Set up lasting power of attorney with confidence

How do I set up a lasting power of attorney?

Setting up an LPA is straightforward but involves several steps and takes 8 to 10 weeks from start to registration.

1. Decide which type of LPA you need: Most people set up both a property and financial affairs LPA and a health and welfare LPA. You can set up one or both, and you can choose different attorneys for each type.
2. Choose your attorney: Your attorney must be over 18 and have mental capacity. Choose someone you trust completely. You can appoint more than one attorney and specify whether they must act jointly (all agree), jointly and severally (any one can act alone), or jointly for some decisions and severally for others.
3. Choose a certificate provider: Every LPA needs an independent certificate provider who confirms you understand the LPA and are not being pressured. This person must be someone who has known you personally for at least 2 years, or a professional such as a solicitor, doctor, or social worker.
4. Complete the LPA form: You can fill in the form online at GOV.UK or use a solicitor or specialist service. The online form guides you through each section and checks for common errors before submission.
5. Sign and witness the LPA: The LPA must be signed by you (the donor), your attorneys, and your certificate provider in the correct order. Your signature must be witnessed by someone aged 18 or over who is not an attorney named in the LPA.
6. Register with the Office of the Public Guardian: Submit the signed LPA with the £82 registration fee. Registration takes 8 to 10 weeks. The LPA cannot be used until it is registered. A property and financial affairs LPA can be used as soon as it is registered (with your consent), while a health and welfare LPA can only be used when you lack capacity.

What is the difference between the two types of LPA?

The two types of LPA cover completely different areas of your life. Understanding what each one does helps you decide which you need.

Most advisors recommend setting up both types. A property and financial affairs LPA alone leaves health decisions to doctors and social workers. A health and welfare LPA alone means no one can access your bank accounts to pay for your care.

How much does a lasting power of attorney cost?

LPA costs break down into registration fees and professional drafting fees. Here is what you can expect to pay.

The cost of not having an LPA is significantly higher. A Court of Protection deputyship application costs £371, takes 4 to 6 months, and incurs an annual supervision fee of £320. Professional deputies charge additional fees, often 3% to 5% of the assets they manage. Setting up both LPAs with professional help costs a fraction of what a deputyship costs in its first year alone.

What happens if I do not have a lasting power of attorney?

Without an LPA, no one can automatically manage your affairs if you lose mental capacity. Here is what your family faces.

• Bank accounts are frozen: Banks will freeze your accounts once they become aware you lack capacity. Your family cannot access your money to pay bills, mortgage payments, or care fees. This can take weeks or months to resolve through the Court of Protection.
• Court of Protection deputyship is expensive and slow: Your family must apply to the Court of Protection for authority to manage your affairs. The application costs £371, requires medical evidence of incapacity, and typically takes 4 to 6 months. Annual supervision fees of £320 apply, and professional deputies charge ongoing management fees.
• Medical decisions are made without your input: Doctors and social workers make health decisions in what they believe is your best interest. Your family can be consulted but has no legal authority to make decisions. If there is disagreement about your care, it may need to be resolved by the Court of Protection, which adds cost and delay.
• Property cannot be sold: If you need to sell your home to fund care, no one can do this without Court of Protection authority. The process adds months of delay and thousands in legal fees at a time when the money is most needed.
• Care home choices are limited: Without someone with legal authority to make decisions, the local authority may place you in whatever care home has availability rather than the one your family would choose.

What are the best tips for setting up a lasting power of attorney?

1. Set up both types at the same time: Most providers offer a discount for setting up property and financial affairs and health and welfare LPAs together. Doing both at once saves money and ensures complete coverage. The combined registration fee is £164.
2. Choose your attorneys carefully: Your attorney will have significant power over your life. Choose someone who is trustworthy, organised, and willing to take on the responsibility. Consider whether they live nearby enough to manage practical tasks. Appoint a replacement attorney in case your first choice cannot act.
3. Consider appointing more than one attorney: Multiple attorneys provide a safeguard against misuse. You can require them to act jointly (all must agree) for major decisions like selling property, and severally (any one can act) for routine tasks like paying bills.
4. Add preferences and instructions: You can include guidance about how you want your attorneys to act. Preferences are wishes your attorneys should consider but do not have to follow. Instructions are binding requirements they must follow. For example, you might instruct that your home should not be sold while your spouse is alive.
5. Register immediately after signing: Do not wait until you need the LPA to register it. Registration takes 8 to 10 weeks, and if you lose capacity before the LPA is registered, it cannot be used. Register as soon as the form is signed and witnessed.