None of us like to think that a day may come when we are unable to look after our affairs, but it does happen. As a consequence, few people make provisions to organise their affairs should they become unable to look after them themselves during their lifetime. Most people are completely unaware of the huge costs and massive inconvenience involved if such a situation occurs without having made prior arrangements. Initially, all your assets are frozen including joint assets like bank accounts. Your nearest and dearest will then need to apply to the Office of the Public Guardian to appoint someone to act on your behalf every time a decision needs to be made. This can be time consuming, very expensive and is usually very stressful.

All this can be avoided by a document called a Lasting Power of Attorney (LPA). An LPA is a legal form which will allow you to choose someone else to manage your affairs on your behalf. That person is known as an attorney, and can be a friend, relative or a professional. More than one person can be chosen to act as an attorney on your behalf. All attorneys have to have regard to the Code of Practice and act in your best interests. It goes without saying that the person(s) chosen to act as attorney(s) should be honest, reliable and trustworthy since the power they will have is all encompassing.

Your LPA will be specific to you – you decide who will have the power to control your affairs and the precise limits of that power. For example you might want an attorney to make welfare decisions about your care but not make medical decisions on your behalf.

Before it can be used the LPA must be registered with the Office of the Public Guardian. There will be a fee for each LPA registered.

There are two types of LPA

· A property and affairs LPA will give powers to your chosen attorney(s) to make decisions about financial and property matters for you, such as selling your house or managing your bank account.

· A personal welfare LPA will give powers to your chosen attorney(s) to make decisions about your health and personal welfare, such as where you should live, day to day care or having medical treatment.

The difference between the two types of LPA is that a personal welfare LPA will only take effect when you lack capacity to make decisions. With a property and affairs LPA, the attorney can start using the LPA after it is registered, while you still have capacity. You can however, specify that the attorney(s) should only start managing your financial affairs if you lack capacity sometime in the future. If you want both LPAs, one for your property and affairs and another for your personal welfare, then you will need to complete two separate forms.

On 1st October 2007 the new system of LPAs replaced the existing Enduring Power of Attorney (EPA) system. Existing EPAs (registered or unregistered) will remain valid and in force provided they were signed and witnessed by that date. If you have already made an EPA and still have capacity, then you can use it as it stands or replace it with a new property and affairs LPA. You can of course also make a personal welfare LPA (which covers the health and welfare decisions not covered by an EPA).