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What is a Power of Attorney (POA)?
A Power of Attorney (POA) is a legal document that lets someone else make decisions for you. These decisions can be about your money, your health, or legal issues. It is very important to have a POA, especially if you lose the ability to make decisions for yourself because of illness or old age. Having someone you trust to step in and make decisions can save a lot of trouble later on.
Setting up a Power of Attorney goes well with writing a will. While a will takes care of what happens after you die, a POA takes care of things while you’re still alive but need help. This way, all parts of your future are protected, and your wishes will be followed.
At Bicesterwills, we also offer will writing services to make sure all your future plans are in place. Learn more about how we can help you.
Understanding Power of Attorney
A Power of Attorney is really important if you’re worried about losing the ability to make decisions for yourself. This could happen because of sickness or getting older. Without a POA, your family or friends might have to ask the court for permission to make choices for you, which can take a long time and be stressful.
By setting up a POA, you can choose someone you trust to handle your decisions. This person will make choices about your health, money, and other important things based on what you want. A POA makes sure your future is safe, and it helps take the worry away from you and your loved ones.
Why is a Power of Attorney Important?
Protecting Your Future
A Power of Attorney (POA) is very important because it lets someone you trust make decisions for you if you can’t do it yourself. They can help with things like your health, money, or legal matters. Without a POA, these decisions might be delayed, which can cause problems for you and your family. By picking someone now, you make sure that your wishes will be followed, even if you’re unable to speak for yourself.
Avoiding Complications
If you don’t have a Power of Attorney, your family might have to go to court to get permission to make decisions for you. This can be time-consuming and expensive. It also means that important things like paying bills or making healthcare choices might be delayed, adding more stress during a difficult time. By having a POA, you make sure things are taken care of quickly and without hassle.
Bicesterwills offers expert probate services to help your family manage legal issues easily. Contact us to find out how we can assist.
How to Set Up a Power of Attorney
The Step-by-Step Process
Setting up a Power of Attorney (POA) is easier than it seems. Follow these steps to get it done:
Decide Which Type of LPA You Need
There are two types of Lasting Power of Attorney (LPA) in the UK: one for health and welfare and one for property and financial affairs. You can choose one or both, depending on what decisions you need someone to make for you.
Appoint Attorneys and Replacement Attorneys
You need to pick someone to be your attorney, which means they will make decisions for you. Choose someone you trust completely, like a family member or friend. You can also have more than one attorney and decide if they should make decisions together or on their own. It’s smart to pick a replacement attorney just in case the first one can’t do the job later on.
Complete the LPA Forms
Once you have chosen your attorney, you will need to fill out the official LPA forms. You can get these forms from the Office of the Public Guardian (OPG). These forms ask for your personal details, who your attorneys are, and what decisions they will make. Make sure to fill out everything correctly, or you might need to redo it later.
Register Your LPA
After you fill out the forms, you need to register them with the Office of the Public Guardian (OPG). The LPA won’t work until it is registered, so this step is very important. The registration process can take a few weeks, so it’s best to do this ahead of time.
Notify Relevant Parties
Once your LPA is registered, make sure to tell people who need to know, like your bank or your doctor. This will help them understand who can make decisions for you if it becomes necessary.
Store Your LPA Safely
Keep your LPA forms in a safe place. You should also give a copy to your attorney so they have it when they need it. Make sure the original documents are easy to find when needed.
Do I Need a Solicitor to Set Up a Lasting Power of Attorney?
The Benefits of Using a Solicitor
While you can set up a Lasting Power of Attorney (LPA) by yourself, using a solicitor can make things easier. A solicitor will guide you through the process and make sure that everything is done correctly. They can help you avoid mistakes, like filling out the forms wrong or missing important details, which could delay the process or make the LPA invalid.
Solicitors also give advice that fits your situation. For example, they can help you decide who should be your attorney and what powers they should have. If your situation is complicated, like having lots of assets or many people involved, a solicitor can make sure everything is handled properly.
The Risks of DIY LPAs
Doing the LPA forms yourself might seem easy, but there are risks. A common problem is making mistakes on the forms, which can cause delays or even make the LPA invalid. Also, without legal advice, you might misunderstand the process or forget something important. This is why using a solicitor can be a good idea—they help you avoid these problems.
How Much Does it Cost to Create a Lasting Power of Attorney?
Understanding the Costs
Setting up a Lasting Power of Attorney (LPA) has some costs. These can be different depending on whether you do it yourself or get help from a solicitor.
Solicitor Fees
If you use a solicitor, you’ll need to pay for their services. Solicitor fees usually range from £400 to £1,000. The price depends on how complicated your situation is and if you need help with both types of LPA—health and welfare and property and financial affairs. While it may seem expensive, a solicitor’s help can make sure everything is done right, which can save money and trouble later on.
Registration Fees
Besides solicitor fees, you’ll also need to pay a registration fee to the Office of the Public Guardian (OPG). It costs £82 per LPA. If you set up both types of LPA, it will cost £164. If you have a low income or receive certain benefits, you might get a reduction or not have to pay the fee at all.
Additional Costs
There could be other costs depending on what you need. For example, you might need extra certified copies of the LPA for banks or doctors. Some people also choose to have the LPA witnessed by a professional, which could add to the cost. If there are mistakes on the forms, there might be extra fees to fix them.
