Lasting Powers of Attorney
This is an article on Lasting Powers of Attorney by Richard Patterson, a member of NLH Solicitors LLP in Worthing.
Whilst most people are aware of the need to make a Will, fewer people consider what would happen if they became unable to manage their affairs. The solution is simple; in addition to making a Will you should also make a Lasting Power of Attorney.
Lasting Powers of Attorney (LPAs) replaced Enduring Powers of Attorney (EPAs) with effect from 1st October 2007. However, existing EPAs will continue to be valid notwithstanding the introduction of LPAs.
What is an LPA?
An LPA is the legal document which authorises someone (the attorney) to make decisions on behalf of someone else (the donor). EPAs were limited to a person's financial affairs. However, LPAs can extend beyond dealing with a person's financial affairs to personal welfare matters and decisions. This is the big advantage that LPAs have over EPAs.
Decisions relating to financial affairs - this could cover for example operating a bank account, making investment decisions and dealing with property etc.
Decisions relating to personal welfare - the attorney could be given authority to decide day to day issues to do with welfare and also decisions such as where the donor will live and care arrangements. It can also allow the attorney to give or refuse consent to medical treatment if the donor wishes the attorney to have this power.
How is an LPA created?
An LPA is entered into using a prescribed form with different forms required for powers relating to financial affairs and those relating to personal welfare. The donor can appoint one or more attorneys and if more than one whether they are to act together or not. Unlike an EPA an LPA cannot be used until it has been registered with the Court of Protection.
An LPA can be revoked provided the donor has mental capacity and so like a Will can be changed.
What should you do?
We would strongly advise that you make an LPA. If you lose mental capacity and do not have an LPA someone will need to make an application to the Court of Protection to be appointed as your deputy. This is a lengthy and expensive process and there is a duty on the deputy to report to the Court on an on-going basis.
As these are quite complex legal documents, care should be taken when creating an LPA and we recommend that you obtain our professional advice to ensure that it meets your specific requirements.
- NLH Solicitors LLP
- Chapel House
- 1 Chapel Road
- Worthing
- West Sussex
- BN11 1LJ
- 01903 234556
- www.nlhlaw.co.uk
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