Lasting Power of Attorney Explained: What It Is and Why Not to Wait

Most of us assume that if we were ever unable to look after our own affairs, our husband, wife or children would simply step in. In reality that is not how it works. Without a lasting power of attorney, even close family have no automatic right to manage your bank accounts or make decisions about your care.

What is a lasting power of attorney?

A lasting power of attorney (LPA) is a legal document in which you — the “donor” — appoint one or more people, called attorneys, to make decisions on your behalf if you are unable to, or simply no longer want to. There are two types, and you can make one or both:

• Property and financial affairs. Covers things like paying bills, managing bank accounts, collecting your pension and selling or renting out your home. If you wish, it can be used while you still have capacity, with your permission — useful if you are in hospital or struggling with mobility.
• Health and welfare. Covers decisions about your day-to-day care, medical treatment and where you live. It can only be used once you are no longer able to make those decisions yourself, and you can choose whether your attorneys may make decisions about life-sustaining treatment.

Why make one while you are well?

You can only make an LPA while you still have the mental capacity to understand what you are signing. After that moment, the option has gone. If you lose capacity without one in place, your family may have to apply to the Court of Protection to be appointed as your deputy. That process is slower and more expensive, and the court keeps a close eye on the deputy’s decisions afterwards — at a time when your family are already under strain.

Good to know: an ordinary power of attorney stops being valid if you lose mental capacity, which is exactly when most people need it. A lasting power of attorney is designed to keep working. Older Enduring Powers of Attorney made before 1 October 2007 remain valid, but LPAs are what you can make today.

Choosing your attorneys

This is the most important decision in the whole process. Think about:

• Trust and reliability. Will they act in your best interests, and be comfortable handling money and difficult conversations?
• Practicalities. Do they live close enough, and will they have the time? Are they likely to be in good health themselves when the time comes?
• How they act together. With more than one attorney you can ask them to decide everything jointly, or to be able to act separately as well as together. Each choice has pros and cons.
• Replacements. You can name replacement attorneys in case one cannot act.
• Your wishes. You can add preferences and instructions so your attorneys know how you would want decisions made.

How the process works

1. Decide which type (or both) you need and who your attorneys will be.
2. Complete the forms. They must be filled in carefully — the Office of the Public Guardian can reject an application with mistakes, which means starting again.
3. Add a certificate provider. This is an independent person who confirms that you understand what you are doing and are not being pressured.
4. Sign in the right order, with witnesses, as the forms require.
5. Register it with the Office of the Public Guardian. An LPA cannot be used until it is registered, and registration can take several weeks — another reason not to leave it until the last minute.

The paperwork can feel daunting, and it asks you to think about situations that are hard to imagine. Our team guides clients through this sensitive process step by step. You can read more about our power of attorney service.

Want to put an LPA in place? Book a free, no-obligation consultation and we will explain the options in plain language. Evening and weekend appointments are available.

This article is general information for readers in England and Wales. It is not legal, tax or financial advice, and the rules can change — please talk to an adviser about your own circumstances.