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Sunday, 22 November 2009

Managing your affairs and lasting power of attorney (England and Wales)

A lasting power of attoney (LPA) can be used in relation to your financial affairs or your personal welfare. Find out how you can appoint a friend, relative or professional to hold an LPA for you.

What is lasting power of attorney (LPA) in England and Wales?

An LPA has no legal standing until it's registered with the Office of the Public Guardian

LPA is a legal document that lets you appoint someone you trust as an ‘attorney’ to make decisions on your behalf. This document can be drawn up at any time while you have capacity (are still mentally capable). You must register your LPA with the Office of the Public Guardian if your document is to have a legal standing. A registered LPA can be used at any time, whether you have the mental ability to act for yourself or not.

You can create two types of LPA:

  • Property and Affairs LPA
  • Personal Welfare LPA

Property and Affairs LPA
A Property and Affairs LPA allows you to choose someone to make decisions about how to spend your money. This can include decisions on the way your property and affairs are managed.

Personal Welfare LPA
A Personal Welfare LPA allows you to choose someone to make decisions about your healthcare and welfare. This includes decisions to refuse or consent to treatment on your behalf and deciding where you live. These decisions can only be taken on your behalf when the LPA is registered.

Who should you appoint?

When appointing LPA you should consider:

  • how well the person looks after their own financial affairs
  • how well you know the person
  • whether you can trust them to use your money to meet your needs and make decisions in your interests
  • how happy they will be to take on the role

It may be a good idea to appoint more than one person to help prevent abuse of the responsibility.
 
You can use a solicitor to set up an LPA or the online form on the Office of the Public Guardian website.

Before you appoint someone to be your LPA you need to make sure they have been told about it. This process of being told is called 'receiving notification'.

Seeking professional advice

Depending on how complicated your property and financial affairs are it may be a good idea to get advice from a solicitor before making an LPA. You can get further advice from the Office of the Public Guardian about making an LPA.

Registering an LPA

To register your LPA either you or your attorney can apply to the Public Guardian. The application can be made at any time after you have made an LPA. The Public Guardian will give notice that the application has been received to:

  • you as the donor
  • the attorney or attorneys

Your relatives will not be notified of the application to register the LPA unless you have named them as someone who should be given notice. Anyone who has been notified can object to the LPA being registered.

Once the LPA is registered it continues indefinitely. The LPA can be registered by the attorney after you have lost capacity.

Enduring power of attorney (EPA)

EPA was replaced by lasting power of attorney on 1 October 2007. A person given power under an EPA before 1 October 2007 can still use it and apply to have it registered. There are times when the EPA has a responsibility to use this power. This might happen when you are becoming or have become mentally incapable of making financial decisions for yourself.

If you have an unregistered EPA and still have the capacity to make decisions yourself, you can make a Personal Welfare LPA to run alongside it.

Cancelling powers of attorney

Lasting power of attorney (LPA)
You can cancel your LPA if you have the mental capacity to do so. If there is a dispute about whether your LPA has been cancelled, the Court of Protection has the authority to make a decision.

A Property and Affairs LPA is revoked if you or your attorney becomes bankrupt; bankruptcy does not end a Personal Welfare LPA.

Enduring power of attorney (EPA)
You can cancel an unregistered EPA if you have the mental capacity to do so, without applying to the Court of Protection. To cancel a registered EPA you must apply to the Court of Protection.

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