Setting Up a Lasting Power of Attorney in England and Wales

No one wants to think about being ill or losing their mental capacity; it is a difficult topic for many. However, for some individuals affected by illnesses, such as dementia or a stroke, it is a necessity, as they may need help managing their assets or welfare. In England and Wales, a Lasting Power of Attorney, previously the ‘Enduring Powers of Attorney’ until legislation changes in 2007, allows your loved ones to take care of you and your finances if you become unable to do so yourself.

The NHS states, ‘Research shows there are more than 850,000 people in the UK who have dementia’, and ‘It is estimated that by 2025, the number will be more than 1 million’. There is no time better than the present when it comes to setting up a Lasting Power of Attorney and, in England and Wales, there are some things that you should know beforehand.

What is a Lasting Power of Attorney in England and Wales?

A Lasting Power of Attorney (LPA) is an important document to consider if you will no longer be able to make decisions for yourself and want to ensure that your finances and welfare are being taken care of by someone you trust. There are different variations in Scotland, but in England and Wales, a LPA can help you to know that when it comes to making decisions, you have chosen people that you trust when they’re needed the most. A Lasting Power of Attorney makes it easier to plan ahead, not only for you, but for your friends and family, too.

You don’t need a solicitor to create a Lasting Power of Attorney, and it’s important to recognise that there are two different types of LPA in England and Wales. A Health and Welfare LPA allows your chosen person, or persons, to make decisions regarding your care such as where you live and medical treatment that may be required. This LPA can only be used if you are incapable of dealing with these matters yourself; however.

A Property and Financial LPA can be used as soon as it is registered, with your permission. In England and Wales, this LPA allows your chosen person or persons to handle your financial transactions relating to bills, property, benefits, and bank accounts.

Do I Need a Lasting Power of Attorney?

You may think that you will not need an LPA as your spouse will look after you if the worst happens. This is not the case. In England and Wales, a Lasting Power of Attorney is still required, and if one is not in place before you have lost mental capacity, your loved ones will have to apply to the Court of Protection for a Deputyship.

Deputyships can be a time consuming and costly process for your loved ones to endure during what can already be a difficult time. The solution to this is to take control and complete your Lasting Powers of Attorney while you are able to, giving you peace of mind for the future.

LPA registrations are currently taking 20 weeks; if something unforeseen happens or an error occurs the application may be delayed further. We have two key tips that will assist with a smooth-running LPA application registration in England and Wales.

Tip 1:
You should always ensure full names are submitted when filling out the application. There should be no initials i.e., JOHN FREDERICK BLOGGS; not JOHN F BLOGGS. If this is incorrect, your application will be rejected and further delayed.

Tip 2:
In England and Wales, the documents for the Lasting Power of Attorney forms must be dated in a particular order, like below, from first to last:

– Donor (Yourself)
– Witness to Donor (usually the certificate provider who has known Donor for more than 2 years)
– Certificate provider
– Attorneys and replacement attorneys (which are all witnessed)

Dating of the documents must all be on the same day or in the correct order of signature as listed above.

It is important to remember that a Lasting Power of Attorney is not a Will, and will cease upon the death of the Donor.

The registration costs £82.00 per person per power, under certain circumstances you may be eligible for a reduction or exemption, if you satisfy the necessary criteria.

Creating a Lasting Power of Attorney with CTT

We can assist you with creating a Lasting Power of Attorney; our industry-leading Legacy Software is continuously updated to be legally correct. It also has a unique feature that allows the Attorneys to make more informed financial decisions if they are aware of how the assets are to be disposed of in the Will when acting for the Donor.

These features mean that there are no unforeseen consequences or compliance issues for you as an advisor, ensuring the best advice for your clients at all times. For more information, contact the CTT Professional Services team today.