It might be painful to think about, but the unexpected can strike at any time. A sudden accident or illness could leave you unable to manage your financial affairs or even struggling with routine tasks like washing and dressing.
Registering a Lasting Power of Attorney (LPA) could prove invaluable, providing peace of mind while cutting costs and stress for your loved ones.
According to IFA Magazine, record numbers of Brits registered LPAs in 2023, with annual appointments topping 1 million for the first time.
So what is an LPA, and why is it so important you have one?
Keep reading to find out.
There are 2 main types of LPA, and you might opt for both
Put simply, an LPA is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you are no longer able.
While you might think this is something to worry about only as you get older, remember that none of us know what is around the corner. You can register an LPA from the age of 18 and you’ll need to have mental capacity. Putting it off could mean you leave it too late.
There are two main types of LPA:
- Health and welfare LPA – Your appointed attorney can deal with medical, social and welfare concerns like your daily routines, healthcare, and even life-sustaining treatment options.
- Property and financial affairs LPA – Those you appoint have the power and authority to make decisions about finances and property, which might include paying bills, managing your bank accounts, or even selling your house.
It’s important to note that you can trigger a property and financial affairs LPA whenever you like. You might have full mental capacity but want help with money matters, or an accident might mean you’re unable to keep on top of your bills.
Your health and welfare LPA, meanwhile, can only be triggered after you have lost mental capacity. This allows your attorney to act if you receive a dementia diagnosis, for example.
5 important reasons to consider an LPA now
1. It’s easier than ever
One reason for the record number of registrations in 2023 is recent changes to how appointments are made. It is now easier than ever.
Faced with a huge backlog and an onerous process, the Office of the Public Guardian (OPG) moved many parts of the process online. It’s now possible to make and pay for an LPA digitally, while your chosen attorney can share your details with relevant organisations online too.
2. You can take back control
By choosing who will look after your affairs if you’re unable to, you seize control over a future shock now.
The appointment process is robust, allowing you to decide who would gain authority over which areas of your life, and even putting limits on the types of decisions they can make. You can appoint successors too, to take over should one of your attorneys pass away.
3. It’s quicker and cheaper than the alternative
Registering an LPA costs just £82 in England and Wales (the process is slightly different in Scotland and Northern Ireland).
With no LPA in place, your loved ones will have to apply to the Court of Protection to appoint a deputy. As of October 2024, the initial fee is £371 for each type of LPA, with an additional £494 payable if a court hearing is required. There’s an annual supervision fee too, payable to the OPG and a £100 assessment charge for a new deputy.
The whole process could take four to six months.
4. Less stress for your family
Appointing a deputy is costly and time-consuming, but more important might be the additional stress this causes your loved ones.
During the six months it takes to appoint a deputy, your affairs could go unmanaged, with huge ramifications. An LPA, on the other hand, allows for a quick and smooth transition for all parties.
5. Peace of mind for you
Once registered, an LPA remains in force until you need it. Registering an attorney now means you can appoint someone you trust, removing any risk of future coercion and putting you in control.
You’ll have peace of mind that your affairs will remain in order, whatever happens to you.
A legally binding LPA must be registered with the OPG, which can take up to three months, so act now.
Get in touch
If you have any questions about protecting you and your family against the unexpected, speak to us now. Get in touch by emailing hello@fingerprintfp.co.uk or calling 03452 100 100.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate Lasting Powers of Attorney.
