Understanding How Much is an LPA: Your Guide to Lasting Power of Attorney Costs

Thinking about a Lasting Power of Attorney (LPA) can feel a bit heavy, but it's a really smart move for your future. It's all about making sure your wishes are looked after if you can't make decisions yourself. You might be wondering, how much is LPA going to set me back? This guide breaks down the costs, from government fees to getting help, so you know exactly what to expect and can plan ahead.

Key Takeaways

• An LPA lets someone you trust make decisions for you if you lose mental capacity.

• You'll usually pay a government fee to register each LPA, but discounts are sometimes available.

• You don't have to hire a solicitor, but they can make the process easier, though it costs more.

• Online services are a cheaper way to get your LPA documents sorted.

• Choosing the right person as your attorney is really important, so pick carefully.

Understanding the Purpose of an LPA

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone you trust (known as your 'attorney') to make decisions on your behalf if you're unable to do so yourself. It's about planning for the future and ensuring your wishes are respected if you lose the capacity to make your own decisions. Think of it as giving someone you trust the authority to step into your shoes when you can't.

It's important to note that there are different types of LPA, covering different aspects of your life. A financial affairs LPA lets your attorney manage your money and property, while a health and welfare LPA covers decisions about your medical care and living arrangements.

What is Mental Capacity?

Mental capacity refers to your ability to make your own decisions. This includes understanding information, retaining that information, using it to make a decision, and communicating that decision. Someone might lack capacity due to various reasons, such as:

• Dementia

• A stroke

• A severe head injury

• A mental health condition

It's important to remember that a lack of capacity should only be determined after a proper assessment, and it should always be decision-specific. Just because someone struggles with one type of decision doesn't mean they lack the capacity to make all decisions.

Do I Need an LPA?

Deciding whether you need an LPA is a personal choice, but it's something everyone should consider. Without an LPA, if you lose mental capacity, your family might need to apply to the Court of Protection to make decisions on your behalf. This can be a lengthy and expensive process. Here are a few reasons why you might want to consider setting up an LPA:

• Peace of mind: Knowing that someone you trust will be able to manage your affairs if you can't.

• Control: You get to choose who your attorney is and what decisions they can make.

• Avoiding delays: An LPA allows decisions to be made quickly and efficiently, without the need for court intervention.

Having an LPA in place can save your loved ones a lot of stress and heartache during a difficult time. It ensures that your wishes are respected and that your affairs are managed smoothly.

The Core Costs of an LPA

Government Registration Fee for an LPA

Once you've put together your Lasting Power of Attorney, it needs to be officially registered with the Office of the Public Guardian (OPG). This registration is a must before the LPA can actually be used, and it can take a couple of months, so it's worth bearing in mind. The standard fee for registering each LPA is £82. So, if you're doing both a property and financial affairs LPA and a health and welfare LPA, that's £164 in total. You can pay the OPG by credit card, debit card, or even cheque.

Are You Eligible for a Refund from the OPG?

Did you register an LPA between 2013 and 2017? If so, you might be in line for a partial refund. This is because the OPG's fees were higher than they should have been during that period. The amount you can claim back depends on when you registered. Check the government website for details on how to claim; it could be a welcome surprise!

What About Other Costs for an LPA?

Beyond the registration fee, the main cost you'll likely encounter is the fee for preparing the LPA documents themselves. This is where costs can vary quite a bit. You can complete the forms yourself for free, but many people opt for assistance to ensure everything is done correctly. This assistance can come in the form of a solicitor or an online service. The cost of LPA preparation can vary significantly.

It's worth shopping around and comparing prices before committing to a particular service. Consider what level of support you need – are you comfortable filling out the forms yourself with some guidance, or do you prefer a solicitor to handle everything from start to finish?

Navigating Professional Assistance for Your LPA

Do I Need a Solicitor to Make an LPA?

Making a Lasting Power of Attorney (LPA) can feel like navigating a maze. You might wonder, "Do I really need a solicitor?" The short answer is no, it's not compulsory. However, engaging a solicitor can be a wise move, especially if your affairs are complex or you're unsure about the process. Think of it as having an expert guide through tricky terrain. Solicitors ensure everything is legally sound, minimising the risk of future challenges to your LPA. Plus, they can offer impartial advice, which is invaluable when making such important decisions.

How Much Does a Solicitor Charge for Lasting Power of Attorney?

Solicitor fees for LPAs can vary quite a bit. It's a good idea to shop around and get a few quotes before making a decision. Several factors influence the cost, including the solicitor's experience, the complexity of your situation, and where you're located. Generally, you can expect to pay anywhere from £300 to £600 per LPA document. This solicitor's fees usually covers the preparation of the LPA, advice on choosing attorneys, and ensuring the document is correctly executed and registered.

Here's a rough breakdown of potential costs:

• Simple LPA (one type, straightforward situation): £300 - £450

• Complex LPA (multiple types, intricate finances): £450 - £600+

• Hourly rate (for consultations and advice): £150 - £300 per hour

Can I Complete My Own LPA Form?

