As a solicitor, I’m often asked about lasting power of attorney and it’s no surprise why. These legal documents are amongst the most important you’ll ever create, yet many people put off making them or simply don’t understand what they involve.
I’ve seen firsthand how having the right lasting power of attorney in place can make all the difference during difficult times, protecting both you and your loved ones. Conversely, I’ve also witnessed the stress and complications that arise when families haven’t planned ahead.
Let me walk you through everything you need to know about lasting power of attorney, so you can make informed decisions about your future.
What is a lasting power of attorney?
Simply put, a lasting power of attorney is a legal document where you (the donor) grant authority to people you trust (your attorneys) to step into your shoes and make decisions on your behalf. They’re typically used when you can no longer make decisions yourself, either because you’ve lost mental capacity (permanently or temporarily) or because you’re physically unable to do so.
In the UK, we have two types of lasting power of attorney (LPA):
1) Health and Welfare LPA
The standard health and welfare LPA empowers your attorneys to make decisions about anything relating to your health and wellbeing. This includes:
- Giving or refusing consent to life-sustaining treatment
- Making decisions about your care arrangements
- Liaising with healthcare professionals such as doctors and social services
- Choosing where you live and who you have contact with
2) Property and Financial Affairs LPA
The property and financial affairs LPA allows your attorneys to handle everything related to your money and property. This covers:
- Buying or selling property on your behalf
- Opening, closing, or operating bank accounts and building society accounts
- Providing access to your financial information
- Receiving income, inheritance, or other entitlements for you
- Managing your tax affairs
- Paying bills and managing investments
Something many people don’t realise with a property and financial affairs LPA, you can actually ask your attorneys to help you whilst you still have capacity. For example, if you’re hospitalised and can’t manage your bills or sign important documents, your attorneys can step in temporarily. Once you’ve recovered, you simply resume control of your affairs.
However, health and welfare decisions are more personal, so your attorneys can only make these choices once you lack the capacity to decide for yourself. Regardless of which type of LPA we’re discussing, your attorneys must always act in your best interests – it’s a legal requirement.
Why does this matter? (For your family and your business)
Without LPAs in place, you’re essentially leaving crucial decisions about your life to chance. If you become unable to make decisions and haven’t appointed attorneys, the responsibility often falls to social services or the courts. These strangers may make choices that you would never have made for yourself.
This is particularly important if you’re a business owner. I’ve worked with entrepreneurs who became temporarily or permanently incapacitated without proper planning in place. The impact on their businesses – and their families’ financial security – was devastating. Some business owners choose to create separate LPAs for their business assets, appointing different attorneys who understand their commercial affairs, whilst having different attorneys for personal matters.
The beauty of LPAs is that they put you firmly in the driver’s seat. You choose who makes decisions about your money, your property, and your healthcare. You’re not leaving these vital choices to bureaucrats or courts who don’t know you or your values.
When should you consider making LPAs?
You can only create LPAs whilst you still have mental capacity. Once that capacity is lost, it’s too late. Your family would then need to apply to the Court of Protection for a Deputyship order, which is not only much more difficult to obtain but also significantly more expensive and time-consuming.
This is why I always advise clients to consider LPAs sooner rather than later. Anyone over 18 can make them, and there’s no upper age limit for when they become useful. I often help clients create their LPAs alongside updating their wills – it’s an excellent opportunity to review all their affairs comprehensively.
Don’t fall into the trap of thinking “I’m too young” or “I’ll sort it out later.” Capacity can be lost at any age due to accidents, illness, or temporary conditions. The peace of mind that comes from knowing you’re properly protected is invaluable.
Getting your lasting power of attorney right
Creating a lasting power of attorney might seem straightforward, but there are numerous pitfalls that can render them invalid or ineffective. The application process involves specific legal requirements, and the consequences of getting it wrong can be severe.
At DJH, we are experienced solicitors who can guide you through every step of the process, ensuring your LPAs are properly drafted, witnessed, and registered. We’ll help you choose the right attorneys, understand the scope of their powers, and ensure everything complies with current legislation.
We also provide ongoing support, helping you understand your attorneys’ responsibilities and assisting with any future changes you might need to make.
If you’d like to discuss your lasting power of attorney needs or have any questions about protecting your future, please don’t hesitate to get in touch. We’re here to provide the expert guidance and peace of mind you deserve.
Contact us today to arrange a consultation and take the first step towards securing your future.
