Financial journalist and consumer champion Martin Lewis has issued a fresh call for UK adults, particularly those under pensionable age, to consider establishing a Lasting Power of Attorney (LPA). Lewis, founder of MoneySavingExpert.com, emphasised that these legal documents are not solely for the elderly or those with pre-existing health conditions, but rather a vital safeguard for anyone in the event of unforeseen illness, accident, or mental incapacity.
An LPA is a legal tool that allows an individual, known as the 'donor', to appoint one or more people, called 'attorneys', to make decisions on their behalf should they lose the mental capacity to do so themselves. Lewis highlighted that losing capacity can occur at any age due to a range of circumstances, from sudden accidents to unexpected illnesses, making the preparation of an LPA a proactive step for financial and personal protection.
There are two distinct types of LPA. The first is for Property and Financial Affairs, which grants attorneys the authority to manage bank accounts, pay bills, collect benefits, and even sell property. This type of LPA can be used as soon as it is registered, with the donor's permission, or only when mental capacity is lost. The second type is for Health and Welfare, covering decisions about medical treatment, daily care, and living arrangements, and can only be used once the donor has lost mental capacity.
The process of setting up an LPA involves completing forms and registering them with the Office of the Public Guardian. Each LPA currently costs £82 to register, though fee exemptions or reductions may be available for those on low incomes or certain benefits. Lewis underscored that while the upfront cost might seem a barrier, it is significantly less expensive and less stressful than the alternative should capacity be lost without an LPA in place.
Without an LPA, if an individual loses mental capacity, their loved ones would need to apply to the Court of Protection to become a 'deputy'. This process is generally more complex, time-consuming, and considerably more expensive than setting up an LPA, often involving legal fees running into thousands of pounds. Moreover, the Court of Protection may not appoint the person the individual would have chosen themselves, leading to potential distress and complications for families.