The fear of losing control of your money is rightly momentous for many of us. Appointing someone you trust to manage your affairs should provide peace of mind – but the process to set up a Lasting Powers of Attorney (LPA) can be complicated, and it is important to make sure the paperwork is correct to avoid frustration and financial costs.
In the below article, Katrina Hurst, an experienced solicitor in our Private Client department at AFG, explains what a Lasting Power of Attorney is, what common errors are made, and what the consequences of an error in your LPA can be.
What is a Lasting Power of Attorney (LPA)?
An LPA is a legal document in which you give another person the legal powers to act and make decisions on your behalf. An LPA is important insurance for your future; if you ever lack the mental capacity to make important decisions for yourself, it will be the role of your appointed Attorney to do so.
If you do not have an LPA and you lose mental capacity, then your loved ones will not have the legal authority to make decisions about your health and finances. This means they would need to apply to the Court of Protection to be appointed as your deputy, which is a lengthy, costly, and complicated process.
Errors in LPAs and their Consequences
Data from 2023-2024 shows that 50,918 LPAs were rejected because they contained errors. All LPAs have to be registered with the Office of the Public Guardian, a government agency which helps people to stay in control of decisions about their health and finance and make important decisions for others who cannot decide for themselves.
If the Office of the Public Guardian (OPG) spot a mistake, they will return the forms back to you. Not only will you have to apply again but another registration fee will be payable. This also means that the LPA is not legally valid.
This error can delay the process when it is already taking an average of 2-3 months to register an LPA so that it can be used.
The most common mistakes made when writing an LPA:
- Signing and dating the forms in the wrong order – the donor (the person making the LPA) must sign first, then the certificate provider, then the Attorneys and then finally the person registering the LPA must sign again. Signing in a different order means it will be rejected by the OPG.
- Correcting mistakes – misspellings or incorrect information such as dates of birth is more common than you expect. If you make a written mistake on your LPA application form, you can correct it if you spot it before submitting it to the OPG. You can do this by ensuring that the person who made the mistake puts a line through it, corrects it clearly and puts their initials next to the correction. Do not use correction fluid; the OPG will reject any applications that uses this.
- Using the wrong witnesses – if you choose someone to witness your signature who is not eligible to do so, the LPA will be rejected. An example of an error in witness would be an Attorney witnessing a donor’s signature. This is because there is a conflict of interest, which would result in the rejection of the LPA.
- Contradictory requests – an example is a donor appointing an Attorney jointly and severally but then confirming that the Attorneys must make decisions together in the instruction section. If this makes the LPA unworkable, it will be rejected.
- Failing to provide full names – including middle names and not just initials.
Many common mistakes can be corrected if spotted before the application is sent to the OPG, which can prevent excess delays and unnecessary expenses.
Consequences of an error on an LPA could be:
- Delay in the registration process
- The LPA not being legally valid
- The OPG being unable to register the LPA at all
How can AFG Law help you avoid errors in an LPA:
At AFG Law, our Lasting Power of Attorney LPA solicitors can guide you through the process of setting up both Health and Welfare, and Property and Financial Affairs LPAs. We tailor each LPA to your specific needs, ensuring your wishes are protected and your affairs are managed securely.
As well as advising you on making an LPA that is best suited for you, we can provide expert guidance on:
- Registering an LPA
- Objecting to the registration of an LPA
- Suspicions about the Illegal use of an LPA
- Acting as professional attorneys
- Advice on ‘Enduring Power of Attorney’
- Court of Protection Deputyship applications
For professional guidance on all matters related to Lasting Power of Attorney, please get in touch with our team today via email at PrivateClientDept@afglaw.co.uk or speak to one of our experts on the phone at 01204 377600.