Elderly client service articles

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10 August 2010

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23 June 2010

Budget Summary 2010 | For private individuals
26 March 2010

Budget 2009 summary for individuals
22 April 2009

Take steps now to avoid hefty inheritance tax bills
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Statutory Wills
10 April 2009

Lasting Powers of Attorney (LPA)

10 April 2009



Since October 2007, the only way to ensure that your family can deal with your assets is through executing an LPA.

There are two different types of LPA; one which deals with property and financial affairs and one which deals with personal welfare. The person making the LPA (the donor) can choose whether they wish to make either or both types of LPA.

The property and affairs LPA can be used to appoint an attorney or attorneys to make decisions about finances, for example operating the donor's bank accounts, making investment decisions, signing tax returns and buying and selling property.

The personal welfare LPAs allow an attorney to make decisions about the donor's welfare and health, i.e. on issues such as where the donor will live and what care or medical treatment they should receive. The donor of the LPA can also authorise the attorney to give or refuse consent to life sustaining medical treatment. The attorney can only act under this personal welfare power if the donor has lost the mental capacity to make these decisions themselves.

The donor can appoint one or more attorneys, and if they wish can appoint the attorneys to act together for some decisions and together and independently for others. Different attorneys for the property and affairs LPA and the personal welfare LPA can be appointed and they can appoint replacement attorneys to take the place of the original attorneys should the need arise.

Both forms of LPA allow the donor to place restrictions, conditions and guidance on the attorney which can allow a donor to be much more specific in their instructions than under the EPA system. A donor should carefully consider the scope of the power given to his attorney, and should discuss this with the prospective attorney(s) and seek advice if needed.

It is therefore vital that anybody looking to create an LPA, in either form, seek expert legal advice before doing so. While many people might consider the task of creating an LPA too time consuming and expensive, it would be wise to think seriously about the security the power might provide you with. Unfortunately, there are very few alternatives. Indeed, if you lose your mental capacity and do not have a power of attorney in place, an application to the Court will need to be made on your behalf for someone to be appointed as your deputy.

For more details, please contact our elderly client specialist Camilla James on 01753 279031, complete the online enquiry form or email elderlaw@bpcollins.co.uk.