Setting up a Lasting Power of Attorney is one of those jobs that's easy to put off. It means thinking about a time when you might not be able to make your own decisions, and most of us would rather not. But it's also one of the kindest things you can do for the people you love, and the rules around it are being modernised right now. Here's what a Lasting Power of Attorney actually is, what it costs today, and what's changing, all in plain English.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that lets you, the "donor", choose one or more people you trust, your "attorneys", to help you make decisions or to make them on your behalf. It gives you more say over what happens to you if an accident or illness ever means you can't make decisions for yourself.

To make one, you need to be 18 or over and able to make your own decisions at the time you set it up. You don't have to live in the UK or be a British citizen. An LPA made this way is legally binding in England and Wales. Scotland and Northern Ireland have their own separate systems, so if you live there the process is different.

The two types

There are two types of LPA, and you can choose to make one or both:

• Health and welfare. This covers decisions about things like your daily routine, medical care, moving into a care home and life-sustaining treatment. It can only be used once you're no longer able to make those decisions yourself.
• Property and financial affairs. This covers money and property, for example managing a bank account, paying bills, collecting a pension or benefits, and selling your home. With your permission, it can be used as soon as it's registered.

What it costs and how long it takes

An LPA has to be registered with the Office of the Public Guardian before anyone can use it. Registering one LPA costs £92, so both types together come to £184. If you earn less than £12,000 a year you may be able to apply for a reduced fee, and if you're on certain benefits such as Income Support you might not have to pay at all.

Registration takes around 8 to 10 weeks if there are no mistakes on the form, so it's well worth getting the details right first time. If a small error does slip through, the Office of the Public Guardian may let you correct it and apply again within three months for £46. Before you register, you also send a short notice form to anyone you've named as a "person to notify", who then has three weeks to raise any concerns.

What's changing: the Powers of Attorney Act 2023

The way LPAs are made is being brought up to date. The Powers of Attorney Act 2023 received Royal Assent on 18 September 2023 and changes the Mental Capacity Act 2005, paving the way for a more modern service from the Office of the Public Guardian.

The headline changes are designed to make the process safer and simpler. For the first time, people will be able to apply completely online, on paper, or with a mix of the two. The Act also brings in identity checks for the people involved in an LPA, to guard against fraud and abuse, and it tidies up the objection process so anyone with a genuine concern can raise it directly with the Office of the Public Guardian.

Nobody is being forced online. A paper route is being kept for anyone who can't or would rather not use the internet. The new service is still being developed and tested and is being introduced in stages, so the exact steps you follow today may differ from those once it's fully in place.

What this means for you

If you already have an LPA, there's no need to worry. The current services remain available as usual, and the changes don't undo arrangements you've already made. If you've been meaning to set one up, you can still do so now in the usual way rather than waiting, and our estate planning team can walk you through it.

An LPA isn't only for older people or those who are unwell. Anyone can have an accident at any age, and without an LPA in place your family may have to apply to the Court of Protection to be appointed as a "deputy" before they can manage your affairs, which is usually a slower process. Putting an LPA in place while you're fit and well simply means the right people can step in smoothly if they ever need to.

If you'd like to talk through what a Lasting Power of Attorney would mean for you and your family, you can book a free consultation with us. No pressure, just a friendly chat.

This article is general information for England and Wales, not legal or financial advice, and the rules can change. Please seek personal advice about your own circumstances.