The number of people in the UK putting Lasting Power of Attorney (LPA) arrangements in place has continued to increase between March and August 2020, with more than 200,000 submitted in the period.
The data was published by the Ministry of Justice (MoJ), finding that the increase in LPAs became much sharper in 2015, with more publicity around the agreements and the introduction of a digital process to make it easier to access.
What do I need to know when setting up an LPA?
Lasting powers of attorney (LPA) can be set up in respect of personal health and welfare, or property and financial affairs, or both. In both cases, one or more attorneys can be appointed, as well as replacement attorneys.
If you do not have an LPA set up, then a Court of Protection application could be the automatic option, but this could be a lengthy and expensive process.
The number of people that create an LPA has increased significantly in the last few years, with recent data showing that the figure has tripled in the past five years.
LPAs can be set up with a replacement attorney, and not having one at the beginning of the process can cause complications further down the line. Failing to appoint a replacement would mean that if an original attorney became bankrupt, unwell, refused to act or died, then only the remaining attorney or attorneys would be continuing to act.
Should I consider building in safeguards?
Building in safeguards and protections is essential when setting up an LPA. These can be things such as bans on the sale of property or family heirlooms, as well as restrictions on gifts and loans.
While some individuals may be reluctant to include these safeguards, they can ensure long-term protection, particularly when an LPA is set up well before it is needed, and expert advice can assist individuals in tailoring the LPA to their requirements.
For help and advice relating to powers of attorney, contact our expert team today.