You may get to the stage in life where you are either unable or unwilling to deal with your own affairs. You can appoint someone of your choosing to act as your Attorney in this situation and this can be more than one individual depending on your personal circumstances.
If you do not have a Lasting Power of Attorney then the Court of Protection will decide who to appoint to manage your property and affairs (your ‘Deputy’) if you are unable to do so yourself, which may be someone you would not choose. The Court procedure is lengthy and expensive, see the costs comparison below. If a Deputy is appointed they have to file annual accounts with the Court and have to apply to the Court to do certain tasks, such as sell your house.
A Lasting Power of Attorney ensures that the people you choose would make decisions for you and manage your affairs and is far more cost effective.
Cost comparison: LPA vs Court of Protection
Lasting Power of Attorney
Court of Protection
|Legal Fees (for 1 LPA) – £350.00||Solicitor’s allowable fees – £850.00|
|Plus VAT – £70.00||Plus VAT – £170.00|
|Registration Fee – £110.00||Application Fee – £400.00|
|Medical Fee (Approx) – £120.00|
|Bond Premium (differs in every case) – Variable|
|Total – £530.00||Total (at least) – £1,540.00|
There are two Lasting Powers of Attorney (LPA), one which relates to financial decisions and the other to health decisions.
For most people it is best to have both LPAs in place.
The financial LPA deals with decisions about buying and selling property, investments, bank accounts and the day to day running of your financial affairs and can include the making of gifts to other people.
The health LPA covers decisions about medical treatment, what you eat and wear, where you live and what you do with your day. It includes a section in which you have to decide whether you want your attorney to make decisions about life sustaining treatment. If you have any views on life sustaining treatment you can give your attorneys guidance about this.
You can appoint anyone you wish provided they are over 18 and it is someone that you are confident you can trust. You can appoint one attorney or more than one and we can give you further guidance about this if required, including replacement attorneys.
Only when the LPAs have been registered with the Office of the Public Guardian and we recommend that they are both registered once they have been signed.
The health LPA can only be used by your attorneys when you are unable to make the particular decision in question yourself.
The financial LPA can be used from when it is registered, unless you put in a restriction preventing its use before you lose capacity.
Your Attorneys can:
- Sell your house
- Operate your bank account
- Look after your savings
- Pay your bills
- Make gifts, subject to certain limits
- Make investments
Or anything else you would normally do for yourself unless you include a restriction, for example, not to buy or sell any property on your behalf.
Your Attorneys can decide:
- Where you live
- What you eat
- What clothes you wear
- Who visits you
- What medical treatment you have
Or any other decisions of a similar kind which relate to your health and general well being, unless you include any restrictions.
No, if someone you know has lost their mental capacity you will need to make an application to the Court of Protection which is a government department and where the decision about appointing someone (a Deputy) to look after their financial affairs.
Financial or Health & Welfare LPA (each) – £350 plus VAT (£420)
Both LPAs – £550 plus VAT (£660)
Couple making one LPA each – £550 plus VAT (£660)
Couple making both LPAs – £750 plus VAT (£900)
Individual making a Will and one Lasting Power of Attorney (LPA) – £500 plus VAT (£600)
Individual making a Will and two LPAs – £700 plus VAT (£840)
Couple making Wills and one LPA each – £800 plus VAT (£960)
Couple making Wills and two LPAs – £1,000 plus VAT (£1,200)
To be effective, each Lasting Power of Attorney has to be registered with the Office of the Public Guardian which charges £82 per LPA.