Introduction

Many people make a Will and then assume that everything will be all right. If a family member suffers an accident or illness and becomes incapable of functioning normally, you will have to apply to the Court of Protection to be able to look after their affairs. This could cost as much as £1,500 initially and then up to £250 every year thereafter.
The purpose of an Lasting Power of Attorney (LPA) is to enable a person (the Donor) to decide whom they would like to deal with their affairs, if they ever become mentally or physically incapable. Without an LPA: if investments, property and moneys are in one name and that person becomes incapacitated, their partner does not assume the automatic right to deal with their affairs. The Court of Protection take control and appoint an attorney on your behalf, creating a large amount of extra 'red tape' and expense.
To set up an LPA: it must be created while (the Donor) is of sound mind. The attorney, (upon the Donor's mental or physical incapacity) can then put the LPA into effect. The Donor, by appointing the responsibility to administer his/her affairs to someone of their choosing beforehand, will prevent the Court of Protection getting involved, saving many thousands of pounds.

The Donor

Anyone can make an LPA and appoint whomever they wish to act as their Attorney if they are aged 18 or over and are of sound mind.

The Attorney(s)

You can appoint whoever you choose as your attorney(s), provided he/she is over 18 and not bankrupt when he/she signs the LPA. One or more attorneys can be appointed to act either jointly (together) or jointly and severally (independently of each other). A trust corporation, for example a bank, can also be an Attorney.
The Attorney(s) is someone who acts on behalf of the donor in financial matters. If the Attorney has general authority they are able to do almost anything that the donor could have done i.e. sign cheques, buy or sell shares, withdraw money, buy or sell houses.
The Attorney(s) must register the LPA with the Court of Protection only when they believe the Donor is no longer physically or mentally capable, to look after their own affairs.