What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) allows an individual to appoint one or more people they trust to help manage their affairs when they are unable to make important decisions independently or, to use the legal term, lose capacity. Common reasons for people losing capacity typically include debilitating health conditions such as dementia. Alzheimer's disease or the effects of extreme old age.
LPAs are designed to help people put in place protection against future loss of mental capacity in advance, giving peace of mind that someone will be able to look after you, even if you are not able to care for yourself.
There are two main types of LPAs, one covers health and welfare arrangements and the other deals with property and financial matters. These are both separate documents so it is important to consider which of these (or both) will best suit the needs of you and your family.
How does it work?
LPAs are legally binding, but only take effect once it has been established that the donor (the person who the LPA applies to) has lost capacity, by a doctor or a health professional.
Once the loss of capacity has been established, the attorney(s) (the person or people who have been appointed by the donor to make decisions on their behalf) are able to assist the donor with their health, welfare or financial and property needs.
For the health and welfare LPA these decisions could include:
- Medical care – such as choices regarding medication and treatment options
- Daily routine involving eating, dressing and washing
- Where the donor lives, for instance in a care home or assisted living facility
For the financial and property LPA donors can make the following decisions on behalf of the donor:
- Managing their bank accounts
- Selling owned property or buying a property for the donor to live in
- Paying bills, debts and tax owed by the donor using their money
- Managing investments, pensions and benefits
Healthcare organisations and financial institutions such as the NHS or banks will usually require evidence of a registered LPA to allow the attorney the authority to make relevant decisions on behalf of the donor, can be provided in the form of a certified copy of the LPA.
Can an LPA be made after a person has lost capacity?
LPAs must be made in advance of a person losing capacity, unfortunately it is too late to create an LPA once someone has already lost capacity.
This is because technically a person who has lost capacity is judged not able to make decisions independently, including the decision to appoint LPA attorneys. At this stage the only option open is to apply to the Court of Protection for them to appoint a deputy on your behalf, which may be a long and costly process.
So, when it comes to creating an LPA and appointing your attorneys, we always recommend planning ahead!
How can I create an LPA?
A qualified solicitor can help guide you through the process of creating a personalised LPA from scratch.
Once you are happy with and all appointed attorney(s) have given their consent in the form of a signature, the LPA will then be sent to the Office of the Public Guardian (OPG) an official government body that oversees all powers of attorney, to be registered.
The OPG will then check the LPA and make a decision on whether the LPA can be successfully registered within 16 weeks.
How can we help?
Here at Edward Hughes Solicitors, we have helped hundreds of people ensure that their health and finances are looked after by someone they trust, should they ever lose capacity.
Learn more about how we can help you create an LPA for either yourself or a family member here.