TL;DR
In short
- The LPA can address both health and financial issues According to the UK government’s official website, a Legal Power of Attorney (LPA, lasting power of attorney) is a document in which the grantor of the power of attorney (the donor) de…
- Drawing up a power of attorney is neither difficult nor particularly restricted.
- The appointment of a LPA has basically only benefits, as long as the person you appoint is sufficiently competent and trusted.
- Identification of a suitable person The first step to establishing a power of attorney is, of course, to choose your attorney or several attorneys.
- As we have already mentioned, your attorney will really have a lot of decision making power.
An LPA, or Legal Power of Attorney, is a lasting power of attorney that significantly increases your level of financial security and protects you from situations where you are unable to make important decisions yourself. Why should you appoint an Enduring Power of Attorney in the UK, who can do it and who should you appoint? Find out in our article.
What is an LPA?
The LPA can address both health and financial issues
According to the UK government’s official website, a Legal Power of Attorney (LPA, lasting power of attorney) is a document in which the grantor of the power of attorney (the donor) designates one or more people (attorneys) as having the authority to make decisions on his or her behalf. Attorneys may also assist in making such decisions, but this is not as important.
There are two types of LPA powers of attorney in the UK. These include:
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Health and welfare;
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Property and financial affairs.
You can choose between the two types, as well as appointing a universal helper to represent you in both areas of your life. The choice is yours.
Who can draw up an LPA in the UK?
Drawing up a power of attorney is neither difficult nor particularly restricted. All you need to do to appoint your proxy is to be of legal age and of full mental capacity and therefore able to make your own decisions without restriction. You do not need to be a UK citizen or live in the UK.
Why is it worth to establish an LPA?
The appointment of a LPA has basically only benefits, as long as the person you appoint is sufficiently competent and trusted. First and foremost, you need to remember that if you become unconscious, you will not be able to make very important decisions that could weigh on your future. You can dispense with CPR in advance, but many people do not remember such details on a day-to-day basis and it is hardly surprising.
Let’s not kid ourselves - everyone is going to be old one day and it’s worth ensuring your security even if you are no longer at full strength. Remember also that even if you are married, your partner will not be able to decide all your affairs unless they have power of attorney. People who live in an informal relationship are in an even worse situation - in that case, their partners will not even be able to find out about the injured person’s current state of health.
Your attorney can be a family member as well as an attorney or financial advisor
It is also worth remembering that people who run their own businesses often have to make decisions at an express pace - losing your mind after a traffic accident can leave your business paralysed. In such situations, a trusted attorney will be able to protect something you have worked for years to achieve. However, in the case of a financial affairs mandate, we recommend appointing someone with real business and legal expertise - a solicitor, accountant or financial adviser seem to be good performers for this role.
As a Polish mortgage broker in the UK, we are increasingly encountering situations where it is the health of our clients that is deteriorating - this is of course due to their statistically increasing age. Although mortgages in the UK are granted in such a way that they are repaid before the planned retirement of the oldest applicant, dementia or Alzheimer’s disease can come much earlier and then, the LPA makes it very easy to handle all matters with the bank. This is important if only in the case of a remortgage.
How do I appoint an attorney in the UK?
Identification of a suitable person
The first step to establishing a power of attorney is, of course, to choose your attorney or several attorneys. Legally, this must be a person of legal age, who must be of legal capacity, so must be in the right mental state and not bankrupt if they are to manage your funds. Your attorney does not have to live in the UK or be a citizen, although this will be very helpful.
When choosing an attorney, consider:
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How well do I know this person?
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Is my attorney doing well in life and will he or she be the right person to manage my funds?
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Will my attorney act in my best interests?
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Will my attorney be comfortable in this role?
Usually, the role of attorney is filled by one of the relatives, a life partner, a close friend, a trusted lawyer or an already mature child.
Completion of documents
You can establish an LPA either electronically or on paper. Whatever your decision, it will be necessary for both you and your attorney to complete the forms. Correctly completing the application is very important - it will speed up the whole process of registering this legal relationship, which is absolutely essential.
It also seems that the electronic form is much more convenient - there is then no need for a witness and a ‘certificate provider’ who must validate that the declaration was not made under duress and in an informed manner.
LPA registration at the Office of the Public Guardian
The final step in setting up a power of attorney is to apply to the relevant office - in the UK, this is the Office of the Public Guardian. Filing costs £82 as standard, but there are situations where you will receive a discount or a full fee waiver. The Office of the Public Guardian has a statutory time limit of 20 weeks to process a case, but usually, it goes much quicker. Once a positive decision is received, the power of attorney takes effect.
What can an attorney do within the LPA?
As we have already mentioned, your attorney will really have a lot of decision-making power. However, the extent of the power will depend on the type of LPA granted.
Health and Welfare LPAs
A durable power of attorney for health matters has one key exclusion - you can only use it if you are unable to decide your own fate, for example if you are in a coma.
Your attorney will be influenced by:
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Life-sustaining treatment;
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Transferring you to a care home;
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Choice of treatment methods;
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Activities of daily living.
Property and Financial affairs LPAs
An LPA relating to financial matters can be used even moments after it has become final. Your attorney will have the right to:
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To see and use your bank account;
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Paying your bills and settling your liabilities;
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Collecting your benefits and pension on your behalf;
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Selling your home.
Summary
We hope that you never need an LPA and that you remain fit until the last day of your life. However, we believe that wise financial management is not just about saving - it is also about prudent risk assessment. It is up to you whether you decide to appoint your own attorney, but we strongly suggest you consider it.
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FAQ
Frequently asked questions
What is an LPA?
The LPA can address both health and financial issues According to the UK government’s official website, a Legal Power of Attorney (LPA, lasting power of attorney) is a document in which the grantor of the power of attorney (the donor) designates one or more people (attorneys) as having the authority to make decisions on his or her behalf.
Who can draw up an LPA in the UK?
Drawing up a power of attorney is neither difficult nor particularly restricted.
Why is it worth to establish an LPA?
The appointment of a LPA has basically only benefits, as long as the person you appoint is sufficiently competent and trusted.
How do I appoint an attorney in the UK?
Identification of a suitable person The first step to establishing a power of attorney is, of course, to choose your attorney or several attorneys.
What can an attorney do within the LPA?
As we have already mentioned, your attorney will really have a lot of decision making power.