A Property and Financial Affairs Lasting Power of Attorney, or LPA, is a legal document that allows you as the donor to appoint one or more people you trust as attorneys. It gives them the authority to make financial decisions on your behalf if you lose the mental capacity to make them yourself. You must have full capacity when you make your LPA and your attorneys are obliged by law to act in your best interests.
Making an LPA
Although paper forms still exist, most people now make their LPA online, either with the help of services like https://powerofattorneyonline.co.uk/ or directly via the government website.
Authority granted
Under the authority of a Property and Financial Affairs LPA, your attorneys look after all your financial matters, including paying bills, operating bank accounts, claiming benefits, handling investments and buying or selling property.
Your LPA will issue specific instructions for your attorneys to follow, such as not selling your home without medical advice. You may also include preferences, which are non binding wishes, such as a commitment to make charitable donations.
Registration
Before an LPA can be used, it must be registered with the Office of the Public Guardian at a cost of £82. This can take up to 20 weeks, so it pays to act quickly.
Consequences of not making an LPA
Without an LPA, your relatives will not automatically have the power to manage your finances. Instead, they will have to apply to the Court of Protection, which takes longer and is more expensive.