What is a Lasting Power of Attorney (LPA) ?
Power of Attorney (POA) is a crucial legal instrument in the UK that allows an individual (the “donor”) to grant another person (the “attorney”) the authority to make decisions on their behalf.
Lasting Power of Attorney (LPA): Put simply an LPA gives power to person A to manage person B’s affairs, should person B lose the capacity to make decisions effectively. Person B puts the LPA in place ahead of time – before they lose capacity, in order to future-safe themself against what might happen when they get older/less able.
There are two types of LPA available.
Property and Financial Affairs LPA: This allows the attorney (the person nominated to act as the proxy) to make decisions about money and property, such as managing bank accounts, paying bills, or selling property.
Health and Welfare LPA: This covers decisions about personal health and welfare, including medical treatment and living arrangements, but can only be used when the donor lacks the capacity to make these decisions themselves.
Setting Up a Power of Attorney
Creating an LPA involves completing specific forms and registering them with the Office of the Public Guardian (OPG), the LPA can’t be used until it has been registered with the Office of Public Guardian. The forms require detailed information and must be signed by the donor, the attorney(s), and a witness. These forms are available online and are quite straightforward to fill in. If you’re unsure you can get a solicitor help you – but it’s a pricier way of doing things.
Having health and finance LPAs in place ensure that if you become unable to make decisions due to illness or incapacity, someone you trust can manage your affairs. This can prevent court intervention and ensure that decisions are made in your best interest, providing peace of mind for both you and your important people.
Key Things Covered in a Health and Welfare Lasting Power of Attorney (LPA)
A Health and Welfare Lasting Power of Attorney (LPA) is a legal document in the UK that allows you (the “donor”) to appoint one or more individuals (the “attorneys”) to make decisions about your health and personal welfare if you lose the mental capacity to make those decisions yourself. Here are the key aspects typically covered in a Health and Welfare LPA:
1. Personal and Medical Care Decisions
- Decisions about your daily routine, including washing, dressing, and eating.
- Decisions about your medical care, including treatments, surgeries, and medication.
- Decisions about where you should live, whether at home, in a care home, or in another residential facility.
2. Life-Sustaining Treatment
- Specific instructions regarding life-sustaining treatment, such as resuscitation (CPR), mechanical ventilation, and artificial nutrition and hydration.
- The attorney’s authority to consent to or refuse these treatments on your behalf.
3. Consent to Medical Treatment
- Authority for the attorney to give or refuse consent to medical treatments, including operations and other medical procedures.
- Decisions regarding participation in clinical trials or experimental treatments.
4. Healthcare Providers and Care Plans
- Decisions about changing healthcare providers, such as doctors, specialists, or dentists.
- Decisions about your care plan, including the type and level of care you receive.
5. Living Arrangements
- Decisions about moving into a care home or supported living accommodation.
- Authority to manage and organize your living arrangements to ensure your comfort and well-being.
6. Social and Leisure Activities
- Decisions about your participation in social, cultural, and leisure activities.
- Arrangements to ensure you maintain social connections and engage in meaningful activities.
7. Diet and Nutrition
- Decisions about your diet, including specific dietary needs and preferences.
- Authority to arrange for special diets if required due to medical conditions or personal beliefs.
8. Religious and Cultural Considerations
- Ensuring that your religious beliefs and cultural practices are respected in your care.
- Decisions about attending religious services, rituals, and the observance of cultural traditions.
9. End-of-Life Care
- Decisions about end-of-life care, including palliative care and hospice care.
- Ensuring your wishes for a dignified and comfortable end-of-life experience are followed.
10. Appointment of Attorneys
- Naming one or more attorneys who you trust to make decisions on your behalf.
- Option to appoint replacement attorneys if your primary choices are unable to act.
11. Instructions and Preferences
- Specific instructions and preferences for your attorneys to follow.
- Guidance on how you would like decisions to be made, reflecting your values and beliefs.
12. Conditions and Restrictions
- Any conditions or restrictions you wish to place on the authority of your attorneys.
