Lasting Powers of Attorney - A Factsheet
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint people that you trust, to manage your financial affairs and also make decisions regarding your health and welfare should you no longer be able to do so.
There are two types of LPAS. The first relates to your financial affairs and is known as a Property and Affairs LPA. This document allows someone to step in and manage your finances and property just in the same way you would, should you no longer be able to do so. This is not limited to if you lose mental capacity. These can also be used with your consent as soon as they are registered with the Office of the Public Guardian. You can give guidance and instructions to your chosen attorneys about how you wish your property and finances to be managed should you wish to do so or alternatively you can choose to leave the decision-making to your attorneys and trust that they will act in your best interests.
The second type of LPA is known as the Health & Welfare LPA. Again, this document allows your chosen attorneys to make decisions about your health, but the difference is they are only able to make these decisions should you lose capacity and not be able to make these decisions yourself. You can also provide instructions and guidance under this LPA as to how your attorneys are to make decisions. This document also covers life-sustaining treatment. You can therefore either give authority for your chosen attorneys to give or refuse consent to life-sustaining treatment on your behalf.
If you chose to make an LPA, this will need to be signed by you and also your chosen attorneys. Once completed, this will then need to be sent to the Office of the Public Guardian for registration. The registration process takes approximately two months to complete. Once registered, the documents are ready to be used when necessary.
WHAT ARE THE BENEFITS OF MAKING AN LPA?
Peace of mind to know that you have someone you trust to make decisions on your behalf in the future if you are not able to do so.
An LPA will make life easier for family and friends. It is a very difficult and costly process if you do not have an LPA in place and need to apply to the Court to appoint someone to make decisions on your behalf.
WHO CAN MAKE AN LPA?
Anyone over the age of 18 and who has mental capacity can make an LPA. Once a person has lost mental capacity they are no longer able to make an LPA.
WHO CAN ACT AS AN ATTORNEY?
You can choose anyone you wish to act as an attorney; however, they must be over the age of 18 years. When considering an attorney for your property and financial affairs, it is important to note that this person cannot be bankrupt.
It is very important that the person you decide to appoint, you trust completely. It is also important to consider whether they will have the time to step in and assist. Most people will appoint a family member or a friend to assist them. You can, however, request a professional, such as a Solicitor, to act on your behalf should you wish to do so.
If you decide to appoint more than one attorney, you can decide how you wish for them to act. They can either act jointly, which means they all have to agree, or they can act jointly and severally, which means they can act together or on their own. The other option is to act jointly for some decisions and severally in respect of others.
When making decisions on your behalf, your attorneys must act in your best interests, must consider your past and present wishes, must not take advantage of you to benefit themselves and must keep your money separate from their own.
Should you wish to discuss LPAS further then please talk to a member of the Private Client team who will be pleased to assist you and answer any other questions you may have.
