What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that you can use to appoint someone you trust to handle your financial or welfare affairs, during your lifetime. The person authorised to do this is called the 'attorney' and the person making the LPA is called the 'donor'.

It is important to take care whom you choose as attorneys, given the control they will have over your affairs. A financial attorney cannot make decisions about anything other than financial matters. They should not control the donor’s behaviour or choice of where to live etc in any way. A Welfare Attorney, if appointed, would deal with those.  It is quite usual for a donor to appoint professional advisors as well as members of their own family.

An LPA can be created at any time. This does not mean that the donor immediately foregoes the right to carry on dealing with their own affairs. They can go on doing this for as long as they are able or wish to do so. The important thing is that the LPA is ready to use in the future, should the donor become mentally incapable or feel they can no longer cope with managing things themselves. It may be prudent to register the LPA immediately (at the Office of the Public Guardian) so it can be used in an emergency.  A mentally capable donor can cancel an LPA at any time.

Where an LPA exists and the attorneys believe the donor is no longer mentally capable, they must apply to have the LPA registered with the Office of the Public Guardian. This cannot be done without the donor and people they have nominated, if any, being notified. Either the donor or the nominees can object to the registration application. The LPA terminates on the death of the donor.

The advantages of taking this precaution are that you choose who looks after your finances, in the event that you are no longer able to do so yourself, without much further expense.

If you become unable to manage your own affairs and do not have an EPA or an LPA, a court order is needed to appoint someone not necessarily of your choosing to manage your affairs and this is a far more costly procedure. 

Since 1 October 2007, you are no longer be able to make an Enduring power of Attorney (EPA), but if you have signed one before then, it will continue to be legal until cancelled by you or until your death.  The Mental Capacity Act 2005 came into force on 1 October 2007 and now allows you to make a Lasting Power of Attorney. This is a much longer document than the EPA and contains more safeguards against misuse. It  also allows you to give treatment directions and appoint a welfare attorney. Please talk to us about making a new LPA.