Commonly asked questions about Lasting Power of Attorney (LPA)
What is a Power of Attorney?
There are two types of Power of Attorney; general and lasting.
General Power of Attorney:
This is where someone is given legal authority to act on your behalf in financial matters in your best interests e.g. when you are out of the country. It becomes invalid when you lose mental capacity to manage your own affairs. It also stops on your death.
Lasting Power of Attorney (LPA):
This is a Power of Attorney which continues after you might become mentally or physically incapable of handling your own affairs. It protects people who may not be able to make some decisions for themselves e.g. those with dementia, learning difficulties, mental health problems, stroke, head injuries, accident or illness.
Are there different types of LPA?
There are 2 types of LPA:
- A Personal Welfare LPA gives your Attorney the power to make decisions on your behalf about your personal welfare including whether to give or refuse medical treatment or where you live.
- A Property and Affairs LPA gives your Attorney the power to make decisions about your property and affairs including paying your bills, collecting your benefits or other income or selling your house. It does not allow your Attorney to make decisions about your personal welfare.
What happens if you DON'T have a Lasting Power Of Attorney?
A number of undesirable and frustrating things could well happen:
- A person quite unacceptable to you, could go to court and be appointed Deputy which is the same as someone being appointed by the court to have your Power of Attorney (incredibly, absolutely anyone can apply and these situations can unfortunately bring out not only the best but also the worst in people).
- A temporary vacuum can arise. It can take up to twelve months to achieve the appointment of a Deputy. Meanwhile nothing can be done with your property, bills, money etc. This therefore could cause a complete and total financial stalemate!
- It is expensive! It can cost over £2,000 per case to appoint a Deputy.
- An LPA must de done before you lose mental capacity. You have therefore got to plan ahead!
