Whatever your circumstances, this is one of the most important legal documents you may ever put in place.
A Lasting Power of Attorney (LPA) grants authority to somebody you trust to make decisions on your behalf if you lose mental capacity in the future. These decisions can relate to your finances, property, health, and welfare.
The Two Types of LPA
There are two separate types of Lasting Power of Attorney:
- Health and Welfare
Covers decisions about medical treatment, care, daily routines, and living arrangements.
- Property and Financial Affairs
Covers decisions relating to bank accounts, bills, investments, property, and other financial matters.
You can choose to put one or both in place.
Why an LPA Might Matter More Than You Think
Many people prioritise writing a Will over completing an LPA. After all, you’ve worked hard to build and protect your assets, and you want to ensure they pass to the right people when you die.
However, an LPA is equally as important.
A Will only takes effect after death. An LPA protects you while you are still alive, ensuring that the people you trust can make decisions on your behalf if you become unable to do so yourself
It’s often assumed that a spouse, children, or close family members can automatically step in and manage your affairs should one lose mental capacity. In reality, this is not the case.
Without a valid Lasting Power of Attorney in place, your loved ones may need to apply to the Court of Protection to become a deputy. This process can be lengthy, stressful, and significantly more expensive than setting up an LPA in advance.
Currently, the Court of Protection chargesi:
- £421 application fee per deputyship application
- An additional £259 hearing fee if a court hearing is required
- A £100 assessment fee for new deputies
- Ongoing annual supervision fees of up to £320 per year
- Potential security bond costs, depending on the size of the estate
Professional legal support can also add thousands of pounds in additional costs.
The financial cost is only part of the issue. Deputyship applications can take several months to be approved, during which time families may struggle to access bank accounts, manage investments, pay bills, or make important care decisions.
Most importantly, the court ultimately decides who will act on your behalf, which may not be the person you would have personally chosen.
An LPA helps avoid unnecessary delay, uncertainty, and expense, while ensuring your wishes remain at the centre of any future decisions.
The Cost of Peace of Mind
In contrast, registering an LPA costs just £92, or £184 for both types.
You can set them up online via the UK Government website: https://www.gov.uk/power-of-attorney/register
If you do not feel comfortable completing the forms yourself, Citygate can introduce you to one of our trusted solicitors.
Timing Is Crucial
To set up an LPA, you must have the mental capacity to make the decision yourself. That’s why acting early is so important.
Once submitted, the registration process typically takes between eight and ten weeks.
Just as importantly, having open conversations with the people you appoint ensures they understand your wishes, values, and preferences should the time ever come.
Thank you,
The Citygate FP Team
Citygate Financial Planning Limited (trading as Citygate Financial Planning) is registered in England and Wales under company number 9188423, with its registered office at 80 Coleman Street, London, EC2R 5BJ. Citygate Financial Planning Limited is authorised and regulated by the Financial Conduct Authority (Firm Reference Number 647956).
