What is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document that allows you (the Donor) to appoint one or more people (the Attorneys) to make decisions on your behalf if you lose the mental capacity to make them yourself, or if you simply no longer want to make them.

Crucially, an LPA is one of the only documents that lets you specify who you want to make decisions for you after you lose capacity. Without it, the process for your family to take control of your affairs is much longer, more expensive, and far more stressful.

🛡️ The Two Types of Lasting Power of Attorney

In England and Wales, there are two different types of LPA, each covering a distinct area of your life:

1. Property and Financial Affairs LPA
   This LPA gives your Attorneys the authority to handle all aspects of your money and property, including:
   •  Operating your bank and savings accounts.
   •  Paying your bills (utility, mortgage, care home fees, etc.).
   •  Collecting your income or benefits.
   •  Selling your property.
   •  Managing your investments.

   This type of LPA can be used while you still have mental capacity, as long as you specify this in the document. This can be helpful if you are abroad or are physically unable to manage your finances.

2. Health and Welfare LPA
   This LPA gives your Attorneys the authority to make decisions about your day-to-day care and medical treatment, including:
   •  Where you live (e.g., in your own home with care, or a residential care home).
   •  Your daily routine (e.g., diet, dress, and activities).
   •  Consenting to or refusing specific medical treatments on your behalf.
   •  Decisions about life-sustaining treatment (if you explicitly allow this in the document).

   This type of LPA can only be used once you have lost the mental capacity to make those decisions yourself.

🔑 Why is an LPA so Important?

Many people assume their next of kin (a spouse or child) will automatically be able to take over if they become ill or have an accident. This is a common and dangerous misconception.

Without an LPA, your family will have to apply to the Court of Protection to be appointed as a Deputy. This process is:

• Slow: It can take many months, leaving your financial affairs in limbo.
• Expensive: There are significant application fees and potential legal costs.
• Stressful: It places a huge burden on your loved ones during an already difficult time.
• Uncertain: The Court decides who is appointed—it might not be the person you would have chosen.

An LPA solves all of these problems by putting you in control and making the process seamless for your family.

🗓️ When Should I Create an LPA?

The simple answer is: now.

You must have the mental capacity to understand and sign the document when it is created. If you wait until you are facing a health crisis, it will be too late.

Creating an LPA is not just for the elderly; it's a vital part of planning your future, alongside making a Will. It provides an essential safety net for anyone who has property, savings, or investments, or who simply wants to ensure they receive the care they desire.

This article is for general information only and not personal advice. Consult a professional for your situation.