Why is Lasting Power of Attorney so important?

Why is Lasting Power of Attorney so important?

You may have heard the phrase Lasting Power of Attorney in the news and on TV, but what is it and what does it do?

Zoe Watson, paralegal in the Wills, Trust and Probate team at Wake Smith Solicitors, takes a look at some commonly asked questions about these very important documents.

This article covers:

• What is a Lasting Power of Attorney?
• Can’t my spouse/children help me without an LPA?
• Who should I appoint as my attorney?
• What happens if I lose capacity and don’t have a Lasting Power of Attorney?
• What happens if I make a Lasting Power of Attorney and don’t lose capacity?
• What happens when I die?
• What if someone has concerns about how my affairs are being managed?
• Your next move?

 

What is a Lasting Power of Attorney?

A Lasting Power of Attorney is a document that you put in place while you are fit and well where you appoint people you trust (your attorneys) to help and assist you in the event that you become mentally incapable of managing your own affairs either through illness or accident in the future.

There are two different types of Lasting Power of Attorney which can be put in place:

Property and Finances

This document allows your attorneys to manage bank accounts and investments on your behalf, sell, buy or transfer property, pay bills, apply for or manage benefits you may be entitled to, completing tax returns and making cash gifts. Basically, anything that you can do with your own money and property, your attorney will be able to do.

It is also possible for this document to be used while you still have mental capacity, with your permission of course! This can be helpful if you are often overseas and would like someone to be able to take care of things while you are away or if you have a physical disability which may make it hard for you to leave the house or speak on the phone for example.

Health and Welfare

This document allows your attorneys to make decisions relating to medical treatment and what medication you receive, it also allows them to sit in at hospital or doctor’s appointments with you, and to choose where you should live and what care you should receive.

There is also an option in this document, which allows you to authorise your attorney to make decisions about life sustaining treatment, such as accepting or refusing things like a serious operation, such as a heart bypass, accepting or refusing cancer treatment and making decisions about end of life, such as turning off a life support machine.

 

Can’t my spouse/children help me without an LPA?

No, it is a common misconception that your closest family members will be able to help just because they are related to you, but this is not correct.

If you hold any joint assets with someone, then the other party named on the account or property will be able to manage this, but if you want to close the account or sell the house both parties have to be able to sign paperwork to this effect and so this is where the Lasting Power of Attorney would come in for joint assets. Any property or accounts in your sole name or when it comes to matters of care would need someone to be legally appointed for them to be able to help.

 

Who should I appoint as my attorney?

You can appoint anyone to be your attorney as long as they are over 18. In reality most people appoint their closest relatives or friends, but the main thing is that you should trust this person implicitly, after all you are granting them the ability to run your life for you in the event of mental incapacity.

You should also think about whether they have the time and the ability to help you. Can they get to hospital appointments with you, are they tech savvy and can use online banking, do they understand how to manage finances.

You can also appoint a professional such as a solicitor or accountant to be your attorney for Property and Finances. 

 

What happens if I lose capacity and don’t have a Lasting Power of Attorney?

If you lose capacity without a Lasting Power of Attorney, then your closest relative will have to apply to the Court of Protection in order to be named as your Deputy. This Order from the Court will allow your Deputy certain powers to enable them to deal with your property and finances.

It is very rare that the Court will appoint anyone to be a Health and Welfare Deputy and so it is highly likely that any decisions in relation to your health and care will be made by the local authority and medical professionals.

You should also be aware that this method is much more expensive than the preparation of Lasting Powers of Attorney and the current timeframes for the Court to grant a Deputyship Order is around 18 months for simple applications, meaning that you could be left without your affairs being managed for this length of time while you are waiting for someone to be named as your Deputy.

 

What happens if I make a Lasting Power of Attorney and don’t lose capacity?

Hopefully this will be the case because it means you have lived a healthy life!

Yes, you will have paid for documents that you haven’t needed to use, but don’t think of this as a waste of money, think of it almost like an insurance policy. We are all happy to pay home insurance every year as peace of mind that if the roof blew off, we would be covered, but we all hope that we never have to use it.

 

What happens when I die?

A Lasting Power of Attorney is only valid while you are alive. As soon as you die, it becomes void, and your Will takes over, or if you don’t have a Will, the Intestacy Rules will take over.

 

What if someone has concerns about how my affairs are being managed?

When you make Lasting Power of Attorney, they are registered with a body called the Office of the Public Guardian who are effectively a Court. If anyone has concerns that your attorneys are not acting in your best interests, then they can make a report to the Office of the Public Guardian who then have a duty to follow this up.

 

Your next move?

If you have any questions, or would like to book an appointment to review your Will and estate planning please contact our Private Client Team online, or call us on 0114 266 6660.

Published 25/03/26