Former Pensions Minister Steve Webb has publicly disclosed that he has already granted his children Lasting Power of Attorney (LPA) over his finances, despite being in good health at the age of 60. Mr Webb, who served as a minister in the coalition government, emphasised the critical importance of planning for a future where one might no longer be able to make their own decisions, even if that prospect seems distant.
An LPA is a legal document that allows an individual, referred to as the 'donor', to appoint one or more people, known as 'attorneys', to make decisions on their behalf. There are two types: one for property and financial affairs, and another for health and welfare. Mr Webb's proactive step highlights a growing awareness among experts about the necessity of preparing for potential mental incapacity, rather than waiting until it becomes an immediate concern.
The decision to secure an LPA early can prevent significant stress and financial complications for families. Without an LPA in place, if an individual loses mental capacity, their family would need to apply to the Court of Protection to become a 'deputy'. This process is often lengthy, complex, and can be considerably more expensive than setting up an LPA. The application fee for an LPA is currently £82, although some individuals may be eligible for a discount or exemption.
The Office of the Public Guardian (OPG) is responsible for registering LPAs in England and Wales. The registration process can take several months, further underscoring the benefit of initiating it well in advance. Mr Webb's personal experience serves as a powerful reminder that mental capacity can be lost at any age due to various factors, including illness or accident, making early preparation a prudent measure for all UK adults.
For UK households, understanding and establishing an LPA can offer peace of mind, ensuring that their wishes are respected and their financial affairs can be managed smoothly by trusted individuals should the need arise. It also avoids potential disputes among family members during an already difficult time.
Source: Steve Webb