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Lasting Power Of Attorney (LPA) |
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What is Lasting Power Of Attorney L.P.A.) ?
A Lasting Power of Attorney (LPA) is a means by which you can give someone authority over your property and financial affairs in the event of your incapacity. It is a legal document appointing a person or persons of your choice to be your attorney(s).
From October 2007, LPAs have replaced Enduring Power of Attorney (EPA) in England and Wales. LPAs are governed by the Mental Capacity Act 2005. You are now no longer able to make an EPA.
The two different types of LPA:
1. A property and financial Affairs LPA
This is similar to the old EPA. This allows you to choose someone you trust to manage or make decisions about your finances and property on your behalf should you be unable. Your attorney can operate a bank accounts, make investment decisions, sign tax returns, purchase or sell a property on your behalf.
This power can operate solely from the onset of mental incapacity or your attorney can manage some or all of your property and financial affairs on your instruction while you still have capacity.
If there are power's you do not wish your attorney to have, you may place conditions and/or restrictions in the LPA document.
The foresight in setting up an LPA can save your estate thousands of pounds and also save a great deal of time so your trusted attorney(s) can control your estate from the day it is needed and not have to wait months for a date to make an application to the courts.
2. A personal health and welfare LPA
This is new and allows you to choose someone you trust to make decisions on your behalf relating to your personal health and welfare. These decisions may include giving or refusing consent to medical care and treatment in circumstances where you the donor has lost the capacity to make such decisions for yourself.
Any decisions can only be taken on your behalf if your attorney believes that you lack the capacity to make the decision yourself.