Lasting Power of Attorney
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Important Note: The cut-off to make an Enduring Power of Attorney was is the 1st October 2007. From 1st October 2007 you can no longer make an EPA and will have to make a Lasting Power of Attorney.
You can make a Lasting Power of Attorney Online in Minutes for £27.95 - this could cost up to £1,000 with solicitor. |
Under the Mental Capacity Act (2005) Enduring Power of Attorneys will be replaced by Lasting Power of Attorneys in October 2007 (not April 2007 as was originally announced).
On 1st October 2007 the Enduring Power of Attorney (EPA) became the Lasting Power of Attorney (LPA). The latter is more powerful and has more safeguards built in. Click here for details of the differences between the EPA and the LPA.
As well as replacing the EPA's use as a document to protect your PROPERTY AND AFFAIRS, (with the 'Lasting Power of Attorney - Property and Affairs' document), the introduction of the Lasting Power of Attorney also means the introduction of a SECOND document allowing you to specify somebody to look after your PERSONAL WELFARE (the 'Lasting Power of Attorney - Personal Welfare' document).
Everybody who makes a Will should also make a Lasting Power of Attorney.
A Lasting Power of Attorney (an 'LPA') is a document that you sign to appoint somebody to act for you should you for any reason become unable to manage your own affairs.
It's a powerful and fairly complex document
If you care enough about what happens to your assets after you die, you should care even more about keeping them safe whilst you are alive.
While a Will ensures that your estate is distributed according to your wishes when you die, a Lasting Power of Attorney protects your assets by authorising somebody chosen by you to deal with your affairs on your behalf (should you become unable to manage them yourself) whilst you are alive.
If you do not have a Lasting Power of Attorney, then if for any reason you suddenly become unable to manage your own affairs, e.g.
- You suffer an accident and are confined to bed or hospital
- You suffer a more serious accident which permanently incapacitates you
- You become mentally incapacitated as a result of old age or for some other reason
... then the only way that your financial affairs can be managed is by an application (by a relative or other person close to you) to the Court of Protection. This can take up to 10 months and cost up to £1,000 to process - during which time your finances could be seriously damaged - and the person authorised to handle your affairs on your behalf is not only unlikely to be who you would have chosen, but may even be a Court Official - who can (and will) charge every time he/she acts for you.
If you have a Lasting Power of Attorney, your chosen representatives can act for you straight away if you become unable to handle your own affairs, and within a few weeks if you become mentally incapacitated.
Note that you must be mentally capable to make an LPA. Therefore - just like a Will - if you don't have one then by the time you really need one it's too late.
How much does it cost and how do I make one?
The cost of a Lasting Power of Attorney can vary widely. Some solicitors are allegedly charging up to £1,000 although £300-£400 seems more the norm'.
You can make a Lasting Power of Attorney Online for just £27.95 - they even do the had work for you!
Why was the EPA considered better than the new Lasting Power of Attorney?
- The Enduring Power of Attorney has no need for compulsory registration, unlike the situation with the new Lasting Power of Attorney where there is a formal requirement to register this document prior to use.
- It is also almost certain that the cost of the Lasting Power of Attorney will be considerably higher due to extra admin' and paperwork involved. However You can make an LPA Online for £27.95 - the new Lasting Power could cost up to £1,000 with a solicitor
- Many people ONLY want the attorney to look after their financial affairs and NOT their medical and life well-being which will be the case with the new Lasting Power of Attorney.
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