An LPA is a document which allows somebody (the Attorney) to make decisions and act on behalf of another (the Donor).
An LPA requires registration at the Office of the Public Guardian before it can be used and will then be useable, even if the Donor subsequently loses mental capacity.
All LPAs will cease on the death of the Donor, with authority to act then shifting to the Executors of the Will.
What types of LPA are there?
An LPA can be one of two different types;
1. LPA for Property & Finance, &
2. LPA for Health & Welfare
Do I need one?
An LPA is a bit like having house insurance. You have it in place ‘just in case’, but you hope that you never need it. Many people retain full mental capacity throughout their lives and never require assistance from family or friends to manage their affairs.
However, others are not so fortunate and may suffer from mental or physical incapacity, particularly in their later years, leaving them unable to cope without assistance.
An LPA is made when the Donor is fit and well and can come into effect immediately upon registration (in the case of Property & Finance LPAs only), or only if the Donor loses capacity in the future.
If somebody loses mental capacity and they do not have an LPA then a friend, family member or professional will be required to apply to the Court of Protection to be appointed as Deputy. A Deputy operates similarly to an Attorney, but with additional supervision and costs involved.
Who has one?
There is a perception that only those with a great deal of money need make an LPA, but this is not the case. If a person becomes unable to deal with their own finances, having an LPA in place can make even simple tasks, such as arranging to pay utility bills, far simpler. There is also a presumption that an LPA is only needed for the elderly, but one can be put in place at any time once the Donor is over 18.
More and more people are now making provision for themselves and their loved ones in the event that they should become incapacitated in the future. Additionally, the fees to register an LPA at the Office of the Public Guardian were reduced from £110.00 to just £82.00 as of 1 April 2017. There really has never been a better time to plan for the future.
If you would like to discuss making an LPA, or if you have any queries about your duties as an Attorney under someone else’s LPA, call a member of Hartlaw’s Private Client team on 01937 547000.
