What is Lasting Power of Attorney: A Comprehensive Guide

Understanding what a Lasting Power of Attorney (LPA) is has never been more important. On the whole, people not only have a far greater life expectancy, but they tend to have much more complex healthcare and financial decisions to make.

A LPA will ensure that your wishes are protected if you can no longer make decisions for yourself, however, many still fundamentally misunderstand what an LPA actually does, how it works, and why it’s so important.

What Is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone you trust to make financial, health and welfare decisions on your behalf and act in your best interests if you lose the ability to do so yourself.

To put it simply:
An LPA protects you if you become unable to make decisions due to illness, accident, or you come to lack mental capacity.

Why Lasting Power of Attorney Matters

Many people assume their spouse, partner or children can automatically make decisions for them if they’re unable to do so, however without formal legal authority, their powers will be limited.

Without an LPA:

• Family members may lack the legal power to access your bank accounts.
• Healthcare professionals may make decisions you wouldn’t have chosen.
• Loved ones may have to undertake an expensive, lengthy, and stressful legal process to take charge of your affairs at a time when they are already under a lot of personal strain.

An LPA removes all of that uncertainty by giving clear authority to someone you choose, this can be a friend, family member, or even a designated health and welfare attorney.

What are the Two Types of Lasting Power of Attorney

There are two main types of LPA, and each covers a different area of your life:

1. Health and Welfare LPAs

This LPA allows your chosen attorney to make health and care decisions, these include including:

• Daily routines
• Medical care and treatment decisions
• Where you live (home or care home)
• End-of-life decisions, such as the right to refuse life sustaining treatment

It’s important to note that a Health and Welfare LPA is an advance decision that only takes effect if you lose mental capacity to make your own decisions.

Under the Mental Capacity Act, everyone is assumed to have capacity unless proven otherwise, and all decisions made for someone who lacks mental capacity must be made in their best interests.

2. Property and Financial Affairs LPAs

This gives your attorney authority over financial and property-related decisions, including:

• Selling or maintaining property
• Handling investments and business affairs
• Managing pensions or benefits, and bills

Unlike the health version, this type can be used while you still have capacity, as long as you give permission.

Who Should You Choose as an Attorney?

Choosing your attorney is one of the most important decisions you’ll make when creating a Lasting Power of Attorney. Your attorney should be:

• Someone you trust completely
• Someone who can handle responsibilities calmly
• Someone organised, especially for financial decisions

You can also appoint more than one attorney and specify whether they must:

• Act jointly (always together),
• Jointly and severally (together or independently)
• Joint for some decisions and joint and several for others.

You may choose to have a family member make medical treatment decisions, and a professional make financial decisions. Alternatively you can have the same person or people for both.

How Do I Set Up a Lasting Power of Attorney?

Setting up an LPA is easier than many people expect. The typical steps include:

1. Choose your attorney

Decide who you want to trust with your health or financial decisions.

2. Complete the LPA forms

There are separate forms for each type of LPA. They can be filled in online or using paper copies.

3. Have them signed and witnessed

The LPA must be signed by yourself, attorneys, witnesses, and a certificate provider whose role it is to confirm that you aren’t receiving undue pressure to sign.

4. Register the LPA

An LPA must be registered with the Office of the Public Guardian before it is considered legally binding.

5. Store your LPA safely

Keep both physical and digital copies in secure but accessible locations.

Are you looking to set up a Lasting Power of Attorney?

Contact our team at Dickinson Parker Hill today and we can help you get started.