When we think about estate planning, it’s easy to assume that it’s all about making a will. But there’s another equally crucial document that every adult in the UK should consider setting up: a Lasting Power of Attorney (LPA). As a financial and estate planning expert at Online Probate, I’ve seen firsthand how LPAs can provide peace of mind and protect your interests, no matter what life throws your way. However, very few people realise the importance of LPAs and there’s a common misconception that LPAs are only for people over a certain age.
For more than 20 years I have been stressing the importance of LPAs for anyone over the age of 18. And since our sole purpose is to help people make informed decisions about their finances and estate, I’m going to explain what an LPA is, how to set one up, and why it’s an essential part of planning for the future.
What is a Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney – often abbreviated to LPA – is a legal document that allows you (the “donor”) to appoint someone you trust (your “attorney”) to make decisions on your behalf if you’re unable to do so. Unlike an ordinary power of attorney, which is only valid while you have mental capacity, an LPA can be used even if you lose capacity.
You might think LPAs are only for older people or those with health issues, but they’re vital for anyone over the age of 18. Accidents and illnesses can strike unexpectedly, and without an LPA, your loved ones could face long delays and costly legal battles to make decisions for you.
It’s not nice to think about but consider what would happen if you were involved in an accident that meant you were in hospital for several months. Without an LPA in place your partner or next of kin wouldn’t be able to pay your bills, contact your bank, or discuss treatment with your doctor.
Why You Should Set Up an LPA
Contrary to popular belief, your next of kin doesn’t automatically have the right to make decisions on your behalf if you’re incapacitated. Without an LPA:
- Your family may need to apply to the Court of Protection to become your deputy, a process that can take months and cost thousands of pounds.
- Important decisions about your care or finances could be delayed, causing unnecessary stress for your loved ones.
The Office of the Public Guardian (OPG) reports that applications for LPAs are increasing yearly, with over 800,000 registered LPAs in 2022. This increased to 1,161,958 in 2023 and reflects the growing awareness of their importance.
Types of LPA
There are two types of LPA in England and Wales:
1. Health and Welfare LPA
A Health and Welfare LPA gives someone the power to make decisions about your health and care if you become unable to make these decisions for yourself. This type covers decisions about:
- Your medical care (treatments or surgeries)
- Where you live (moving into a care home)
- Your daily routine (diet or activities)
- End-of-life care and life-sustaining treatment (if specified)
A health and welfare LPA can only be used if you lose the capacity to make decisions yourself.
2. Property and Financial Affairs LPA
A Property and Financial Affairs LPA gives someone the legal authority to make decisions about your money and property. This type covers decisions about:
- Managing your bank accounts
- Paying bills and collecting pensions and benefits
- Selling or renting property
Unlike a health and welfare LPA, this can be used as soon as it’s registered while the donor still has mental capacity, but only with your permission and the LPA says you can.
We often see people setting up Lasting Power Of Attorney for both health and finance or you can choose to appoint someone to take care of one aspect.
How to Appoint Attorneys
Choosing your attorney or attorneys is one of the most critical decisions in setting up an LPA. Your attorney could be a family member, a friend, or even a professional. They must be over 18 and willing to take on the role.
I often have clients who find it difficult to choose between children. But don’t worry you can appoint more than one attorney. By specifying that they must act jointly for major decisions it ensures a balanced approach to decision making.
You can appoint multiple attorneys and decide whether they’ll act:
- Jointly: They must agree on all decisions.
- Jointly and severally: They can act independently or together.
Attorneys Responsibilities
To help you make a decision about the best people to appoint as your attorney, we’ve listed some key personal responsibilities and attributes that they will need.
Health and Welfare Attorneys must be able to:
- Always act in the donor’s best interests
- Understand the donor’s preferences and values
- You can’t refuse life-sustaining treatment unless the LPA explicitly allows it
Property and Financial Affairs Attorneys
- Must keep detailed records of all transactions and be organised
- Avoid conflicts of interest (e.g. benefiting personally from decisions)
- Seek professional advice if unsure about major decisions (be able to ask and get help)
How to Set Up and Register a Lasting Power of Attorney
Setting up an LPA is relatively straight-forward and involves the following steps:
- Complete the Forms
- You’ll need to fill out the LPA forms available on the UK Government website. Each type of LPA requires a separate form.