- Clarifying any decisions you do not want your attorneys to make.
Conclusion
A Health and Welfare LPA is an essential document for ensuring that your health and personal care preferences are respected if you become unable to make decisions for yourself. By clearly outlining these key aspects, you can provide your attorneys with the guidance they need to act in your best interest, ensuring your well-being and dignity are maintained.
Key Things Covered in a Financial Lasting Power of Attorney (LPA)
A Financial Lasting Power of Attorney (LPA) is a legal document in the UK that allows you (the “donor”) to appoint one or more individuals (the “attorneys”) to manage your financial affairs if you lose mental capacity or if you wish them to act on your behalf even while you still have capacity. Here are the key aspects typically covered in a Financial LPA:
1. Bank Accounts and Savings
- Authority to manage your bank accounts, including current accounts, savings accounts, and ISAs.
- The ability to operate, close, and open new bank accounts.
2. Bills and Expenses
- Responsibility for paying your bills, including utilities, mortgage or rent, and other regular expenses.
- Authority to manage direct debits and standing orders.
3. Property and Investments
- Management of property, including buying, selling, and renting out real estate.
- Oversight of investments such as stocks, bonds, and investment funds.
4. Pensions and Benefits
- Authority to manage your pensions, including state pensions, private pensions, and occupational pensions.
- Ensuring that you receive all the benefits and allowances you are entitled to, such as disability benefits or housing benefits.
5. Tax Affairs
- Responsibility for managing your tax affairs, including filing tax returns, paying taxes, and dealing with HM Revenue and Customs (HMRC).
- Authority to claim any tax reliefs or allowances on your behalf.
6. Debts and Liabilities
- Handling of any debts or liabilities you may have, including loans, credit card bills, and other financial obligations.
- Authority to negotiate and settle debts.
7. Business Interests
- Management of any business interests, including operating, selling, or winding up a business.
- Authority to make financial decisions related to business operations and assets.
8. Gifts and Donations
- Authority to make gifts on your behalf, within certain legal limits.
- Ensuring that any gifts are in line with your previous giving habits and do not deplete your estate.
9. Insurance and Policies
- Management of your insurance policies, including health insurance, home insurance, and life insurance.
- Authority to make claims, renew policies, and manage premiums.
10. Legal Proceedings
- Authority to represent you in any legal proceedings related to your financial matters.
- Ensuring that your legal and financial rights are protected in court or other legal settings.
11. Record Keeping and Reporting
- Responsibility for keeping detailed records of all financial transactions made on your behalf.
- Providing regular reports to relevant parties, such as the Office of the Public Guardian or family members, if required.
12. Appointment of Attorneys
- Naming one or more attorneys who you trust to manage your financial affairs.
- Option to appoint replacement attorneys if your primary choices are unable to act.
13. Instructions and Preferences
- Specific instructions and preferences for your attorneys to follow regarding the management of your finances.
- Guidance on how you would like your financial matters to be handled, reflecting your values and priorities.
14. Conditions and Restrictions
- Any conditions or restrictions you wish to place on the authority of your attorneys.
- Clarifying any financial decisions you do not want your attorneys to make.
Conclusion
A Financial LPA ensures that your financial affairs are managed according to your wishes if you become unable to do so yourself. By covering these key aspects, you can provide clear instructions to your attorneys, helping them manage your finances effectively and in line with your preferences.
Martin Lewis explained: “Power of Attorney is more important than a Will. A Will decides what happens to your assets if you die. Power of Attorney [decides] what happens to your assets if you lose your faculties.”
Power of Attorney is a vital tool for managing your future needs and protecting your interests. By understanding the types and processes involved, you can make informed decisions and ensure that your affairs are in trusted hands, regardless of what the future holds. You can choose to just have one of the other – health or financial – or both.
If you haven’t set up an LPA – do it now! £82 per LPA https://www.gov.uk/power-of-attorney
— Marie Curie have some wonderful planning ahead resources on their website 
