Lasting Powers of Attorney – 6 things you need to know

A recent survey has revealed that one in three people do not understand how Lasting Powers of Attorney work.

A Lasting Power of Attorney (LPA) allows you to appoint someone you trust as an attorney, and grants them the legal power to make decisions about your finances and healthcare on your behalf, should you lose the mental capacity to do this for yourself.

1.There are two types of LPA

• Property & Financial Affairs – this allows your attorneys to make decisions about bank accounts, money management and property
• Health & Welfare – this allows your attorneys to make decisions about healthcare and medical treatment

You can get an ordinary or general power of attorney put in place if you need help temporarily, for example if you’re going into hospital. It’s only valid as long as you have mental capacity, and for financial affairs.

An enduring power of attorney was replaced by lasting power of attorney in 2007, although if you had set one up before this date you can still register it and use it – as long as you still have mental capacity.

2. More than 80% of over 55’s do not have an LPA

An LPA has to be created when you still have mental capacity, however a survey by Lloyds Bank published in 2023 found eight in ten over 55’s don’t have one in place.

According to the survey of 2,063 adults, one fifth of respondents said they didn’t know when the right time was to set one up for themselves, or for someone else. Anyone over the age of 18 can create an LPA – often the sooner the better.

3. You still need an LPA in place, even if you’re married

If you’re married or in a civil partnership, you might assume that your spouse will automatically be able to deal with your financial affairs if you lose capacity, but this isn’t the case.

Just four in ten married couples have an LPA in place, according to a survey of 2,000 adults by Scottish Widows. It also found that one in four couples have no plans to put one in place.

4. Your choice of attorney is key

Choosing the right attorney could be one of the most critical decisions you make.

The attorney is the person you choose to act on your behalf, and can be anyone with mental capacity who is aged 18 and over. This could include your spouse, a friend, a family member or a professional.

However, there could be many reasons why your loved ones might not be a good choice for the role, and could leave you open to financial abuse.

5. It could take 6 months to register 

The Office of the Public Guardian (OPG), responsible for processing POA applications, said people should allow up to 20 weeks for a POA to be registered.

Before the pandemic, the average timeframe was around 10 weeks.

It’s therefore important to make sure your document doesn’t contain any mistakes, which would further slow down the process.

6. You can’t create an LPA once you lose mental capacity 

It isn’t possible to create an LPA for someone wo has already lost mental capacity. Instead, members of their family will have to apply to the Court of Protection to be appointed as their deputies. The application process is more expensive than it is for LPA, and the process takes much longer.

Contact Heritage Will Writing on 02380 879243 today to create your Lasting Powers of Attorney.