Factors That Affect the Cost of a Power of Attorney
Complexity of Your Situation
How complicated your situation is can affect how much it costs to set up a Power of Attorney (POA). If you have a large estate or complicated family matters, you might need more detailed legal advice. This could increase solicitor fees. For example, if you have a lot of assets or need help managing family disagreements, you’ll likely need extra guidance from a solicitor.
Solicitor Services
Solicitor fees can vary based on the service they offer. Some solicitors charge fixed fees, which means you know exactly how much you’ll pay. This can help you budget better. Others might charge by the hour, which could get more expensive if your situation takes a lot of time to figure out. It’s important to check different options and see which one works best for you. Picking a solicitor with experience in LPAs can give you peace of mind, even if it costs a bit more.
Ways to Save Money When Setting Up a Power of Attorney
Finding Affordable Solicitor Services
One way to save money on setting up a Power of Attorney (POA) is to find a solicitor who offers fixed-fee packages. This way, you know how much it will cost from the start. Some solicitors also offer online services, which can be cheaper because they don’t need as much face-to-face time. It’s a good idea to compare prices from different law firms to make sure you’re getting the best deal.
Government Help and Fee Waivers
If you are on a low income or receiving certain benefits, the government might help with the cost of registering your Power of Attorney. You could get a 50% discount on the registration fee or not have to pay at all. If you are getting income support, universal credit, or pension credit, you might qualify for this help. Make sure to check if you are eligible, as it can save you a lot of money.
Who Should You Choose as Your Attorney?
What to Consider
Picking the right person to be your attorney is one of the most important steps when setting up a Power of Attorney (POA). They will be making big decisions for you, so you need to choose carefully.
Trustworthiness and Reliability
The most crucial thing is to select someone trustworthy. This person will have a lot of power to make decisions for you, so you need to make sure they will always act in your best interest. Think about choosing a close family member, a trusted friend, or even a professional who knows you well and understands your values.
Experience with Finances
If your Power of Attorney will cover your money and property, it’s a good idea to pick someone who knows how to handle finances. They don’t need to be an expert, but they should be comfortable with things like paying bills, managing accounts, and making financial decisions. This helps make sure your money is managed properly.
Appointing Replacement Attorneys
It’s smart to name a replacement attorney in case the first one can’t do the job later. This provides a backup, making sure that someone you trust is always there to handle your affairs if needed. A replacement attorney steps in when the first person can’t, which adds an extra layer of protection.
How Should Your Attorney Make Decisions?
Acting in Your Best Interests
Your attorney must always make decisions that are best for you. They should think about your wishes and values when making choices, even if they can’t ask you directly. The person you choose should understand what is important to you so they can make the right decisions for your health, money, and personal matters.
Following the Rules
Attorneys must follow the rules set by the Mental Capacity Act. This law tells them what they can and can’t do when making decisions for you. They can only make decisions that your Lasting Power of Attorney (LPA) allows. If they break these rules, they could face legal trouble. Following the law protects your rights and ensures that all decisions are made the right way.
What Happens If You Do Not Have a Power of Attorney?
Consequences for You and Your Family
If you don’t have a Power of Attorney (POA) and you lose the ability to make decisions, your family might have to go to court to get permission to handle your affairs. This approach can be time-consuming and expensive. The court will choose someone to manage your affairs, and this person might not be who you would have wanted. This can cause a lot of stress in an already difficult situation.
Without a POA, important things like paying bills or making healthcare decisions could be delayed because the person chosen by the court might need to get permission first. This is why it’s smart to plan ahead and set up a POA. It’s also important to think about inheritance tax planning so your estate is passed down smoothly and without unnecessary costs.
Bicesterwills can help you with inheritance tax planning and setting up your Power of Attorney. Contact us to safeguard your future today.
Commonly Asked Questions About Power of Attorney
How Long Does it Take to Register an LPA?
Registering a Lasting Power of Attorney (LPA) usually takes 8 to 10 weeks with the Office of the Public Guardian (OPG). This time is needed for the OPG to check that all the forms are filled out correctly. If there are mistakes or if someone objects to the LPA, it might take longer. To avoid delays, it’s best to double-check everything before sending the forms.
Can You Change or Cancel an LPA?
Yes, you can change or cancel your Lasting Power of Attorney (LPA) at any time, as long as you still have the ability to make decisions. This might happen if your circumstances change, like if your attorney is no longer able to act for you. To make changes, it’s a good idea to talk to a solicitor, who can help you with the legal process.
What Happens If My Attorney Loses Capacity?
If your attorney can no longer act for you because they lose capacity, you’ll need to have a replacement attorney step in. This is why it’s important to name a backup attorney when setting up your LPA. If you don’t have a replacement attorney, you might need to set up a new LPA, or a court might appoint someone to take over.
Other Common Questions
Some people wonder if an LPA works in other countries or how much it costs to register one. LPAs made in England and Wales might not be valid in other countries, so you should check local laws if you have property abroad. The registration fee is £82 per LPA. Also, you can name more than one attorney, and they can either make decisions together or separately, depending on what you prefer.
Final Thoughts: Making the Right Choice for Your Future
Setting up a Power of Attorney is one of the best ways to make sure your future is secure. It helps protect you if you ever lose the ability to make decisions and makes sure that someone you trust can step in to help. It also takes the stress off your loved ones, who might have to go through a difficult legal process if there is no POA in place.
Getting advice from a professional is a good idea to make sure everything is done right. You should also think about care planning services to help you make decisions about long-term care.
Bicesterwills can help you with care planning and setting up your Power of Attorney. Contact us today to start planning for your future.
