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Navigating the world of legal documents can feel like trying to decipher an alien language. But when it comes to safeguarding your future, understanding lasting power of attorney (LPA) is crucial. Our wills and probate lawyers are experts and can provide advice that can make all the difference to your and your family's future.
This legal document allows you to appoint someone you trust to make decisions on your behalf should you lose mental capacity in the future. There are two kinds of LPA - one for financial matters and property and another for health and care decisions.
Setting up an LPA isn't as daunting as it sounds, but it's essential to get it right. From understanding their basics to navigating potential risks and getting professional help, we will cover it all below. But first:
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However, if the day comes when your LPA is needed, your loved ones will be so grateful that you had the forethought to put a lasting power of attorney LPA in place, which will enable them to make decisions on your behalf and ensure your financial and health issues are looked after when you are not able to do so for yourself.
Key Takeaways
Lasting Power of Attorney (LPA) is an important legal document that authorises someone to manage affairs if mental capacity is lost.
There are two types of LPA: Health and Welfare and Property and Financial affairs.
Attorneys can only act when mental capacity is lost or as soon as the LPA is registered.
It is crucial to arrange an LPA before losing mental capacity to ensure that trusted attorneys can carry out your wishes.
Understanding the Basics
Thinking about setting up a lasting power of attorney (LPA) with RG Law? Here's what you need to know.
An LPA is a vital legal document that allows someone to make decisions for you if you lose mental capacity, whether due to illness or injury. It’s relevant for all ages, as unexpected health issues can occur at any time.
There are two types of LPAs: the health and welfare LPA, which covers medical and living decisions, and the property and financial affairs LPA, which gives authority over financial matters, such as paying bills or managing property. Setting up an LPA while you’re still mentally capable is essential. Registering an LPA requires an application to the Office of the Public Guardian (OPG), including a fee unless exemptions apply. At RG Law, we’ll guide you through every step of this important process. Explore how these LPAs can safeguard your interests with RG Law. Instruct a conveyancer: Once you have a mortgage offer, you'll need to instruct a remortgage conveyancing solicitor to handle the legal work for you. You can either use the same remortgage conveyancing solicitor you used when you bought the property or find a new one. Title investigation: Your conveyancer will investigate the legal title of the property to ensure that there are no issues that could affect the remortgage. Valuation: Your new lender will usually carry out a valuation of the property to ensure that it is worth the amount you are borrowing. Mortgage offer: Once the valuation has been carried out, your new lender will issue a formal mortgage offer. Signing the new mortgage deed: Your conveyancer will prepare the new mortgage deed for you to sign, which will confirm your agreement to the terms and conditions of the new mortgage. Completion: On the completion date, your conveyancer will receive the funds from your new lender and use them to pay off your old mortgage. Any remaining funds will be transferred to you. Registration: Your conveyancer will register the new mortgage with the Land Registry and update the ownership details.
What types of Last Power of Attorney are there?
Property and Financial affairs
This LPA allows your Attorney(s) to deal with:
Paying your bills
Collecting income and benefits
Dealing with your tax affairs
Selling or buying your home
May have authority straight away or only for certain assets or only if you have lost mental capacity
Health and welfare This LPA allows your Attorney(s) to deal with: Where you live Your medical and day-to-day care Your diet, dress and visitation Even whether to give or refuse life-sustaining treatment if you chose Authority will only be effective if you have lost mental capacity
Removal and Cancellation
It's crucial for you to know that should things go awry, there are options in place to revoke or change the person who has been given authority over your affairs. You hold the right to remove your attorney under certain circumstances, but typically, it requires you to have mental capacity at the time.
This is why it is advised that you seek the help of a professional such as a lawyer or a solicitor.
Here's what you need to understand about removing or cancelling an LPA:
If you have mental capacity and are unsatisfied with your appointed attorney, you can end their power of attorney status by contacting the Office of Public Guardian.
In case of misconduct by your attorney, such as misuse of finance or failing to act in your best interest, they can be removed.
If two attorneys were appointed jointly and disagreements arise between them causing disruption in decision-making, one can be removed. A divorce or dissolution of a civil partnership may also lead to automatic revocation unless specified otherwise in the LPA document. Lastly, if no replacement attorney was named and yours becomes bankrupt or dies, then the LPA ends automatically. Understanding the Role of Attorneys in Key Decisions Legal guidance, like that from an attorney or probate lawyer, offers reassurance for significant decisions.
Common LPA Questions
What if attorneys disagree?
They should resolve issues amicably, but may need legal advice or Court of Protection if unresolved.
Can an attorney withdraw after activation?
Yes, by formally notifying the donor and Office of the Public Guardian.
When might an LPA not be recognized? If it’s improperly registered or signed with the Office of the Public Guardian. How does fluctuating capacity impact LPA decisions? An LPA ensures your wishes are upheld during periods of reduced capacity. Can you set up an LPA for business purposes? Yes, a Business LPA manages professional matters if you lose capacity, distinct from a personal LPA.
