Posted on: 9 January, 2020

Lasting Power of Attorney: what you need to know

Paula Tedder, an Associate at Spratt Endicott Solicitors, qualified as a solicitor in 2007, and specialises in the preparation of Wills, Probate, Trusts, Lasting Power of Attorney and Deputyship Orders. Here, Paula outlines 5 key information points that everyone should know when it comes to Lasting Power of Attorney…

Firstly, it’s important to familiarise yourself with what an LPA actually is. It’s a very powerful legal document that, essentially, allows you to choose people that you trust to make decisions on your behalf, if at any point you become unable to make those decisions for yourself.

Two types of LPA

There are two types of LPA: one deals with property and finance, including the running of any bank accounts you may have, the handling of household bills, as well as managing any property that you own. Alongside this, it also deals with other financial elements such as your pension, taxes, any investments you might have as well as any instructions for your business if you’re a business owner.

 

The other type of LPA focuses on health and welfare. This one applies to where you live, whether that’s at home or in a care home, and taking decisions as to where is best for your wellbeing. It also takes into account other health elements such as managing doctors’ appointments and other medical needs – as well as looking at potentially more serious issues, such as either consent to or the refusal of life sustaining treatment.

 

Lasting Power of Attorney is often associated with those in the later stages of their life, however an LPA can be set up by anyone who is over the age of 18 at any point during their lifetime. This is something that is particularly important for those who own a business or have children. Having an LPA in place allows them to have a say in how their business is run, or how and by whom their children are brought up should anything unfortunate or unexpected occur.

 

All LPAs are issued by the Office of the Public Guardian. You can start the process online by going to https://www.gov.uk/power-of-attorney and following the steps.

 

However, given the powerful nature of an LPA and that it only comes into play when at your most vulnerable, seeking legal advice is recommended. Turning to a solicitor for guidance on the process can help to ensure that everything is carried out accurately and in line with your wishes.

Costs of an LPA

When it comes to legal fees in this instance, although solicitor fees do vary, a ballpark figure is a fixed fee, starting at £350 per document – this is the fee charged by most. However, many do offer reductions if you set up both LPAs at the same time (property and finance, as well as health and welfare) or if you are a couple wanting to set up one each.

 

The LPA also doesn’t come into effect until it has been registered with the Office of the Public Guardian, for which there is a registration fee of £82 per document. However, it’s also worth bearing in mind that people who receive state benefits might be exempt from paying the fee, and those who earn under £12,000 per annum can get a 50% reduction – in case this applies to you.

 

If you’d like more information on LPAs, you can visit the Spratt Endicott website, www.se-law.co.uk, or even speak to Paula directly.

 

Spratt Endicott is a leading, Oxfordshire based, Legal 500 law firm that provides a full range of legal services to both commercial and private clients.

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