Lasting Power of Attorney

On 1st October 2007 the Enduring Power of Attorney (EPA) became the Lasting Power of Attorney (LPA). The latter is more powerful and has more safeguards built in, although it is more lengthy (25 pages) and complex.

As well as replacing the EPA’s use as a document to protect your PROPERTY AND AFFAIRS (“Lasting Power of Attorney – Property and Affairs” document), the change also meant the introduction of a SECOND document allowing you to specify somebody to look after your PERSONAL WELFARE (“Lasting Power of Attorney Personal Welfare” document).

Everybody who makes a Will should also make a Lasting Power of Attorney. If you care enough about what happens to your assets after you die, you ought to care even more about keeping them safe whilst you are alive.

While a Will ensures that your estate is distributed according to your wishes when you die, a Lasting Power of Attorney protects your assets by authorising somebody chosen by you to deal with your affairs on your behalf (should you become unable to manage them yourself) whilst you are alive.

• You may suffer an accident and be confined to bed or hospital, or worse still, become permanently incapacitated.
• You may become mentally incapacitated as a result of old age or for some other reason.

If you do not have an LPA, then the only way that your financial affairs can be managed is by an application (by a relative or other person close to you) to the Court of Protection. This can take up to 10 months and cost up to £1000. to process – during which time your finances could be seriously damaged – and the person authorised to manage your affairs on your behalf is not only unlikely to be who you would have chosen, but may even be a Court Official – who can (and will) charge every time he/she acts for you.

Note – you must be mentally capable to make an LPA – therefore, if you don’t have one – then by the time you really need one it’s too late.