The Lasting Power of Attorney (LPA) is a crucial legal document that ensures trust in managing finances, property, and health decisions. However, the government is raising the registration fee for an LPA by 12%, from £82 to £92, starting 17 November.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a document whereby an individual (known as the donor) over the age of eighteen who has capacity, can choose who they wish to appoint to help them manage their financial and property decisions or health and welfare decisions should they become mentally or physically incapacitated and unable to make these decisions themselves.
The people who are appointed under the LPA are known as attorneys.
There are two types of Lasting Powers of Attorney:
- Health and Welfare Matters
- Property and Financial Affairs
What You Need to Know About the Fee Increase
The increase applies to the two separate types of LPA:
- Property and Financial Affairs LPA
- Health and Welfare LPA
If you are 18 years of age or older and mentally capable, you can receive one or both. It’s crucial to keep in mind, though, that registering an LPA does not guarantee that it will take effect immediately. Only if and when you lose the ability to act independently will that occur.
Attorneys are supposed to consult you if you still have some but not all of your capacity, but you are still free to take the initiative whenever you feel comfortable doing so.
After 8 years: Cost Increase and Available Financial Support
Regarding the increase in the cost of registering an LPA, a Ministry of Justice spokesperson states: “This is the first time the fee has been adjusted in eight years, and it remains well below the rate of inflation over this period.”
Anyone who struggles to pay or is worried about the expense can request for a discount or exemption. The increase will only be used to meet operating costs at the Office of the Public Guardian, which operates the program, which have increased in tandem with inflation, the Government notes.
“An LPA is one of the most important safeguards you can put in place to protect yourself and your loved ones, so we don’t want this increase in fees to put anyone off making an application,” says Kirsty Limacher, a legal adviser with the Association of Lifetime Lawyers.
It is crucial to know that assistance is available if you are concerned about the expense. Low-income individuals can request for a reduction, and those receiving specific means-tested benefits may be eligible for a full fee exemption.
Nobody should feel that their financial worries force them to neglect this essential legal protection.
Frequently asked questions:
Why is a Lasting Power of Attorney Important?
You can only make an LPA whilst you have the capacity to understand the nature and scope of the LPA. You must choose a person to provide a certificate to confirm that you can make an LPA.
It is also important to discuss all these matters with family and friends, particularly those whom you choose to appoint as your attorneys, whilst you can, so that your attorneys are well aware of your wishes if you do lose capacity.
If you do not have an LPA in place and lose mental capacity, an application must be made to the Court of Protection, which is a much more costly and time-consuming process.
Why should I make a Lasting Power of Attorney?
- You decide who deals with your financial affairs: It is entirely your decision who you appoint to be your attorneys, but you must be satisfied that they are trustworthy and capable of handling your personal or financial affairs.
- You provide guidance as to what you would like your attorneys to do on your behalf and provide details of where your assets are held: You can include any “preferences” and “instructions” in either of the LPAs you decide to make, to provide your attorneys with guidance. If you have included any instructions in your LPA’s then these MUST be followed by your attorney as these are binding.
- Your financial affairs are not held “in limbo” if no one has the authority to assist you should you become incapacitated: Your attorneys have the authority to speak on your behalf; this can be as simple as authorising utility bills to be addressed to another person.
- It is sound business practice – your staff can get paid and your business can continue: Your attorneys have the authority to manage your business accounts and make business decisions in your best interests and the best interests of the business.
- It is more cost and time-efficient than the alternative option: If you do not have a Lasting Power of Attorney and you do not have sufficient mental capacity to make a Lasting Power of Attorney, the alternative is to make an application to the Court of Protection to appoint a deputy to deal with your financial affairs. The Court decides who is appointed as your deputy. This may not be who you would choose. This process will take significantly longer than making a Lasting Power of Attorney and will cost more.
What LPA matters can we assist with?
- Provide you with in-depth advice concerning your Lasting Powers of Attorney
- Prepare your Lasting Powers of Attorney
- Provide you with a certificate of understanding
- Assess your entitlement to any reduction of the registration fee payable
- Register your Lasting Powers of Attorney with the Office of the Public Guardian
- Store your Lasting Powers of Attorney until they are required to be used
- Guide your Attorneys once your Lasting Powers of Attorney are required to be used
- Offer you a fixed fee for all work in relation to your Lasting Powers of Attorney
- Offer additional services for new and existing attorneys
Why should I choose Oakwood Solicitors?
Oakwood Solicitors Ltd can assist you through this process and provide you with the necessary advice. Our team has gained an excellent reputation amongst local organisations and their client base for delivering a personal and compassionate service.
As a firm, we pride ourselves on having a high standard of customer service and making all our current and potential clients feel at ease when making any decisions regarding their future wishes.
You will have a dedicated advisor who will work through the Lasting Powers of Attorney process with you from start to finish, assisting you in the event of any queries or issues you may have.
Your advisor will also continue to provide regular updates until your application has been completed. We will ensure the process is as stress-free and effortless as possible.
Further information:
Registering Lasting Power of Attorney? The cost will rise in November.
Lasting Powers of Attorney (LPA).
WHAT TO DO NEXT
If you are looking for support with your will or appointing a lasting power of attorney, get in touch today for a no-obligation consultation.
Choose one of the methods on the right-hand side of this page or call us on 0113 200 9720 to find out how we can help you.
Charlotte Bandawe is our Head of Wills and Probate department, leading a team of three other colleagues.
Charlotte is also a member of The Association of Lifetime Lawyers. View her Association For …
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