The Importance of Powers of Attorneys

What is a Lasting Power of Attorney (LPA)

A Lasting Power of Attorney (LPA) is a document that sets out who you would want to deal with your affairs if you are unable to do so yourself.

An LPA is extremely useful should you suffer sudden loss of mental capacity, or if you were to suffer a long-term illness such as Alzheimer's.

Why should you make a Lasting Power of Attorney?

You never know what is around the corner or when you may be rendered unable to sign documents. Severe illness, deterioration of your health over time, dementia or even an accident can result in you being unable to manage your own affairs.

If you do not have an LPA and you lose your mental capacity, you will need a deputyship order. This is more expensive and could result in the wrong person becoming your deputy, for example an estranged child, a spouse you are separated from or even a professional person you have never met.

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Different Types of Lasting Powers of Attorney

There are different types of LPA which are responsible for handling various aspects of your affairs, these types of LPA are:

LPA for Property and Financial Affairs - used for dealing with day-to-day financial affairs including:

• Investing money
• Selling or transferring property
• Collecting benefits
• Paying bills

This LPA looks after the financial interests of the donor and can be used if they are still capable but have given their consent.

Registering your LPA

An LPA cannot be used unless it has been registered with the Office of the Public Guardian and registration can take around 12-13 weeks.

After this, the LPA for Property and Financial Affairs can only be used with consent from the donor or in the result of mental incapacity, it is not automatically used.

Signing an LPA

A donor will need someone to certify that they have the mental capacity to sign their LPA, and it needs to be signed before an independent witness. Attorneys also need to sign before a witness and the LPA will not be valid until both parties have signed.

Another person will also be named in an LPA who is told when it has been registered to ensure that the donor is happy for it to be and that an imposter is not trying to register in the place of the attorneys.

Choosing your Attorney

To avoid complexity, it is advisable that you choose no more than four attorneys as only four people can be appointed as trustees of property.

As the role of an attorney is a very personal one with a lot of responsibility, a close family member is a good choice, but if this is not possible then you may wish to consider a close and trusted friend or even a professional advisor such as a solicitor, or perhaps even a combination.

Who should make an LPA?

• A cohabitee: a partner is unable to manage your affairs or make health and care decisions for you.
• Someone in their second marriage: an LPA can set out who is to deal with your affairs between your spouse and any children.
• An elderly person without family: an LPA can specify who you trust most to manage your affairs.
• Someone who owns their own business: an LPA can set out who will manage the business if you are incapable.
• A couple who co-own a property: the property cannot be sold without two separate signatures so an LPA can define who can sign for you should you be incapacitated.

For more information on making a Lasting Power of Attorney and to find out how we can help you, call our Private Client team on 01234 358080 (option 2) or email us at info@premiersolicitors.co.uk with details of your enquiry and one of our team will contact you.