What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that you can use to appoint someone you trust to handle your financial affairs, during your lifetime. The person authorised to do this is called the 'attorney' and the person making the LPA is called the 'donor'.

It is important to take care whom you choose as attorneys, given the control they will have over your assets. An attorney should not make decisions about anything other than financial matters. They should not control the donor’s behaviour or choice in any way. It is quite usual for a donor to appoint professional advisors as well as members of their own family.

An LPA can be created at any time. This does not mean that the donor immediately foregoes the right to carry on dealing with their own affairs. They can go on doing this for as long as they are able or wish to do so. The important thing is that the LPA is ready to use in the future, should the donor become mentally incapable or feel they can no longer cope with managing things themselves. A mentally capable donor can cancel an LPA at any time.

If you become unable to manage your own affairs and do not have an LPA, a court order is needed to appoint someone not of your choosing to manage your affairs and this is a far more costly procedure.