What Are the 5 Key Things to Know About Lasting Power of Attorney?

You may have heard a lot recently about lasting power of attorney. It allows you to appoint someone you trust to make decisions if you lose capacity. There are two types covering health and welfare and property and financial affairs, and both are important for protecting your future.

Key Lasting Power of Attorney Facts

• There are two types of lasting power of attorney

• You must have mental capacity to set one up

• It only takes effect when properly registered

• Attorneys must act in your best interests

• Without one, decisions may be made by the court

What Is a Lasting Power of Attorney?

A lasting power of attorney is a legal document that allows you to appoint one or more people to make decisions on your behalf if you lose mental capacity.

There are two separate types. One covers health and welfare decisions, such as medical treatment, where you live and care. The other covers property and financial affairs, including managing money, paying bills, and buying or selling property.

Putting both in place ensures that all aspects of your life are protected if you are unable to make decisions yourself.

What Are the 5 Key Points to Understand?

1. There Are Two Types of Lasting Power of Attorney and You Should Consider Both

There are two types of lasting power of attorney and they serve different purposes.

A Health and Welfare LPA allow your attorney to make decisions about medical care, living arrangements and day-to-day wellbeing. A Property and Financial Affairs LPA allow them to manage bank accounts, pay bills and deal with property.

Most people benefit from having both in place to ensure full protection.

2. You Must Create a Lasting Power of Attorney While You Have Capacity

You can only create a lasting power of attorney while you have mental capacity. Once capacity is lost, it is too late to put one in place.

If no LPA exists, family members may need to apply to the Court of Protection to gain authority (Deputyship). This process can be time-consuming, costly, and stressful.

Planning ahead ensures your chosen person can step in without delay.

3. Lasting Power of Attorney Must Be Registered Before It Can Be Used

A lasting power of attorney must be registered with the Office of the Public Guardian before it can be used.

The registration process can take several weeks, so it is important not to leave this until it is urgently needed. Many people choose to register their LPA immediately after it is created. This ensures it is ready to use when required.

4. Your Attorneys Must Act in Your Best Interests

Attorneys have a legal duty to act in your best interests at all times. They must follow the principles set out in the Mental Capacity Act and consider your wishes, values, and preferences.

You can include instructions or guidance within the LPA to help your attorneys make decisions in line with your wishes.

Choosing the right person is essential as they will have significant responsibility.

5. Without a Lasting Power of Attorney, Decisions May Be Made by the Court

If you lose capacity without a lasting power of attorney in place, decisions about your finances or care may need to be made by the Court of Protection.

This can delay important decisions and may result in someone being appointed who you would not have chosen. It can also increase costs and create additional stress for your family.

Having a Lasting Power of Attorney ensures you remain in control of who makes decisions on your behalf.

Lasting Power of Attorney

When Do You Need a Lasting Power of Attorney?

A lasting power of attorney is not just for later life. It can be important at any age.

Unexpected illness or accidents can affect anyone. Having an LPA in place ensures that your affairs can be managed without disruption if something happens.

Many people choose to arrange an LPA at the same time as making a will as part of wider future planning.

Common Mistakes When Setting Up a Lasting Power of Attorney

One common mistake is delaying the process until it is too late and capacity has already been lost.

Another is choosing attorneys without fully considering whether they are suitable for the role. It is also important to ensure the document is completed correctly, as errors can lead to delays or rejection during registration.

Taking professional advice can help avoid these issues.

Frequently Asked Questions

What is the difference between the two types of Lasting Power of Attorney?

A Health and Welfare LPA covers decisions about care and medical treatment. A Property and Financial Affairs LPA covers money, property, and financial matters.

Can I have more than one attorney?

Yes. You can appoint multiple attorneys and decide whether they act jointly or independently.

When does a Lasting Power of Attorney take effect?

A Property and Financial Affairs LPA can be used once registered, with your permission. A Health and Welfare LPA is only used if you lose capacity.

Things to Know About Lasting Power of Attorney

A lasting power of attorney is a simple but powerful way to protect your future. By putting both types in place and planning ahead, you can ensure that decisions about your health and finances are made by people you trust.

If you would like advice on setting up a lasting power of attorney, RJM Solicitors can help. Contact our team in Merthyr Tydfil on 01685 37 37 21 or email info@rjmsolicitors.co.uk to arrange a consultation.