Read more articles in: Blog, Emma Sommerville, News

LPAs – What are they and how do they work?

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone you trust (known as your attorney) to make decisions on your behalf if you ever lose the ability to make those decisions yourself.

There are two types of LPAs:

Property and financial affairs LPA – This covers decisions about your money, property, and investments. Your attorney can help with tasks such as paying bills or managing your bank account.
Health and welfare LPA – This deals with decisions about your medical care and where you live. Your attorney can only make these decisions if you cannot make them yourself.

Our Senior Associate and LPA specialist, Emma Sommerville, says: “Having an LPA in place ensures that if you are no longer able to manage your affairs, someone you trust can step in to support you.”

She adds: “It is a good idea to consider setting one up while you are in good ealth, as it offers peace of mind for the future.”

How do LPAs work from a legal perspective?

From a legal standpoint, once you have created an LPA, it must be registered with the Office of the Public Guardian to become valid.

The registration process involves submitting the completed forms along with a fee.

Only after registration can your attorney begin acting on your behalf, and even then, certain rules apply:

For a property and financial affairs LPA, your attorney can act as soon as the LPA is registered, if you have authorised them to do so. They do not need to wait until you have lost mental capacity, giving you flexibility to delegate tasks like managing your finances if you find it difficult.
For a health and welfare LPA, your attorney can only make decisions when you have lost the ability to make them yourself. This ensures that you remain in control of your own healthcare choices as long as you are able.

As Emma points out, “It is important to choose your attorney carefully, as they will have significant power to make decisions on your behalf.

“You can set restrictions in the LPA document to limit their authority or provide specific instructions about how they should act.

“Legally, your attorney is bound by the principles set out in the Mental Capacity Act 2005, meaning they must act in your best interests at all times.”

If you do not have an LPA in place and lose the ability to make decisions, your loved ones may need to apply to the Court of Protection for the right to make decisions for you, which can be time-consuming and expensive.

An LPA avoids this situation and gives you control over who handles your affairs.

If you’d like to make an LPA, please get in touch with our team.