Property and financial affairs lasting power of attorney
If you have property and financial lasting power of attorney for someone, you have responsibility for making decisions relating to their finances on their behalf.
If you have legal responsibility to manage someone’s finances, you must act in their best interests. Ideally, you’ll be aware of what’s important to them and how they would like their affairs to be managed. If you’re able to talk to someone about possible big decisions while they still have mental capacity, this will make it easier in the future. Steve Dubbins, Director of Services, Dementia Carers Count
What is a property and financial affairs lasting power of attorney
A property and financial affairs lasting power of attorney (LPA) is a legally binding document. If you have property and financial affairs lasting power of attorney for someone, you have responsibility for making decisions about their finances and managing their financial affairs.
What sort of decisions you are responsible for
Decisions that you may be responsible for include:
- Paying bills
- Setting up standing orders
- Selling a property
- Making gifts to family members
You must always act in the person’s best interests.
Mental Capacity
A person can only ask you to be their property and financial affairs attorney if they have the mental capacity to understand what they are doing.
The person who is granting legal power of attorney is known as the ‘donor’.
Guarding against exploitation
As a safeguard against exploitation of vulnerable people, every lasting power of attorney must have a “certificate provider”.
The certificate provider certifies that they have discussed the lasting power of attorney with the donor. They confirm that the donor understands what they are doing and that no pressure has been put on them.
Certificate providers can be someone who has known the donor for at least two years, or a relevant professional.
Anyone being appointed as an attorney cannot be the certificate provider.
Having more than one attorney
You may not have sole responsibility for decision making.
It’s recommended that if possible more than one attorney is appointed, in case someone is unable to act for any reason.
The donor can state whether all the attorneys have to agree unanimously on all decisions, or whether individual attorneys can make decisions on their own.
You should know whether you need to discuss decisions with any other attorneys.
All attorneys have to sign the legal document. By signing, they agree to act for someone and confirm that they understand their responsibilities.
How to set up a property and financial affairs lasting power of attorney
Lasting powers of attorney forms can be completed online and then printed and signed.
You may choose to use a solicitor or will writer to draw up a lasting power of attorney. However, it is possible to complete the forms yourself. There is an £82 registration fee. This fee is reduced or waived in cases of low income.
Don’t forget to register a lasting power of attorney
All lasting powers of attorney must be registered with the Office of the Public Guardian (OPG). Otherwise, they cannot be used.
It takes 8 to 10 weeks to register a lasting power of attorney if there are no mistakes in the application.
When you can use property and financial affairs lasting power of attorney
The donor can set up their property and financial affairs legal power of attorney so that their attorney(s) can act immediately. Or they can set it up so that their attorney(s), can only act when the donor has been assessed as lacking capacity to continue making decisions.
While someone still has mental capacity, they can overrule their attorney or cancel the lasting power of attorney altogether.
If they no longer have the mental capacity, then they cannot change the lasting power of attorney.
Call our Carer Support Line for advice
Call our Carer Support Line with any questions you have about lasting power of attorney. We’re here to help.
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Health and welfare lasting power of attorney
If you have health and welfare lasting power of attorney for someone, you have responsibility for making decisions relating to their health and welfare on their behalf.
Mental capacity and best interests
If someone has a dementia diagnosis, this does not necessarily mean that they cannot continue to make their own decisions.
What if there is no lasting power of attorney in place?
If someone loses their mental capacity, and there is no lasting powers of attorney in place, it is possible to apply to the Court of Protection to be appointed as either a property and financial affairs deputy or a personal welfare deputy.
