You’ve probably seen Lasting Power of Attorney (LPA) in the news lately, but do you actually know what it is and why it matters?
Most of us understand the importance of having a will, but an LPA is just as crucial – and something you need to have in place while you’re still able to make decisions.
What is a Lasting Power of Attorney?
A will decides what happens to your assets when you pass away, but a Lasting Power of Attorney decides what happens if you’re still alive but unable to make financial decisions yourself. This could be due to an accident, a stroke, or something like early dementia – and the reality is, these things can affect anyone at any age.
An LPA is a legal document that allows you to nominate a trusted friend or family member to look after your affairs if you ever lose capacity. You can appoint one or more people to act on your behalf and decide how they should work together to make decisions for you.
You Stay in Control
Putting an LPA in place doesn’t mean you’re handing over control of your finances right away. You can choose whether it takes effect only if you lose mental capacity or if it can be used sooner. Your chosen representatives (known as ‘attorneys’) should only ever make decisions for you if you’re unable to make them yourself at the time.
Why You Shouldn’t Wait
We know it’s not exactly a fun thing to think about, especially if you’re fit and healthy, but an LPA can only be set up while you have mental capacity. Once that’s lost, it’s too late.
If you don’t have an LPA in place and something happens to you, your loved ones will have to apply to the court to become a ‘deputy’ to manage your affairs. This is a long, stressful, and expensive process. Until it’s sorted, no one will be able to access your finances, pay your bills, cover care costs, or even make key business decisions on your behalf.
How to Set Up an LPA
The good news? Setting up an LPA is fairly straightforward. You can do it online via gov.uk for free, but the LPA must be printed, signed, and witnessed by all involved before it can be registered.
It takes around 8 to 10 weeks to register an LPA with the Office of the Public Guardian, and there’s a compulsory registration fee:
- £82 in England and Wales
- £96 in Scotland
- £165 in Northern Ireland
If you earn less than £12,000 per year, you may be eligible for a reduced fee of £41.
Don’t Leave It Too Late
An LPA is one of those things you hope you never need – but having it in place means you and your loved ones are protected, no matter what happens. If you haven’t set one up yet, now’s the time to get it sorted!
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