Lasting Powers of Attorney

Everything You Need To Know About Lasting Power of Attorney

27 March 2020 by Mark Tucker

As we get older, the risk of Dementia can come into play, as well as other long-term illness that may affect everyday life. Our mental capacity can become lesser too. This is where it is worth considering the benefits of appointing a Lasting Power of Attorney.

Discussing the possibility of losing our faculties is not an easy conversation; or a situation we like to think about. But the reality is, if you were to suffer a stroke, serious accident or dementia without something being in place first, it would likely make the situation worse.

If for example, you lose mental capacity, your relatives cannot simply just take over your everyday tasks, such as your banking, paying utility bills and making decisions on your behalf. They need consent and power to do.

Even if the money is for your care, they cannot simply access your bank accounts without authority. Unless you’ve a Power of Attorney, loved ones would need to apply through court, which can be long and costly.

Part of planning ahead is to consider Lasting Power of Attorney (or LPA). In this article we will discuss what Lasting Power of Attorney is, how much it costs, what mental capacity is and why you should considering setting a LPA up.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (or LPA) is a legal document where someone (while they still have mental capacity) nominates a relative or trusted friend to look after their affairs if they lost capacity.

There are two types of Lasting Power of Attorney: one for Finances and Property and one for Health and Welfare. You can choose to have the same person(s) for both, or choose separate representatives.

If you require the same individual to have power of attorney over both aspects of your care, then you will have to fill out the two forms separately.

It’s important to note, you do not suddenly give up control once you have set up an LPA. You can choose whether it can be used either before, or only when, you lose mental capacity.

For example, let’s say you have an accident and are in a coma. If a decision needs to be made whilst you are in this comatose state, your representative will make decisions. If you wake, with capacity, you can then make decisions again.

How much does a Lasting Power of Attorney cost to set up?

There’s a compulsory cost of £82 to register each Power of Attorney in England and Wales (£77 in Scotland and £127 in Northern Ireland). This means it costs £164 (England & wales) to register both a property and financial affairs LPA and a health and welfare LPA .

There are also exemptions on fees depending upon certain benefits. It is possible to set up a Lasting Power of Attorney on your own, although you may choose (or need) to employ professional help.

Why you should consider setting up Power of Attorney…

Most people tend not to think about it until they’re older, but anyone over the age of 18 can have a LPA. It is a good idea for people in potentially dangerous jobs that might cause them to lose mental capacity (such as firefighters and construction workers), to have a LPA ready.

Every day we make decisions about our lives. The ability to make everyday decisions about our lives is otherwise known as/called ‘mental capacity’. Say for example, someone has suffered a brain injury, or a stroke, or has a learning disability or dementia; they may not be able to make decisions some, or all of the time.

A LPA isn’t something just to be associated with ‘getting old’. It is advisable to have something in place in case you have an accident at work that leaves you incapacitated (for example, in a coma) and need people to make decisions for you.

The Mental Capacity Act 2005 says a person is unable to make a decision if they can’t do one of the following:

understand information relevant to a decision;
retain that information long enough to make the decision;
use or weigh that information;
or communicate the decision.

When you make a Power of Attorney in England and Wales, a ‘certificate provider’ decides if you’re capable of making that choice. This can be someone you’ve known for two years or someone with relevant professional skills.

What happens if I don’t make/have a LPA?

If you don’t have an attorney in place, and later become unable to make certain decisions for yourself, there may be a time when no one can legally make decisions for you. This can make things such as paying bills, care costs, or making decisions about your future care, difficult.

In this instance, someone may need to apply to the Court of Protection to become your deputy. This gives them similar powers to that of an attorney. A relative or friend can apply to be your deputy, or a professional may be appointed. The process of becoming a deputy is a lot more time-consuming and expensive than setting up a LPA. A deputy must also do some things on an ongoing basis, such as paying an annual fee and submitting an annual report.

Setting up a Lasting Power of Attorney ensures that whatever happens in the future, you get the peace of mind that comes from knowing your attorney is able to support you and make the best legal choices for you.

At MT Legal Services, we offer expert advice and professional guidance regarding the different levels of powers of attorney that can be beneficial to you at a later stage

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