Lasting Power of Attorney (LPA)

Mental Capacity Act 2005

If someone is unable to make decisions about money, health and other matters they may need help to make these decisions or they may need to appoint someone to make decisions or take action on their behalf.  The Mental Capacity Act 2005 has made provision for people to choose someone to manage not only their finances and property should they become incapable, but also to make health and welfare decisions on their behalf. People with no one to act for them will also be able to leave instructions for their care under the new provisions.

They will be able to do this through a Lasting power of attorney (LPA). LPAs will replace Enduring Powers of Attorney (EPA’s) in 2007, when the Mental Capacity Act comes into force, although EPAs made before this time will still be valid.

You may want to read more about the Mental Capacity Act and how it will affect you in the Department of Constitutional affair booklet
Making decisions about your health, welfare and finances… Who decides when you can’t?

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) enables you to appoint one or more people who you trust to manage your affairs should this become necessary.  The role of the LPA may be to make decisions about your health and personal welfare that are in your best interests  such as;  where to live; the  provision of  day-to day-care;  medical treatment and / or  managing your financial affairs.

There are two types of LPA
1. A personal welfare LPA   can make decisions about both health and personal welfare, such as where to live, day-to day-care or having medical treatment.

2. A property and affairs LPA can make decisions about finances, such as managing a bank account, the sale of your property

Why is Making an LPA Important?

Making an Lasting Power of Attorney is very important, as it will simplify your day to day money management as dementia progresses, and you will avoid the more complicated and costly business of Court of Protection Receivership.

Someone who has a diagnosis of dementia can still make an Lasting Power of Attorney, providing they have the capacity to understand the implications of this process. A doctor's advice should be sought if there is any doubt about this.

For further information please see
Making decisions - A guide for family, friend and other unpaid carers

To download the forms and read further information guides
http://www.publicguardian.gov.uk/formsdocuments/forms.htm

Enduring Power of Attorney (EPA)

Existing EPA’s will still be valid and can be registered after the Mental Capacity Act comes into force although new ones cannot be drawn up after this time.  Contact the Office of the Public Guardian :

What is Court of Protection Receivership?

Receivership becomes necessary if someone who has not made an Lasting Power of Attorney becomes mentally incapable of managing their financial affairs. Acting as a receiver for somebody is more complex than acting as an attorney.

What is Appointeeship?

Appointeeship is used when certain criteria have been met:

• A person has become mentally incapacitated
• Their income is purely from benefits
• They do not have an EPA or LPA

An Appointee can deal with benefits claims and payments and by doing so, avoid the need to assign a Receiver.

The Department of Works and Pensions must satisfy itself that the person needing the help of an Appointee is unable to manage their own affairs, for example by visiting and if necessary getting medical evidence.  The suitability of the person who has applied to act as Appointee must also be checked.
To find out about becoming an Appointee telephone the Department of Work and Pensions:

• If the person concerned is receiving Retirement Pension or Pension Credit, contact 0845 6060265
• If the person concerned is receiving Attendance Allowance only, contact 0845 7123456

A copy of the leaflet on Appointeeship GL21 can be ordered from either of the numbers above.

Further Information

Alzheimer's Society have a factsheet that gives detailed information about Enduring power of attorney, lasting powers of attorney and receivership; in addition the Age Concern factsheet Legal arrangements for managing your finances also includes information about appointeeship.

Further information, and the necessary forms for LPA and receivership, can be downloaded free from the Office of the Public Guardian .

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