- Choose a Certificate Provider
- This person ensures you understand the LPA and aren’t being coerced. They could be a professional (e.g a GP) or someone who’s known you for at least two years.
- Sign and Witness the Forms
- All parties, including attorneys, must sign the forms with witnesses present.
- Submit the Forms to the OPG
- Send the completed forms to the OPG with the £82 registration fee per LPA. (Fee reductions are available for those on low incomes.)
- Wait for Registration
- Registration can take up to 20 weeks, so it’s best to apply early.
Even if you’re considering setting up an LPA for yourself, it’s always best to get professional advice from someone like Online Probate. As an FCA-regulated financial advisor, I have many years of experience of consulting on LPAs. Through experience and knowledge I can really help people avoid potentially costly or distressing mistakes.
The Benefits of Using a Professional Estate Planner
Setting up an LPA is fairly straight-forward. However if you make a mistake on the form Office of the Public Guardian may still charge the £82 fee, so it’s best using a professional that processes these documents every day. Take a quick look at the main benefits of using a LPA professional.
1. Avoiding Errors That Could Void the LPA
LPAs are legally binding documents, and even minor mistakes—such as incomplete sections, missing signatures, or incorrect wording—can lead to rejection by the Office of the Public Guardian (OPG). Professionals have the experience to ensure every detail is completed accurately the first time, saving time and stress.
2. Tailoring the LPA to Your Needs
Professionals understand the nuances of estate planning and can help tailor the LPA to your specific circumstances. For example, they can guide you in drafting clear instructions for your attorneys, outlining your wishes in complex areas like healthcare or property management.
3. Expert Guidance on Appointing Attorneys
Choosing the right attorneys is crucial, and professionals can provide valuable advice on:
- The number of attorneys to appoint.
- How they should act (jointly, jointly and severally).
- Conflict resolution strategies.
4. Clarity on Restrictions and Preferences
A professional can help you draft instructions and preferences that avoid ambiguity. Without proper wording, your wishes could be misinterpreted, leading to disputes or decisions not aligning with your intentions.
5. Compliance with Legal and Regulatory Requirements
Professionals are well-versed in UK law and ensure your LPA adheres to all legal requirements. This is particularly useful when dealing with complex family dynamics or assets.
6. Support with Registration and Communication
Professionals handle the submission of the LPA to the OPG, ensuring all paperwork is in order. More importantly, they can also act as intermediaries if queries or issues arise during the registration process.
At Online Probate we offer LPAs as part of writing your will. That way, paperwork, executors and LPAs are all contacted and followed up with by us for added peace of mind.
Can You Cancel an LPA?
If your circumstances change, you can cancel an LPA at any time, provided you still have mental capacity. This involves completing a Deed of Revocation and notifying the OPG.
If you have an older Enduring Power of Attorney (EPA), it remains valid but only covers property and financial affairs. You might want to replace it with a broader LPA.
An LPA may also end if your attorney:
- loses mental capacity (can not longer make decisions)
- your LPA was a spouse or civil partner and you become divorced or separated
- becomes bankrupt
- is removed by the Court of Protection
- or they die
Take Control Of Your Future: Set Up A Lasting Power Of Attorney
Setting up an LPA isn’t just about protecting yourself; it’s about giving your loved ones clarity and peace of mind. At Online Probate, we make it easy to navigate the process with competitively priced, no-fuss services, and you can organise your LPAs and Wills online with us. Together, let’s ensure you’re prepared for whatever life throws your way.
Remember, LPAs aren’t just for the elderly or vulnerable—they’re a smart move for everyone. Don’t wait for an emergency to realise their value. Act now to safeguard your future.
