What is a Lasting Power of Attorney?

Posted: 19 October 2023

A Lasting Power of Attorney (“LPA”) is a legal document which allows you to appoint, people of your choosing, called Attorneys, to make decisions for you when you are unable to make them for yourself.

There are two types of Lasting Powers of Attorney: one for Property and Financial decisions and the other for decisions about health and care. You do not need to make both, but many people do.

Lasting Powers of Attorney have a strict procedure for their creation. Once created, they will continue for the duration of your lifetime, even if you lose capacity unless they are revoked.

Before a Lasting Power of Attorney can be used, it must be signed by all parties. A certificate of capacity must be signed and the document must then be registered with a specialist Court, the Office of the Public Guardian.

Property and Financial Affairs LPA

A Property and Financial Affairs LPA will allow your Attorneys to make decisions about your money and your home either under your instruction. Alternatively, if you should lose capacity, on your behalf.

The LPA will give your Attorneys full control over your property and finances including:

• Managing your Bank Accounts and investments
• Claiming and receiving benefits on your behalf.
• Paying your bills, household expenses, care fees etc.
• Buying, selling or renting any property that you own.
• Making gifts – limited to making gifts to people who are related to or connected with you for special occasions such as birthdays.

Health and Welfare LPA

A Health and Welfare LPA will allow your Attorneys to make decisions about your health, care and welfare.  Decisions about your personal welfare are wide-ranging.  They can include decisions about where you live, how you are cared for and what health care you receive. They can also include specific decisions about medical treatments, life sustaining treatment and more general decisions.

Unlike a Property and Financial Affairs LPA, the Health and Welfare LPA can only be used by your Attorneys when you have lost the capacity to make decisions.

 Is there an alternative to a Lasting Power of Attorney?

The alternative to making a Lasting Power of Attorney

can be costly and time consuming. If no Attorney has been appointed under an LPA and you become mentally incapable. Then a relative or other interested person would have to apply to the Court of Protection for a Deputy to be appointed.

An application to the Court of Protection requires a doctor’s certificate, a considerable amount of paperwork and form filling and a hearing to prepare an Order.  The costs of this can be significantly more than the cost of an LPA.

There are also administration costs to pay when a Deputy is appointed. These include annual supervision/administration charges; annual accounts have to be prepared (and paid for, if you use a professional for this.) In addition, an annual insurance bond is required by the Court. These charges and requirements do not apply to a registered LPA.

 How can THB Solicitors help?

Here at THB our team of specialists can explain the benefits of a Lasting Power of Attorney. We can assist you in drawing up the documents to ensure that should the unthinkable happen you a have the appropriate protection in place.

Our fees for preparing these documents are as follows:

One Lasting Power of Attorney

(for either health and welfare or

property and financial affairs)                 £400 plus VAT (£480)

Two Lasting Powers of Attorney             £650 plus VAT (£780)

(for one person to have both health

and welfare and property and financial

Affairs)

OR

(for two people to have one LPA

For either health and welfare or property

and financial affairs)

Four Lasting Powers of Attorney            £900 plus VAT (£1,080)

(for two people to have both health

And welfare and property and financial affairs)

There is a Court fee to register these documents so that they become valid for use and this is £82 per document.

For more information, please contact our team today at either our Shoeburyness Office, call 01702 298 282 or Chelmsford office call 01245 4393 959 or send an email.