare decisions on your behalf. They would need to apply to the Court of Protection, which is expensive, time-consuming and stressful.
"LPAs are only for elderly people"
Accidents and sudden illness can affect anyone at any age. Having an LPA in place provides protection regardless of your age or current health.
"Setting up an LPA means losing control"
Making an LPA does not mean giving up control of your life. You remain in charge of your own decisions for as long as you have capacity. The LPA only becomes relevant if you cannot make decisions yourself.
"I can make an LPA later if I need one"
You can only make an LPA while you have mental capacity. If you wait until you need one, it may already be too late. Your family would then need to apply to the Court of Protection, which is more expensive and you have no say in who is appointed.
Why setting up an LPA early is important
The most important thing to understand about LPAs is that you can only make one while you have the mental capacity to do so. Once you have lost capacity, it is too late.
If you lose capacity without an LPA in place, your family would need to apply to the Court of Protection for a deputyship order. This process typically costs several thousand pounds, can take many months, and means a judge decides who will manage your affairs rather than you choosing yourself.
During this time, your bank accounts may be frozen, bills may go unpaid, and your family may struggle to arrange proper care for you. Having an LPA already registered means your chosen attorneys can step in immediately when needed.
For residents of Kent, including Tonbridge and Sevenoaks, professional will writers and estate planners can help you set up LPAs that are correctly completed and registered. This ensures the documents are valid and ready to use if ever needed.
Frequently asked questions
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint one or more people to make decisions on your behalf if you become unable to make them yourself due to illness, injury or mental incapacity.
What is the difference between the two types of LPA?
There are two types: Property and Financial Affairs LPA covers financial matters like managing bank accounts and selling property. Health and Welfare LPA covers decisions about medical treatment, care arrangements and daily routine.
When does an LPA take effect?
A Property and Financial Affairs LPA can be used as soon as it is registered, with your consent. A Health and Welfare LPA can only be used when you lack capacity to make decisions yourself.
Why should I set up an LPA now?
You can only make an LPA while you have mental capacity. If you wait until you need one, it may be too late. Setting up an LPA early gives you control over who will make decisions for you if you ever lose capacity.