Gardner Leader

Why it’s urgent that you prepare an LPA

When you lose the ability to manage your own affairs or to make decisions about your money, it can be extremely distressing for loved-ones or family members who have to make arrangements and decisions on your behalf. Practical matters are made infinitely easier however, if legal attorneys have been appointed.  Robert Jobson, partner in the Inheritance Protection Team at Gardner Leader LLP Solicitors, explains the importance of preparing a lasting power of attorney (LPA).

What is an LPA? 

An LPA is a legal document which allows decision making to be delegated to your chosen attorneys so they can make decisions when you are unable to do so. There are two types of LPA:

• LPA (health and welfare) enables you to delegate decisions about your personal health such as the medication and type of care you receive.
• LPA (property and financial affairs) enables your attorneys to manage your finances.

A common misconception is that LPAs are only for elderly people who have dementia and cannot manage their finances. Whilst they are invaluable for such people, there are other circumstances where LPAs can be of benefit:

• When you can’t manage your business - All business owners should seriously consider preparing an LPA (property & financial affairs) so that their business affairs can be easily managed by a trusted family member or member of staff should they become incapacitated for any reason. This could be through sudden illness or unplanned events (such as being stuck overseas due to volcanic eruptions!)
• When a debilitating illness takes hold - If you suffer from an illness which is likely to cause a progressive decrease in your ability to communicate or sign documents, then an LPA (health & welfare) will be invaluable.
• When the unexpected happens - It is widely accepted that we all need a will. Everyone should also consider an LPA to provide for the sudden unexpected onset of a serious illness such as a stroke or dementia. Your family will be extremely grateful that you have made provision for such a circumstance.

What are the consequences of not having an LPA?

The person who wants to help you will have to apply to the Court of Protection for a deputyship order. Whilst deputyship orders do work, they are extremely unwieldy and the process can be very time-consuming, slow and expensive. I know for a fact that all my clients who have to apply for a deputyship order would much rather the person they care for, and whose affairs they are trying to organise, had prepared an LPA.

How is an LPA arranged?

Preparing an LPA is a relatively straightforward process and can be done very quickly. However, you will need to obtain a “certificate of capacity” which can generally be provided by the solicitor who advises you on the LPA preparation. That certificate is a confirmation that, in the solicitor’s opinion, you fully understand and comprehend the effect of the LPA. This is why it is essential to prepare the LPA sooner rather than later.

However, before the LPA can be used by your attorneys it will need to be registered at the Office of the Public Guardian. This will take a minimum of 5 weeks but, due to current delays at the Office of the Public Guardian, it can take 10-15 weeks. This is another reason to get the process in motion sooner rather than later.

[Back]