Financial LPA
Financial Lasting Power of Attorney (LPA)
Considering a Financial Lasting Power of Attorney (LPA) isn't about expecting the worst—it’s about practical preparation to ensure your finances remain secure and well-managed, whatever life might bring.
What is a Financial Lasting Power of Attorney?
A Financial LPA is a legal document allowing you ('the donor') to appoint trusted a trusted individual ('the attorney') or individuals ('the attorneys') to manage your financial affairs if you become unable to do so yourself, due to illness or incapacity.
It covers decisions about:
Paying bills and household expenses
Managing bank accounts and investments
Handling property transactions
Making financial decisions regarding your care
Why Set Up a Financial LPA?
Without an LPA, managing your finances can become complicated and stressful for your loved ones. Family members would need to apply to the court for authority, a process that’s both expensive and time-consuming. Having an LPA ensures someone you trust can manage your finances efficiently and according to your wishes.
Setting Up a Financial LPA in England and Wales
Here's how:
1. Choose Your Attorneys: Select someone reliable, responsible, and capable. You can choose multiple attorneys to act jointly (together) or separately (jointly and severally).
2. Complete the Official Forms: Fill out the forms provided by the Office of the Public Guardian (OPG). You can complete them online or download here.
3. Certificate Provider: You must have your LPA certified by someone independent (not the attorney!) who confirms you fully understand the document and aren’t being pressured.
4. Registration: Register your completed LPA with the Office of the Public Guardian (registration can take up to 10 weeks, so early planning is essential). The application fee is £82.
5. Register the LPA: It must be officially registered before it can be used—this usually takes several weeks, so plan ahead. The application fee is £82.
6. Discuss Your Wishes Clearly: Communicate your wishes clearly with your attorney—particularly regarding serious treatments and end-of-life care.
You can set this up yourself - many people do - and the only cost would be the fee of £82, however some people choose to use a solicitor, because it's quite a lengthy and formal document. However, the government website https://www.gov.uk/government/publications/make-a-lasting-power-of-attorney has an excellent downloadable step-by-step guide, so there's no point creating a detailed how-to-guide here, and small mistakes can be corrected by the OPG team. What's more, you can call them on 0300 456 0300 if you want some specific guidance.
Financial Power of Attorney in Scotland and Northern Ireland
Scotland:
Called a "Continuing Power of Attorney."
Must be registered with the Office of the Public Guardian Scotland (OPG Scotland).
Requires a solicitor or doctor to certify you understand the implications.
Northern Ireland:
Called an "Enduring Power of Attorney (EPA)."
It must be registered with the Office of Care and Protection only when the donor becomes incapable.
Key Practical Points to Remember
Clearly Communicate Your Wishes: Discuss your preferences and financial priorities with your chosen attorneys to ensure clarity and consistency.
Regular Reviews: Regularly revisit your arrangements to reflect changes in relationships or financial circumstances.
Alternative Attorneys: It's wise to appoint backup attorneys who can step in if your first choice becomes unable to act.
Common Misconceptions
An LPA does not mean losing control immediately; it can be activated only if you lose mental capacity, or if you choose to activate it earlier for convenience.
Your attorneys must always act in your best interests and follow strict guidelines to manage your finances responsibly.