Everything you need to know about The Lasting Power of Attorney Bill

We all want to live independently for as long as possible, but there may come a time when age or health factors mean that we can’t and others we trust need to help. However, this isn’t as easy as people think. Having a Lasting Power of Attorney in place is a way to ensure that things are made easier if the time arises where you do need someone to step in and help.

How does a Power of Attorney work?
If you become unable to make decisions yourself, or if you are physically unable to deal with your own affairs, it is not true that your family can automatically take control and do anything for you. This is why it is important to plan for the future.

A Power of Attorney is a legal document that enables someone to make decisions for you, or act on your behalf, if you no longer can.

You may consider making a Power of Attorney for a certain reason, for example, you may be in hospital following planned surgery and need someone to take control of any household bills while recovering. In such cases, you may look at making an Ordinary Power of Attorney, which applies to financial affairs only.

However, you may want a document in place to cover what happens if you are unable to manage your own affairs long term, and this is called a Lasting Power of Attorney (LPAs). This can covers decisions about your both your finances and health needs.

There are two types of Lasting Power of Attorney.
The first, relates to Property and Financial affairs, which covers anything money related such as dealing with property, bank accounts, investments, pensions, and even debts such as credit cards, utility bills and debts.

The second, relates to your Health and Welfare and this covers decisions about medical treatments and care arrangements, including where a person should live.

LPAs replaced the former Enduring Powers of Attorney in 2007. Existing EPAs made prior to the cut of date still remain valid but will only deal with financial decisions.

All about The Lasting Power of Attorney Bill
The Lasting Power of Attorney Bill was announced in May 2022 and aims to simplify entering into Lasting Power of Attorney, while introducing new safeguards to protect against fraud and abuse. The main features of The Lasting Power of Attorney Bill include the following:

• Bringing in a new digital application process which the Ministry of Justice says will reduce errors and speed up registrations. This will also align the process with others, such as applying for a divorce.
• The current system that relies on paper-based methods will continue to operate, as not everyone has access to technology.
• New identification checks would require official documents or information for a strengthened verification process
• It is a complex process to object to an LPA. The bill will bring a single route for all objections to improve clarity.

During the legislation process, the bill succeeded in passing its second reading in the Houses of Parliament in December 2022. As of February 2023, the next stage is for a committee of MPs to scrutinise the bill.

Navigating the complex field of attorney
If you are considering entering into a Lasting Power of Attorney, it is recommended that you seek advice from a Solicitor to ensure that that the forms are completed correctly and that you are protected as best as possible.

While registering the LPA with the Office of the Public Guardian requires a fee, individuals with low income or specific benefits may be eligible for discounts. It’s worth noting that Lasting Powers of Attorney are among the most crucial legal documents that an individual can possess.

The wills, probate and trusts team at our law firm in Sheffield are experts in this field and happy to offer further advice so you can seek an arrangement tailored to your family and guaranteed to give you peace of mind.

For more information contact Keeley Guy on 01302 341 414 or by email to keeley@taylorbracewell.co.uk