Lasting Powers of Attorney: one year anniversary
LPAs were introduced on 1 October 2007. On their one-year anniversary, this article outlines the basics.
The benefits of an LPA
Having a signed and registered LPA could be a huge help if, for example, you grow old and find it harder to carry on as you did before, you are in a serious accident or if you are leaving the country for a few months or more.
Your Attorneys will have the ability in these situations to deal with your affairs and ensure things carry on as they did before. They could (for example) draw cheques from your bank account, manage investments and sell your property.
Clearly, an LPA is a powerful tool. Your Attorneys are legally obliged to act in your best interests at all times, and if you are capable of making a particular decision on your own then your Attorneys will be unable to do so for you.
Who should make an LPA?
Gentleman in a park
Anyone may find themselves seriously injured or comatose following an accident, but putting an LPA in place solely for this purpose is rarely worth the expense (perhaps racing drivers would disagree).
Most people who create LPAs are getting older and can foresee a time when they will be unable to deal with their own affairs, or when they would simply appreciate someone else’s help.
How to make an LPA
LPAs are made by completing the required forms. The main form is long and somewhat complicated and there are other forms to help with the registration. There are many hurdles on the forms including sections which are often inaccurately completed. There are also plenty of legal formalities, such as a certificate provider to vouch for the Donor’s state of mind. If a form is incorrect in any way it may not be valid and the Donor may have to pay the registration fee twice. Therefore, we always advise instructing a solicitor (well we would, wouldn’t we? But we genuinely believe it is a good idea!).
Lasting Power of Attorney (section of form)
There are two types of LPA and each comes with its own form. The first deals with “property and affairs”, the second deals with “personal welfare”. A Donor can put in place one or the other, or both.
Costs
The body that deals with LPAs is the Office of the Public Guardian. Its fees are £150 per LPA.
Because of the technical nature of the forms and advice, solicitors will usually charge a few hundred pounds.
Changes to the law one year ago
On 1 October 2007 the majority of the Mental Capacity Act 2005 came into force. Prior to that date, it had been possible to create an “Enduring Power of Attorney”. This is no longer an option, but any Enduring Powers that were implemented before 1 October 2007 remain valid.
Other interesting points
- The Office of the Public Guardian is having a tricky time at the moment; it is understaffed and overstretched. There is considerable backlog and LPA registration applications typically take many weeks (usually around 3-4 months).
- The new regime has been criticised for its lengthy forms and expensive registration process, but the new “personal welfare” LPAs offer a welcome safeguard for peoples’ medical and residential care.
Your comments, questions and experiences are welcome below.
