Lasting Power of Attorney:
What It Is & Why You Need One

A lasting power of attorney (LPA) is a legal document that allows you to appoint someone to make decisions on your behalf if you become incapacitated. There are two types of LPA in the UK: one for property and financial affairs, and another for health and welfare. Both are essential components of a comprehensive estate plan.

Property and Financial Affairs LPA:

This type of LPA allows your appointed attorney to manage your financial matters, including paying bills, managing bank accounts, and selling property. It can be used as soon as it is registered, with your consent.

Health and Welfare LPA:

This LPA allows your attorney to make decisions about your medical care, living arrangements, and daily routine if you lose the mental capacity to make these decisions yourself. It only comes into effect when you are unable to make your own decisions.

Why You Need an LPA:

1. Control: An LPA ensures that your affairs are managed by someone you trust, according to your wishes.
2. Avoiding Disputes: Without an LPA, your family may need to apply to the Court of Protection to make decisions on your behalf, which can be time-consuming and costly.
3. Peace of Mind: Knowing that your affairs will be handled by a trusted person can provide peace of mind for you and your loved ones.
4. Continuity: An LPA ensures continuity in the management of your affairs if you become incapacitated, avoiding disruptions and potential financial problems.

How to Set Up an LPA:

1. Choose Your Attorneys: Select one or more trusted individuals to act as your attorneys. You can also appoint replacement attorneys in case your primary choices are unable to act.
2. Complete the Forms: Fill out the relevant LPA forms, which can be obtained from the Office of the Public Guardian (OPG) website.
3. Sign and Witness: You, your attorneys, and witnesses must sign the forms.
4. Register the LPA: Submit the forms to the OPG for registration. There is a fee for registering each LPA.
5. Notify People: You can choose to notify certain people about the LPA, who can raise concerns if they believe you are being pressured into making it.

By setting up LPAs for both property and financial affairs and health and welfare, you can ensure that your wishes are respected and your affairs are managed effectively if you become unable to make decisions for yourself.