Gaye Illsley: Lasting Powers of Attorney

Gaye Illsley of LPA Made Simple joined us online for today’s meeting.

She told us that Lasting Powers of Attorney (“LPAs”) were introduced in 2005, replacing the previous Enduring Powers of Attorney. There are two types, one authorising the appointed attorney to handle the donor’s financial and property affairs on their behalf and the other authorising the attorney to deal with social and medical matters. The LPAs are not triggered unless the donor loses the mental capacity to deal with his or her own affairs.

Many people think it is sufficient if they make a will. However, this only comes into effect when they die. If they lose mental capacity during their lifetimes their relatives can find it difficult to look after their affairs for them unless they have given an LPA. For example, no one will be able to access their bank account for them and a even a joint account will be frozen once the bank discovers one of the parties has lost mental capacity. This can cause great problems if the household’s main income is being paid into that account. An LPA gives the attorney the power to take control with a minimum of fuss.

A Property and Financial LPA authorises the attorney to handle all the donor’s financial, property and investment affairs. Among other things, this could facilitate the sale of the donor’s residence if it is no longer suitable or funds are needed to pay for nursing home care.

A Health and Welfare LPA authorises the attorney to make decisions on such things as the donor’s medical treatment and social activities. Obviously it helps if the donor, when granting the LPA, has indicated his or her preferences.

It is essential that the donor only appoints trusted people who are close to her or him as attorneys under an LPA. It is inadvisable to appoint joint attorneys, as that will require them to act together which will become difficult if one of them has died or become incapacitated themselves.

It costs £82 per document to register LPAs. Doing it yourself can save on professional fees but professional advice is highly desirable because the process is complex, as each LPA runs to 40 pages and there are 56 pages of accompanying notes.