How to Set Up a Lasting Power of Attorney

Planning for the future is essential, and one of the most responsible steps you can take is setting up a Lasting Power of Attorney (LPA). An LPA is a legal document that allows you to appoint trusted individuals to make decisions on your behalf if you’re unable to do so. Whilst no one likes to imagine a time when they might lose capacity to make their own decisions, having an LPA in place ensures that your affairs are managed according to your wishes.

What Is a Lasting Power of Attorney?

An LPA is a legal document created to give authority to someone or several people (known as “attorneys”) to act on your behalf in case you lose capacity and are unable to manage your financial affairs or health. There are two types of LPAs that you can choose to set up just one or both, depending on your needs:

• Health & Welfare LPA – Covers decisions about your personal care, medical treatments, living arrangements and life sustaining treatment.
• Property & Financial Affairs LPA – Covers decisions about your finances, such as paying bills, managing bank accounts, or selling your home should it be required.

Why Should You Set Up an LPA?

LPAs are intended to enhance your control rather than restrict it or transfer it to others. With the increasing cases of dementia in the UK, along with other serious illnesses, LPAs allow you to plan and appoint trusted individuals to make decisions on your behalf.

By having an LPA in place, you can prevent potential disputes among your family over who should make decisions for you and when actions should be taken. Differing opinions can create tension during an already challenging time. An LPA clearly outlines your chosen attorneys and your preferences, providing clear guidance.

Without an LPA, your loved ones might be excluded from making important decisions on your behalf. They may even have to apply to the Court of Protection for a Deputyship Order to be able to make decisions on your behalf. This means they would need to go through a lengthy and expensive court process to gain the right to make decisions for you if you lose capacity.

How to Set Up an LPA

Book a Consultation with a Private Client Solicitor

The first step is to contact a solicitor who specialises in Private Client law. During your initial consultation, they’ll explain the process, discuss your needs, and help you decide which type of LPA you need.

Choose Your Attorney(s)

Your attorney should be someone you trust completely. This could be a family member, close friend, or a professional such as a solicitor. You can appoint more than one attorney, and you’ll need to decide if they will act:

• Jointly – They must make decisions together.
• Jointly and Severally – They can act independently or together.

Define Your Instructions and Preferences

Working with a solicitor allows you to customise your LPA in a clear and legally enforceable way. You can outline specific instructions or preferences for your attorney, such as:

• Restrictions on selling property.
• Preferences on medical treatment.
• Guidance on investments or distributing funds.

Engage a Certificate Provider

You will need a certificate provider to confirm that you understand the document and aren’t under pressure to create it. Your solicitor can often serve as the certificate provider, streamlining the process.

Draft and Review the LPA Documents

Once all the documents are finalised, your solicitor will draft the LPA forms on your behalf. They will review these with you to ensure the information is accurate and reflects your wishes. This stage includes careful attention to any optional sections, such as preferences or instructions, which are often overlooked in DIY applications.

Sign and Witness the Documents

Your solicitor will oversee the signing process to ensure the correct order is followed, as any errors in the signing order can invalidate the LPA:

• You (the Donor) signs first, in the presence of a witness which can usually be your Solicitor.
• The certificate provider signs to confirm your capacity.
• Your attorneys sign to accept their role, in the presence of a witness.

Register the LPA with the Office of the Public Guardian (OPG)

Your LPA needs to be registered with the OPG to be valid. Your solicitor will handle this step, submitting the forms and paying the registration fee. The registration process can take up to 20 weeks, and your solicitor will keep you updated on the progress.

Receive the Registered LPA

Once the LPA is registered, the OPG will return the official document. your solicitor will provide advice on how to store it safely and ensure relevant parties have access when needed.

Setting up a Lasting Power of Attorney with the help of a Private Client solicitor ensures your wishes are clearly recorded and legally binding. While it’s an additional cost compared to the DIY approach, the expertise and peace of mind you gain are invaluable.

If you’re considering setting up an LPA, contact Aston Bond’s experienced Private Client team on 01753 486 777. By planning, you’ll be protecting yourself and making life easier for your loved ones if the unexpected happens.

For your information, we prepare Lasting Powers of Attorney on a fixed fee basis. Please see below for our costs:

• Individual Lasting Power of Attorney X 1 (Finance & Property OR Health & Welfare) – £500.00 + VAT
• Individual Lasting Power of Attorney X 2 (Finance & Property AND Health & Welfare) – £600.00 + VAT
• Couples Lasting Power of Attorney X 1 (Finance & Property OR Health & Welfare) – £600.00 + VAT
• Couples Lasting Power of Attorney X 2 (Finance & Property AND Health & Welfare) – £750.00 + VAT

There is also a further registration fee of £82.00 per application for registering the documents with the government body that manages LPAs The Office of the Public Guardian. The documents must be registered before they can be used.

There is also an additional one-off charge for fixed fee Lasting Power of Attorney files to cover our case management, archiving, and administration fees. This is £45.00 + VAT. There are no ongoing annual charges for these services, and we also offer to store your original Lasting Power of Attorney documents without any additional charge!