Lasting powers of attorney – protecting your future

Life is full of important decisions, and planning for the future is one of the most crucial. A Lasting Power of Attorney (LPA) ensures that, should you ever be unable to make decisions for yourself, someone you trust is legally able to act on your behalf.

At Personal Wealth Matters, we believe in being with you for the journey – helping you make informed choices that protect you and your loved ones at every stage of life. Whether it’s managing your finances or making critical healthcare decisions, setting up an LPA gives you peace of mind that your wishes will be respected when it matters most.

Let us guide you through the process with care, expertise, and a personal approach that puts your needs first.

Have you ever thought about what would happen if you were no longer able to make your own decisions? It’s not something most people like to consider, but the reality is that many do lose mental capacity.

One in three people over 65 will develop some form of dementia, but it’s not just something that affects older people. Accidents, strokes, brain injuries, or serious illnesses can happen at any age, leaving someone unable to manage their own affairs.

Many people assume that their partner or family would automatically be able to step in, but that’s not the case. Even if you're married or in a civil partnership, your spouse has no legal right to handle your finances or make decisions about your care. The only way to ensure that the people you trust have the authority to act on your behalf is by putting a Lasting Power of Attorney (LPA) in place. It’s a simple step that gives you peace of mind, knowing your future is protected, whatever happens.

  • A Lasting Power of Attorney (LPA) is a legal document that lets you choose someone you trust to manage your affairs when you're unable or unwilling to do so. You can select one or more Attorneys to act on your behalf, giving them the authority to make decisions about your financial, property, and health matters.

    There are two types of LPA in England and Wales:

    1. Property and Financial Affairs LPA
    This allows your Attorney(s) to manage your finances and property, including tasks like:

    • Managing bank accounts

    • Paying bills

    • Collecting benefits or pensions

    • Signing financial paperwork

    • Selling property

    This LPA can be used as soon as it’s registered, if desired, for short-term situations like hospital stays, or it can be set to activate only if you lose mental capacity.

    2. Health and Welfare LPA
    This allows your Attorney(s) to make decisions about your healthcare and personal welfare, such as:

    • Daily routine, including bathing, dressing, and diet

    • Medical treatment and ongoing care needs

    • Decisions regarding life-sustaining treatment

    • Moving into a care home

    • Interacting with social services on your behalf

    This LPA can only be used once you are unable to make decisions due to a loss of mental capacity.

    • You must be over 18 years old and have full mental capacity when making your LPA. If you have already lost mental capacity, it is too late to create one.

    • Your LPA needs to be registered with the Office of the Public Guardian before it can be used. The registration process can take up to 10 weeks.

    • Currently, it costs £82 to register an LPA with the Office of the Public Guardian. However, there are exemptions and reductions available for those on means-tested benefits or earning less than £12,000 per year.

    • LPAs last a lifetime and will protect you and your estate until you pass away.

    • LPAs can be temporary or permanent. For example, they can be used if you go into hospital for a while or move to another country temporarily and need someone to manage your UK affairs.

    • A Health and Welfare LPA can only be used once you have lost mental capacity.

    • A Property and Financial Affairs LPA can either be used as soon as it’s registered or only when you have lost mental capacity.

    • You choose who you want to be your Attorney, whether it’s a family member, a friend, or a professional – the choice is yours.

    • You can choose one Attorney or several. In practice, it is advisable to have more than one Attorney to act as a safeguard and ensure decisions are made together.

    • If you lose mental capacity without having a Lasting Power of Attorney (LPA), your spouse or a relative would need to apply to the Court of Protection to become your Deputy. This process can be both costly and time-consuming, adding unnecessary stress for your loved ones during an already difficult time. The current application fee is £400, and if there is a court hearing, it will cost an additional £500. Once appointed, the Deputy will be given specific instructions on what they can and cannot do and will be required to submit annual reports. Ongoing supervision can cost up to £800 per year, depending on the level of oversight required. These fees can quickly add up, often running into thousands of pounds.

    • Additionally, your bank accounts will be frozen until a Deputy is appointed, including joint accounts. This means the person you share accounts with will be unable to access any funds, potentially causing significant inconvenience, particularly if access to funds is urgent, such as for salaries or pensions.

    • If you jointly own a property with someone who has lost mental capacity, you won’t be able to sell the property until the Court of Protection has been involved.

    • Without an LPA in place, your family would have no authority to make decisions regarding your medical care or treatment, which means your wishes may not be followed.