Lasting Powers of Attorney: What are they & why do I need one?

We never know what's around the corner. If something happens to you or someone close, are you prepared?

• If you become unwell, how will you take care of day-to-day tasks and 'life administration', such as paying bills or notifying the bank?
• If you become more seriously unwell or lose the ability to make decisions yourself, is someone you trust able to make decisions about your care?
• If you are diagnosed - either now or in the future - with a condition such as dementia, will someone close to you be able to make decisions on your behalf?

Lasting Powers of Attorney (“LPAs”) offer you vital flexibility, protection and reassurance in the event that you become unable to make decisions or act on your own behalf.

And you don't need to be older or unwell to need the security of an LPA; think about how you would take care of your affairs if you had an accident or found yourself in hospital.

So, what is an LPA and why should you get them in place now?

What is a Lasting Power of Attorney?

When you grant an LPA, you appoint attorneys, or representatives, to act on your behalf and make decisions in respect of your health, welfare, property and financial affairs in the event that you become unable to do so yourself.

LPAs are invaluable for anyone close to people who may have been taken ill, who are in care or who may have lost the physical or mental capacity to look after their own affairs.

Through your LPA, trusted attorneys that you choose and appoint are able to access finances, deal with property and make decisions relating to your health and care.

What types of Lasting Power of Attorney can I grant?

There are two types of LPA:

1. Property & Financial Affairs LPA

This LPA allows your attorney(s) to act on your behalf in dealing with financial affairs such as paying bills and dealing with your bank, buying and selling property, paying your mortgage and investing money for you.

You may choose to limit the actions an attorney may take, or grant attorney power to make all decisions. Your attorney must keep records and accounts when dealing with your financial affairs, and keep your money separate to their own. You don't need to have lost mental capacity for your attorney to make decisions on your behalf; for example, you may be in hospital or out of the country.

2. Health & Welfare LPA

The “health and welfare” LPA can only be used by your attorney(s) if you have lost mental capacity, and covers decisions such as where you will live, the medical care

you should receive, and welfare matters such as decisions about the people you should see, your washing and dressing needs, and your diet.

Your LPA may include specific instructions that you wish your attorney to follow, and you will also choose whether your attorney should make decisions about provision of life-sustaining treatment.

How many attorneys can I appoint?

You may appoint as many attorneys as you wish, and they can be anyone you choose. Attorneys must be over the age of 18.

How can I make sure that attorneys act in my best interests?

It's important to appoint attorneys you trust; they do not need to be family members, just people that you trust to make decisions that are in your best interests. They should understand and protect your wishes, and be willing to support your care, however long or short-term that may be.

Lasting Powers of Attorney are registered with the Office of the Public Guardian, which supervises the LPA system and takes action against those who may be abusing their position.

How much does an LPA cost?

Each LPA costs £82 to register, so if you are registering two LPAs, your registration fees will be £164. Some exemptions are available for those on low incomes or benefits recipients.

Through your Octopus Legacy Services benefits, our panel of Wills and estate planning specialists will help you to complete your LPAs and registration. Fees vary but expect to pay around £240 for each LPA.

What might happen if I don't make Lasting Powers of Attorney?

Without LPAs, important decisions about your financial and health affairs may not be made by people you trust, or who have your best interests at heart.

Decision-making becomes harder for those close to you if they don't have formal authority to make decisions for you.

LPAs are cost-effective, timesaving, take effect quickly and make your wishes expressly clear for those who need to understand them.

This article has been prepared by Octopus Legacy Services and is not intended to constitute legal advice.

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Make your Lasting Powers of Attorney with Octopus Legacy Services

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Our panel of professional Will and LPA writers, solicitors and estate planners is tried and tested, delivering honest advice that protects your interests, family, and wellbeing.

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Call us on 0800 024 6121 for more information & to make your Lasting Powers of Attorney today.