How to help clients create a lasting power of attorney

If these documents are not in place when a person loses capacity, then their next of kin will need to apply to the Court of Protection for a deputyship order before any decisions regarding these matters can be made. 

This process can be time-consuming in contrast with creating lasting powers of attorney.

Registering an LPA with the OPG takes around eight weeks, in comparison with the two to three months it might take for the courts to appoint a deputy. 

Deputyship applications are costly, too: £400 for the application itself, plus a further £500 if the court decides that the case requires a hearing.

Unlike appointed attorneys, deputies will also have to pay an annual fee to the OPG for each year in which they act – currently £320 for deputies managing more than £21,000 worth of assets.

In contrast, LPAs carry a one-off registration fee of £82 per LPA. Further reductions and exemptions are available to those on certain benefits or those earning less than £12,000 annually. 

Perhaps the most important advantage of an LPA, however, is the speed and efficiency with which attorneys can act.

LPAs can be registered by the donor while they still have capacity; at this point, their attorneys can feasibly begin making decisions on the donor’s behalf provided that they have obtained permission to do so.

Once the donor loses capacity, the attorneys can also step in to act right away, avoiding the delays to asset management and welfare decisions that a deputyship application invariably brings. 

An LPA for property and financial affairs allows attorneys to access bank accounts and investments, and to make decisions regarding the management of financial assets owned by the donor.

It is also possible to withhold attorneys’ powers until such a time as the donor has lost capacity. While this might seem like a safer option, it can cause delays by requiring attorneys to evidence the donor’s loss of capacity each time they act.

There are statutory protections in place to offer security for donors, and in the vast majority of cases it is better to elect trusted attorneys and remain vigilant than it is to delay the onset of attorneys’ powers. 

What do LPAs allow my clients to achieve?

Although LPAs offer the most efficient and effective means of safeguarding one’s future financial and personal welfare, the advantages of these documents, and the risks of neglecting them, are not widely known.

In 2014, OPG-commissioned research found that 45 per cent of adults aged over 45 had not even heard of an LPA, and while that number has hopefully decreased considering the rise in annual applications, there is no reason to believe that it has greatly diminished.