What is a lasting power of attorney and how do I set one up?
“My health hasn’t been great recently, and my daughter keeps telling me to set up a lasting power of attorney. However I’m not sure what that actually means, and I definitely don’t want to give up control of my life yet. Could you give me a bit of basic information about it?”
Peter, Norwich
Thanks for your question, Peter. You've raised one of the most important issues we face as we age: who will make decisions on our behalf if we lose our mental capacity?
This is an uncomfortable subject, and no-one likes to imagine a situation where they're reliant on others to make decisions. However, if you’re lucky enough to live to a ripe old age, there's a real chance you will need help in the future.
Without appropriate arrangements in place, your family may need to apply for a Court of Protection deputyship to assist with financial or medical decisions. These cases can be complex, taking many months – and sometimes thousands of pounds – to resolve.
This is why setting up a Lasting Power of Attorney (LPA) can be so important, and it’s no surprise that your daughter wants you to consider it sooner rather than later. And unlike a will, this decision affects you while you're still with us!
LPAs are relatively cheap and easy to set up, which is why the number of people with one continues to grow (around 1 million are registered each year in the UK). Despite this, it's estimated that 77% of over-55s don't have anything in place, so you're far from the only person in your position.
In England and Wales there are two types of LPA, which cover different parts of your life: a Health and Welfare LPA, and a Property and Financial Affairs LPA. A Health and Welfare LPA can be used once you are unable to make your own decisions, while a Property and Financial Affairs LPA can be used either after you lose capacity or, if you choose, as soon as it is registered.
Each LPA costs a statutory fee of £92 at the time of writing, though fee reductions and exemptions may be available. Most people set up both at the same time.
In Scotland, the equivalent documents are known as Continuing Power of Attorney and Welfare Power of Attorney. You can read more about them here. Things are different again in Northern Ireland, where Enduring Power of Attorney (EPA) still operates - find out more here.
The person you nominate will be able to make decisions on your behalf if you become incapacitated, so it’s important that you trust them to act in your best interests. Family members are a common choice, though you might prefer to ask a close friend. Many people choose more than one attorney – there is no maximum number. If you want, you can nominate a different person for each type of LPA. Note that you can replace attorneys at any time.
It’s surprisingly simple to create your LPA forms online using the government website here. If you’d prefer to do this over the phone, you can contact the Office of the Public Guardian (OPG) on the number below.
Once your LPA forms have been created, you will receive physical documents to be signed and witnessed by all the people mentioned, as well as the certificate provider. For this reason, it’s a good idea to discuss the LPA with your nominees in advance.
The LPA forms will then have to be returned and registered with the Office of the Public Guardian – simply follow the instructions on your forms to do this. As long as there are no mistakes, the registration process should take around 8-10 weeks, but can take longer. (At the time of writing, the OPG say that the waiting time may be up to 20 weeks due to high demand. Fortunately they have future plans to roll out a completely digital application – I’ll be sure to write about that here!)
Setting up a Lasting Power of Attorney doesn’t mean you'll be giving up any control immediately, but this is an important decision which shouldn't be taken lightly. You may wish to discuss it with your loved ones or seek independent legal advice before making any commitment.
If you are still unsure, you can contact the Office of the Public Guardian directly at customerservices@publicguardian.gov.uk, or by calling 0300 456 0300 (call charges may apply).
The information in this article is for educational purposes only and should not be taken as legal or financial advice. Details are accurate at the time of publishing, and no liability is accepted for any inaccuracies or future changes. Always seek independent advice before making financial, legal or medical decisions.
