Lasting Power of Attorney: Your Complete Guide
Protect Yourself, Your Finances and Your Future
Protect Yourself, Your Finances and Your Future
A Lasting Power of Attorney (LPA) is one of the most important documents you can put in place as part of your wider estate planning.
A Will decides what happens to your estate after you die. An LPA helps protect you during your lifetime. It allows people you trust to make decisions on your behalf if you become unable to make those decisions yourself.
You don't have to be elderly to need an LPA. An accident, serious illness or other unexpected event could affect your ability to make or communicate decisions at any age.
Please note: This guide relates to the law in England and Wales.
A Lasting Power of Attorney is a legal document that lets you appoint one or more people you trust to make decisions on your behalf.
You can only make an LPA while you still have the mental capacity to understand what you are doing. Mental capacity means being able to understand and make a particular decision at the time it needs to be made.
This is why it is so important to put an LPA in place before you need it.
There are two different types of LPA in England and Wales. You can make either one or both, depending on your circumstances.
This type allows your chosen attorneys to make decisions about your finances and property (within the authority you give them). This can include bank and building society accounts, bills and regular payments, investments, tax affairs, benefits and pensions, property, mortgages and other financial matters. It can be especially valuable if you become unable to manage your money yourself.
This type allows your attorneys to make certain decisions about your personal welfare if you lack the mental capacity to make those decisions yourself. This can include where you live, your day-to-day care, your personal welfare, medical treatment, who you have contact with, and life-sustaining treatment (if you have specifically given your attorneys that authority). It can only be used when you lack the mental capacity to make the relevant decision yourself.
Do I need both types? Many people choose to make both. They cover different areas of your life and provide different kinds of protection, meaning the people you trust can support you with your finances as well as certain health and care decisions if you lose mental capacity. Whether you need one or both depends on your individual circumstances.
Many people assume that their spouse, partner or children will automatically be able to step in if they become unable to manage their affairs. This is not necessarily true.
Being a close family member does not automatically give someone the legal authority to make decisions about another adult's finances or property just because that person has lost mental capacity.
Without a suitable LPA, someone may need to apply to the Court of Protection to become a deputy. Deputyship is a separate legal process that can involve applications, ongoing responsibilities and costs. Most importantly, it means you have not chosen your own attorney in advance.
An LPA allows you to decide who you trust to act for you while you still have the mental capacity to make that choice.
If you lose mental capacity and do not have a valid Property and Financial Affairs LPA in place, your family may need to apply to the Court of Protection for a deputyship order so that someone can manage your finances.
This process can take time and involves a formal application. The court, rather than you, decides who is appointed.
This is one of the main reasons people choose to put an LPA in place early.
The rules are different for each type of LPA.
This can be useful if you want someone you trust to help manage your finances while you are still able to make your own decisions.
Making an LPA does not mean you automatically lose control of your affairs.
Choosing your attorneys is one of the most important decisions you will make when creating an LPA. Your attorney should be someone you trust and who understands the responsibility involved.
You can appoint:
If you appoint more than one attorney, you can choose whether they must make decisions jointly (they all have to agree) or jointly and severally (they can act together or independently). It is important to think carefully about which option suits your situation and to discuss the role with the people you want to appoint.
Can I put restrictions on my attorneys? Yes. When creating an LPA you can include instructions and restrictions about how your attorneys should act. This gives you more control over how the LPA works. Instructions need to be drafted carefully, as unclear or impractical wording can cause problems later. Professional guidance can help make sure your wishes are expressed clearly.
"LPAs are only for elderly people."
Not true. Mental capacity can be affected by illness, injury or an accident at any age. An LPA is about planning for the possibility that you may not be able to make decisions for yourself in the future, whatever your age.
"My spouse can automatically manage everything for me."
Not necessarily. Marriage or being in a relationship does not automatically give your partner authority to make all financial or welfare decisions on your behalf if you lose mental capacity. An LPA gives someone you trust the legal authority to act within the scope of the document.
"I can make an LPA when I need it."
Only if you still have mental capacity. You must be able to understand the LPA and the authority you are giving when you make it. If you have already lost the necessary capacity, it may be too late and your family may need to consider deputyship instead.
"Making an LPA means giving up control."
No. Creating an LPA allows you to choose who you trust and set out any instructions or restrictions you want. A Property and Financial Affairs LPA can also be useful while you still have capacity if you want someone to help with your finances.
"My Will covers this."
No. A Will deals with your estate after your death. An LPA deals with certain decisions that may need to be made during your lifetime if you are unable to make them yourself. They serve completely different purposes and work well together as part of a wider estate plan.
"An LPA is only needed if I have dementia."
No. Loss of mental capacity can happen for many reasons, including serious illness, injury or an accident. Planning for the unexpected is one of the key reasons to consider an LPA.
A comprehensive estate plan often includes more than just a Will.
Together, these documents form important parts of a wider estate planning strategy. Depending on your circumstances, your plan may also involve Trusts, Inheritance Tax planning and other arrangements.
At Swift Legacy Estate Planning Consultancy, we believe creating an LPA should be straightforward and easy to understand. We will take the time to understand your circumstances and explain the different options available to you, helping you choose the right people to act for you and put suitable arrangements in place.
We discuss your circumstances, family and what you want your LPA to achieve.
We explain the difference between Property and Financial Affairs and Health and Welfare LPAs and discuss who you may wish to appoint as your attorneys.
Your LPA documents are prepared around your wishes and circumstances. We explain the paperwork and give you the chance to review everything before proceeding.
An LPA must be registered with the Office of the Public Guardian before it can be used. We help you understand the registration process and what is required.
At Swift Legacy Estate Planning Consultancy, our current LPA service starts from £325 for a single LPA. If you want both a Property and Financial Affairs LPA and a Health and Welfare LPA, we also offer a combined package at a reduced rate. We will explain all applicable costs clearly before you proceed.
| Single LPA (Property & Financial, or Health & Welfare) | From £325 |
| Both LPAs Together | From £545 |
| Mirror LPAs for Couples | From £995 |
Prices include VAT, drafting, vetting and all legal checks. There is also a separate government registration fee payable to the Office of the Public Guardian. Fee reductions or exemptions may be available to some people depending on their circumstances.
Protect Your Future With Swift Legacy
You can spend years planning your finances, protecting your home and building your family's future. But what happens if you suddenly become unable to make important decisions for yourself? A Lasting Power of Attorney gives you the opportunity to choose who you trust to help manage certain aspects of your affairs if you cannot do so yourself. Don't wait until you need an LPA.
This article is provided for general information only and does not constitute legal or financial advice. Lasting Powers of Attorney are subject to specific legal requirements, and individual circumstances vary. Appropriate professional advice should be obtained where required.
Book a free, no-obligation consultation and let's talk about protecting your future.