Lasting Power of Attorney
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With you every step of the way
Why Make an LPA?
The Lasting Power of Attorney (LPA) in England & Wales was created under the Mental Capacity Act (2005) and replaced the former Enduring Power of Attorney (EPA).
There are two types of LPA.
A 'Property & Financial Affairs' LPA gives your trusted person(s) also known as your 'attorney(s)' authority to deal with buying and selling your property, your bills, bank accounts and investments.
A 'Health & Welfare' LPA covers decisions about your health and care and where you are to live if you can't make these decisions for yourself due to capacity loss. Current legislation allows the local authority to assume responsibility for your welfare should you lose capacity without having a Health & Welfare LPA in place.
If you lose mental capacity without having LPA's in place, it will be necessary for your family to apply to the Court of Protection to have a 'deputy' appointed to deal with everyday matters. A 'deputy' is typically a loved one. This is a slow and very expensive process with costs running into the thousands. If you have to use a specialist solicitor, it could cost even more.
If you have Lasting Powers of Attorney in place, this will not be necessary.
How Does It Work?
The following example shows what would happen if you suffered an unexpected illness or accident, resulting in a loss of mental capacity.
Without an LPA
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Sole bank accounts will be frozen
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Joint bank accounts may be frozen
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Bills can’t be paid from your money
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Investment decisions can’t be made (any previous authority given to make investment decisions is cancelled)
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Property can’t be sold, meaning a co-habiting partner can’t move house if they wanted to
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Your next of kin doesn't have the legal right to make decisions about medical treatment
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Your next of kin doesn't have the legal right to make personal choices for you
If you don’t plan ahead and you suffer an accident or illness which causes you to lose mental capacity, your next of kin can only get the legal authority to act on your behalf through a Court Order. This is a long, costly and intrusive process.
With an LPA
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The bank recognises the chosen
representative’s legal authority and no
accounts are frozen
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Investment decisions can be made by
your representatives
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Bills can be paid as normal
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Property can be sold if needed
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The representative has the legal right to
make decisions about your medical
treatment
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The representative can make personal
choices for you
By planning ahead, you can choose who should have
legal authority to make decisions on your behalf if
you can no longer do so. An LPA costs far less than a
Court Order and the people you choose can step in
as soon as they’re needed.
