The Importance Of Lasting Powers Of Attorney
Planning for the future is one of the most important steps you can take to protect yourself and your loved ones. A Lasting Power of Attorney (LPA) ensures that someone you trust can make important financial or health decisions on your behalf if you lose the ability to do so. In this article, we will cover the importance of Lasting Powers of Attorney, how they work, and why putting them in place early can provide peace of mind and avoid unnecessary legal complications.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document that allows someone you trust—known as your “attorney”—to make decisions on your behalf in the event you become unable to do so. There are two types of LPAs:
- Property and Financial Affairs – This allows your attorney to manage your finances, including paying bills, handling investments, or selling property. This can be used both while you still have capacity (with your consent) and if you lose capacity in the future.
- Health and Welfare – This grants your attorney the authority to make decisions regarding your health care, medical treatment, and living and day-to-day care arrangements, ensuring your well-being is in trusted hands. Unlike the financial LPA, this can only be used if you lose mental capacity.
It is important to note that Lasting powers of Attorney can be made from the age of 18 years. It is part of future planning because it allows you to decide who will make decisions for you, what decisions they can make, and how they should act if you’re unable to decide for yourself. Here at McHale’s we believe that starting early will make you more prepared in life.
Why You Need Lasting Powers of Attorney
Many people fail to put an LPA in place until it’s too late. This oversight can create serious consequences. If you lose the ability to manage your affairs due to illness or injury and you don’t have an LPA, your loved ones may be forced to go through the time-consuming and costly process of applying to the court of protection for a deputyship order. This can lead to unnecessary stress during what is already a difficult time.
An LPA is like an insurance policy and it gives you peace of mind, knowing that someone you trust will step in to handle your affairs as you would want, without the burden of lengthy legal processes.
Common Myths About LPAs
- “I’m too young to need an LPA.”
Mental capacity can be lost due to accidents or illness at any age. An LPA is not just for the elderly – it’s a safeguard for anyone. - “My family can automatically make decisions for me.”
Legally, family members do not have automatic rights to manage your finances or make medical decisions unless an LPA is in place. - “LPAs and Wills do the same thing.”
A Will dictates what happens after your death, while an LPA ensures your affairs are managed while you are still alive but unable to make decisions.
LPAs vs. Wills: Understanding Their Different Roles
While both are important aspects of estate planning, Wills and LPAs serve entirely different purposes:
- A Will comes into effect only after your death, ensuring your assets are distributed as per your wishes.
- An LPA is used during your lifetime if you lose mental capacity, allowing someone you trust to make important decisions on your behalf.
Having both a Will and an LPA in place provides comprehensive protection for both your estate and your personal welfare.
The Role of Legal Advice
In the 2024/25 tax year, 48,945 Lasting Power of Attorney (LPA) applications were rejected, and provisional figures for 2025/26 show 39,781 rejections. These were predominantly due to avoidable mistakes on the forms, such as missing signatures, signing in the wrong sequence, or incorrect dates. Therefore, we strongly advise that you seek expert legal advice when creating your LPAs to ensure mistakes are avoided and that your wishes are accurately recorded. This is particularly important for those with complex financial situations or specific health care preferences.
Don’t Wait Until It’s Too Late
The importance of having a Lasting Power of Attorney cannot be overstated. It’s crucial to plan for the unexpected before it happens. Taking the time now to create and register your LPA will save you and your loved ones unnecessary stress in the future, ensuring that your finances and health are managed according to your wishes.
If you haven’t already arranged your Lasting Power of Attorney, we strongly recommend that you seek legal advice as soon as possible. Our Private Client team at McHale & Co are here to assist with every step of the process, providing the expert guidance you need to ensure your future is secure.
But what if your circumstances change and you want to alter my Lasting Power of Attorney when it is registered
If you need to make changes after your Lasting Powers of Attorney (LPAs) have been registered, such as replacing your primary attorney or appointing a new attorney, you cannot simply amend the existing documents. Instead, you will need to create and register new LPAs.
This involves revoking your existing LPAs by submitting a Deed of Revocation to the Office of the Public Guardian before registering the new LPAs with your chosen attorneys.
At McHale & Co Solicitors, we can manage the entire process on your behalf, ensuring everything is completed accurately and efficiently, giving you peace of mind and helping to avoid unnecessary delays or errors.
If you would like further advice on LPAs or advice on registering LPAs, please don’t hesitate to contact us today on 0161 928 3848 or mch@mchaleandco.co.uk to discuss your best options.
