We all come across a term called Lasting Power of Attorney these days. In this article, we will try to give you all the information that you must know about Lasting Power of Attorney.
What is Lasting Power of Attorney
Lasting Power of Attorney is commonly known as LPA. It allows the person to choose family members, or friends or anyone who will manage their affairs officially when you when you become too old do not have the mental capacity.
Types of an LPA
There are 2 types of LPA’s. LPA for Health & Social Welfare and Financial & Property Affairs.
Lasting Power of Attorney for Health & Welfare
This type of LPA will allow your attorney(s) to make decisions related health and general welfare.
Your normal day to day matters. e.g washing, eating, dressing etc.
- Your medical care
- Moving you into a care home
- Make the decision to Life-Sustaining Treatment
Please note, this type of LPA is for future when you do not have the mental capacity. It means, your attorney(s) will not have the authority to make decisions while you have the mental capacity.
Lasting Power of Attorney for Property & Financial Affairs
In this LPA, your attorney(s) can make decisions regarding property or financial matters. e.g
- Sell House or Flat
- Manage your Bank Account
- Collect benefits on your behalf etc
- Paying your bills. etc
In this type of an LPA, you can also choose to authorise your attorney(s) to make decisions while you have the mental capacity or authorise them only to make decisions when you have lost the mental capacity.
What is Lasting Power of Attorney Cost?
The government fee to register an LPA is GBP 82 per LPA. When you apply for both types of LPA, the registration cost can be GBP 164. In some cases, individuals may receive a 50% discount or complete exemption in the LPA depending on their Financial Circumstances. e.g. A person whose annual income is less than GBP 12000 is eligible to receive a 50% discount provided he can provide documentary proofs of income.
Is there any Other Cost Involved?
Do you need a Lawyer to get Power of Attorney?
You may apply directly to create your lasting power of attorney application. Under such circumstances, you do not have to pay other than the registration fee, if applicable.
For some people, it is fairly a complex process and may use help from a solicitor/lawyer or use an Online Companies to help them draft their application. The cost of using solicitor may start from around GBP 400 to GBP 1000 and in some cases, even more. Whereas companies offering online services such as LPA Services are much cheaper. These companies charge roughly from around GBP 100 to GBP 500. Please do check with those companies for latest prices before using their services.
How long does it take to make Lasting Power of Attorney?
Once you complete the Lasting Power of Attorney Forms, you must send it to the government body called Office of the Public Guardian, also known as OPG for registration. It roughly takes around 8 to 10 weeks for OPG to register your LPA and send you back the registered document.
When you use a third-party service in drafting your application, you should consider their processing time in addition to OPG registration time.
What is the difference between Enduring Power of Attorney and Lasting Power of Attorney?
Enduring Power of Attorney
From October 2007, the government replaced Enduring Power of Attorney with Lasting Power of Attorney. Enduring Power of Attorney was only valid for Financial & Property Affairs. Please note, Enduring Power of Attorney made and registered with Office of the Public Guardian before October 2007 is still Valid and you can continue using it.
Now to look after your Health & Social Welfare Affairs, you may only create a Lasting Power of Attorney for Health & Social Welfare. In nutshell, Lasting Power of Attorney is the new name of Enduring Power of Attorney.
What if I do not have an LPA?
You can only create an LPA when you have the mental capacity. Once you lose the mental capacity, then you cannot create an LPA. In such case, your family members, or friends must apply to the COURT OF PROTECTION to get the legal authority to manage your affairs. This process takes time and more expensive than creating the LPA.
What is Mental Capacity?
A person should have mental capacity in order to make his lasting power of attorney. In simple, mental capacity means, ability to make a decision regarding a certain matter in hand at a given time.
In order to protect people, the government has created an act, called as Mental Capacity Act 2005. As per law, everyone is deemed to have the mental capacity unless otherwise. You may have the mental capacity to make some decisions and unable to make other.
People Involved to create a Lasting Power of Attorney
You need to have
A donor is a person who gives the authority to makes decisions on his behalf. In simple words, a donor is a person for whom you are creating the LPA.
This is the person or person that donor give authority to make decisions on his behalf. Anyone who is over 18 years old can be an attorney. Only a bankrupt person cannot be an attorney in Financial & Property LPA. The donor can choose any number of people as the attorney. Most people choose their close family members or friends who they can trust as the attorney.
It is optional to have replacement attorney(s). These people will only replace the main attorney when the main attorney can no longer act as the attorney. Replacement Attorney(s) cannot temporarily replace the main attorney(s).
Certificate Provider (CP):
It is an independent person who verifies that Donor has the mental capacity to make the LPA. A Certificate Provider can be a Professional, such as a doctor, a nurse, solicitor or a healthcare professional. A Non-Professional can also be a Certificate Provider. In this situation, the CP should not be related to the Donor or any of the Attorney in the LPA.
It is optional to have Notified Person(s). These are those people who you want to inform that you are creating and registering an LPA. In future when your attorney (s) act for you, these people may not suspect them. Notified Person(s) does not have anything to do with decision making. NP(s) can object to OPG when you register the LPA stating why it should not be registered.
Have more questions?
If you have more questions, you can visit LPA Services.
Note: This is a NON commercial promotional article