Lasting Power of Attorney: why you need one and how to set it up

There are two types of LPA. The Property and Financial Affairs LPA allows your attorney to manage your bank accounts, pay bills, invest money, buy and sell property, and handle your financial commitments on your behalf. This can be used while you still have mental capacity if you give permission, or only when you lose capacity if you prefer. The Health and Welfare LPA allows your attorney to make decisions about your medical care, daily routine, and life-sustaining treatment if you cannot make these decisions yourself. The Health and Welfare LPA can only be used when you have lost mental capacity. You can set up one or both types. Both must be registered with the Office of the Public Guardian before they can be used, and registration takes approximately 8-10 weeks.

You can set up an LPA online via the Office of the Public Guardian website, by post using paper forms, or through a solicitor. The online service is the most straightforward and cost-effective. You will need to: choose your attorney(s) - ideally one primary and one replacement in case the first cannot act; decide whether to allow your attorney to use the LPA while you still have capacity (for the Property LPA); consider whether to place restrictions or conditions on your attorney's powers; and complete the LPA form with details of yourself and your attorney. Both you and your attorney must sign the LPA. Then register it with the Office of the Public Guardian, paying the registration fee of GBP82 per LPA (or GBP41 if you are on qualifying benefits). Registration takes 8-10 weeks.

Your attorney has enormous power over your financial wellbeing, so choosing the right person(s) is critical. Choose someone you trust absolutely - they will have access to your bank accounts, can sell property, and can make significant financial decisions on your behalf. Choose someone who is financially organised and unlikely to be vulnerable to pressure from others. Consider naming a professional (such as a solicitor) as your attorney if you have no suitable family member or friend. You can name multiple attorneys, who can act jointly (meaning they must all agree on every decision) or jointly and severally (meaning they can act together or independently, which is more practical). Include replacement attorneys in case your primary attorney can no longer act. Your attorney must always act in your best interests and follow the principles set out in the Mental Capacity Act.