Record-breaking numbers of applications have surged for lasting power of attorney, indicating a growing trend in assuming responsibility for the financial affairs of family members.
According to government data, the past year witnessed over one million registrations of lasting power of attorney (LPA), marking the highest annual tally ever recorded, with a notable 37% year-on-year rise. The significant rise is likely due to a backlog post-pandemic.
Legal professionals suggest that introducing proposals to an online platform might further increase registrations. However, they also emphasise the potential risks, warning that such a move could leave individuals vulnerable to exploitation.
What is a Lasting Power of Attorney?
A lasting power of attorney (LPA) is chosen to help with financial and medical decisions in the case of reduced capacity.
An LPA grants designated family members or friends the authority to oversee your affairs in the event of mental incapacity. For example, if you encounter conditions like dementia or physical ailments that impact your ability to handle financial matters, an LPA enables you to designate trusted individuals to assist with financial decisions.
There are two types of LPA: one for health and welfare, addressing medical concerns, and another for property and financial affairs, focusing on managing monetary issues.
If you possess mental and physical capacity, you maintain authority over your affairs and retain the ability to independently make decisions. Nevertheless, in situations where assistance is needed, you have the option to seek support from your appointed attorneys.
Why do I need a Lasting Power of Attorney?
In the absence of an LPA, if a family member loses mental capacity, there are often limited options available. In some cases, nothing can be done for them, and in others, the state may intervene. You might even find yourself needing to go to court to gain control over their financial affairs.
Applying for lasting power of attorney can be done through the Gov.uk website. You’ll need to fill out the necessary forms for health and/or financial affairs, but keep in mind, they must be printed, signed by the individual involved, their chosen attorneys, and witnesses before being sent to the Office of the Public Guardian for registration. The registration fee is £82.
How can DMA Law help?
While some individuals handle the LPA application process independently, many opt for legal assistance for ease and peace of mind – this is where we can help.
By creating Lasting Powers of Attorney, you allow trusted family members or friends to make decisions with clear instructions on managing your affairs. While none of us can predict the future, the Life Planning team at DMA Law can help ensure you have comprehensive life planning in place for unforeseen circumstances.
Reach out to us to learn more about how Lasting Powers of Attorney can benefit you and your loved ones. Contact us via our online form or call your nearest DMA Law office.
