Securing the Future: Understanding and Setting Up a Lasting Power of Attorney

When planning for the future, we often focus on saving, investments, or property. Yet, one of the most vital components of a comprehensive life plan is often overlooked: creating a Lasting Power of Attorney (LPA). This legal tool ensures your affairs—financial, medical, or otherwise—are managed by someone you trust should you lose the ability to make decisions yourself. In this blog, we’ll explore what an LPA is, why it’s essential, and how to set one up, with guidance tailored to your needs.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document that allows you (the “donor”) to appoint one or more individuals (the “attorneys”) to make decisions on your behalf if you are unable to do so. There are two main types of LPAs:

1. Property and Financial Affairs LPA:
   This covers decisions about your money, property, and finances. For example, paying bills, managing bank accounts, or selling property if needed.
2. Health and Welfare LPA:
   This covers decisions about your health and personal care, such as medical treatments, living arrangements, and end-of-life care.

Both types of LPAs give your attorneys the authority to act in your best interests and according to your wishes.

Why is a Lasting Power of Attorney Important?

Life is unpredictable, and circumstances like accidents, illnesses, or age-related conditions can sometimes make it impossible for someone to manage their own affairs. Without an LPA in place, your loved ones may need to go through a lengthy and costly legal process to gain control over your finances or healthcare decisions.

Here’s why setting up an LPA is crucial:

• Peace of Mind: Knowing that trusted individuals will handle your affairs gives you and your family peace of mind.
• Timely Decision-Making: An LPA ensures that important decisions are made promptly without court delays.
• Avoiding Family Conflicts: Clear legal instructions prevent disputes over who should make decisions.
• Customizable Control: You can specify what powers your attorneys have, ensuring your preferences are respected.

Who Can Be an Attorney?

Choosing the right attorney is a significant decision. You can appoint anyone over the age of 18, such as:

• A family member or close friend you trust.
• A professional, such as a solicitor.
• More than one person, to share responsibilities.

When selecting your attorneys, consider their ability to manage finances, their understanding of your health preferences, and their willingness to take on the role.

How to Set Up a Lasting Power of Attorney

Setting up an LPA in the UK involves several steps:

1. Choose Your Attorneys

Decide who you want to appoint and discuss your intentions with them to ensure they are willing and capable of taking on the role.

2. Fill Out the LPA Forms

Download the relevant LPA forms from the Office of the Public Guardian (OPG) website or request them by post. These forms are split into sections for Property and Financial Affairs and Health and Welfare.

3. Nominate a Certificate Provider

A certificate provider is someone who ensures you understand the implications of the LPA and are not under duress to create it. They could be a professional, such as a GP or solicitor, or someone who has known you for over two years.

4. Register the LPA

Once the forms are completed and signed, they must be sent to the OPG to be registered. The process takes about 8–10 weeks and includes a registration fee.

5. Keep Copies for Reference

Once registered, ensure you and your attorneys have copies of the LPA for future use.

When Does an LPA Take Effect?

An LPA for Property and Financial Affairs can take effect either immediately after registration or only if you lose capacity, depending on your preference. The Health and Welfare LPA only takes effect if you cannot make decisions for yourself.

Common Misconceptions About LPAs

• “I don’t need one yet; I’m too young.”
  LPAs aren’t just for the elderly. Anyone can face unexpected situations requiring a trusted decision-maker.
• “My family will automatically take care of things.”
  Without legal authority, even close family members may be unable to access your bank accounts or make healthcare decisions.
• “It’s too expensive.”
  While there are fees, the cost of setting up an LPA is much less than the legal process of appointing a deputy later.

Why Professional Advice Matters

Although the LPA forms are straightforward, mistakes in filling them out can lead to delays or rejection. Seeking guidance from professionals ensures the process is smooth and your documents are valid.

Final Thoughts

A Lasting Power of Attorney is an act of preparation and care for yourself and your loved ones. It allows you to retain control over your future by ensuring your affairs are managed according to your wishes. Whether it’s safeguarding your finances or ensuring your health preferences are respected, an LPA is a critical part of planning for the unexpected.

At Burbage Finance Ltd, we specialize in helping individuals and families navigate the complexities of estate planning, including setting up a Lasting Power of Attorney. Our experienced team can guide you through the process, ensuring your future is in trusted hands. Contact us today to take the first step toward securing peace of mind.