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In the latest episode of the Lawdit Solicitors Podcast, Mark Reed, Ellis, and Sam delve into the critical subject of Lasting Power of Attorney (LPA). As the complexities of life unfold, having an LPA can be an essential safeguard. This article summarises the key points discussed in the podcast, providing you with a comprehensive understanding of LPAs, their importance, and how to get one in place.
What is a Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney (LPA) is a legal document that allows you (the donor) to appoint one or more people (attorneys) to help you make decisions or to make decisions on your behalf should you lose mental capacity. There are two types of LPAs:
- Health and Welfare LPA: Covers decisions about your health and personal welfare.
- Property and Finance LPA: Covers decisions about your financial affairs and property.
Why You Need an LPA
Mark Reed shared a personal story highlighting the sudden need for an LPA when unexpected health issues arise. The primary reason for having an LPA is to ensure that your affairs are managed by someone you trust if you become unable to do so yourself. This can prevent stressful and costly court applications for emergency powers.
Types of LPA
- Health and Welfare LPA: This type allows your attorney to make decisions about your daily routine, medical care, moving into a care home, and life-sustaining treatment. It can only be used when you are unable to make your own decisions.
- Property and Finance LPA: This type allows your attorney to manage your bank accounts, pay bills, collect benefits or a pension, and sell your home. It can be used as soon as it’s registered, with your permission.
The Process of Setting Up an LPA
Setting up an LPA involves several key steps:
- Choose Your Attorneys: Decide who will act as your attorney. This should be someone you trust implicitly to act in your best interests.
- Complete the Forms: Fill in the necessary LPA forms. This can be done online or on paper.
- Get It Signed: The LPA must be signed by you, your attorney(s), and a certificate provider who confirms that you understand what the LPA means and that you are not under any pressure to sign it.
- Register the LPA: Submit the completed forms to the Office of the Public Guardian (OPG) for registration. There is a fee of £82 per LPA for registration.
Why Professional Help is Beneficial
While it is possible to draft your own LPA, seeking professional help from solicitors ensures that the document is legally sound and that all potential issues are addressed. Solicitors can:
- Provide Comprehensive Guidance: Explain the implications and responsibilities involved.
- Ensure Accuracy: Make sure the LPA is completed and signed correctly.
- Avoid Common Pitfalls: Help you avoid mistakes that could invalidate the LPA.
Consequences of Not Having an LPA
Without an LPA, if you lose mental capacity, your family would need to apply to the Court of Protection to get the authority to manage your affairs. This can be a lengthy, expensive, and stressful process. Having an LPA in place avoids this scenario, ensuring your wishes are followed and reducing the burden on your loved ones.
Costs Involved
The current cost to register each LPA with the Office of the Public Guardian is £82. Therefore, if you decide to set up both a Health and Welfare LPA and a Property and Finance LPA, the total cost would be £164, plus any legal fees for drafting and advising on the LPA.
Conclusion
Creating a Lasting Power of Attorney is a proactive step to ensure that your personal and financial affairs are managed according to your wishes if you are unable to make decisions yourself. It provides peace of mind for both you and your loved ones, knowing that a trusted person will handle your affairs.
For expert assistance in drafting and registering your Lasting Power of Attorney, contact Lawdit Solicitors at www.lawdit.co.uk, email us at info@lawdit.co.uk, or call us on 02380 235 979.