Yes, you absolutely can complete your own LPA form! The Office of the Public Guardian (OPG) provides all the necessary forms and guidance on their website. Doing it yourself can save you a significant amount of money. However, it's crucial to be meticulous and follow the instructions carefully. Mistakes can lead to your LPA being rejected, costing you time and money to rectify.

Here are some things to consider if you decide to go it alone:

• Accuracy is key: Double-check every detail to avoid errors.

• Witnessing requirements: Ensure the forms are signed and witnessed correctly.

• Understanding the implications: Be fully aware of the powers you're granting to your attorneys.

Completing your own LPA form can be empowering, but it's not without its risks. If you're unsure about any aspect of the process, seeking professional advice is always a good idea. It's better to be safe than sorry when it comes to protecting your future.

Exploring Online LPA Solutions

Benefits of Online Lasting Power of Attorney Services

Doing things online is pretty normal these days, and LPAs are no different. Online services can make the whole process easier and often cheaper. Instead of endless appointments and paperwork, you can fill everything out from your sofa. Plus, many online platforms offer guidance and support, so you're not completely on your own.

Here's a quick rundown of the advantages:

• Convenience: Work on your LPA at any time, from anywhere.

• Cost savings: Usually cheaper than using a solicitor.

• Step-by-step guidance: Many platforms offer help along the way.

• Faster processing: Online submissions can sometimes speed things up.

Cost-Effective LPA Preparation Online

One of the biggest draws of online LPA services is the price. Solicitors can be expensive, with fees sometimes reaching £1000. Online services cut out a lot of the overheads, meaning they can offer more affordable options. You might be looking at paying just a fraction of what a solicitor would charge. It's worth comparing a few different providers to see what's included in the price, like review services or support.

Octopus Legacy Lasting Power of Attorney

There are several online services that can help you prepare your LPA. Octopus Legacy Lasting Power of Attorney is one of them. They aim to simplify the process, offering a user-friendly platform to guide you through each step. It's worth checking out their website to see if their service meets your needs. They can help you understand and complete your LPA in no time. By removing the hassle of organising and completing your document with a local provider, they are much more affordable. Get in touch with them to find out more!

Reducing Your LPA Expenses

Making a Lasting Power of Attorney (LPA) is important, but the costs can add up. Let's look at ways to keep those expenses down.

Eligibility for Fee Reductions

You might be able to pay a reduced fee, or even nothing at all, depending on your financial situation. The government offers help if you're on a low income or receive certain benefits. It's worth checking if you qualify before you start the application process. This can significantly lower the overall cost of setting up your LPA forms.

Applying for a Discount on Your LPA

To get a discount, you'll need to provide evidence of your financial situation. This usually involves things like bank statements or proof of benefits. The application process is straightforward, and the Office of the Public Guardian (OPG) has clear guidance on what you need to do. Don't be put off by paperwork; the savings can be substantial. The registration fee with the office of the public guardian is a key expense to consider.

When to Expect Your LPA Refund

If you're eligible for a refund (for example, if you registered your LPA between 2013 and 2017), it's good to know what to expect. The OPG processes refunds in batches, so it can take a few weeks or even months to receive the money. Keep an eye on your bank account and don't hesitate to contact the OPG if you haven't heard anything after a reasonable amount of time.

It's important to remember that while saving money is great, the most important thing is to make sure your LPA is valid and reflects your wishes. Don't cut corners that could compromise the document's effectiveness. Getting it right the first time can save you money and stress in the long run.

Here's a quick summary of potential savings:

• Check eligibility for fee reductions.

• Apply for refunds if you registered between 2013-2017.

• Consider online LPA services for lower preparation costs.

Choosing the Right Attorney for Your LPA

Who Should I Choose as My Attorney?

Picking the right attorney is a big deal. It's about entrusting someone to make important decisions on your behalf if you can't. You could ask a family member, a close friend, or even a professional like a solicitor. The main thing is to choose someone you trust completely to act in your best interests. It's also a good idea to chat with them about it beforehand, so they understand what's involved and are happy to take on the responsibility. They need to be over 18, and there are some restrictions – for example, someone who's bankrupt can't be your attorney for financial decisions. You can find out more about choosing an attorney on the government website.

How Many Attorneys Can I Have?

You can actually have more than one attorney. If you do, you need to decide how they'll make decisions together. There are a couple of options:

• Jointly: This means they have to agree on every decision.

• Jointly and Severally: This means they can act together, or separately, whichever they prefer.

You could also specify that they act jointly for some decisions, like selling a house, but jointly and severally for everything else. It's also worth thinking about appointing replacement attorneys, just in case one of your original choices can't act anymore, maybe because they've passed away or lost capacity themselves.

Restrictions on Attorney Selection

There are a few rules about who you can choose as your attorney. They need to be over 18, and they can't be a professional care worker unless they're also a close relative. Also, if you're setting up a Health and Welfare LPA, you can't give your attorney the power to make decisions about life-sustaining treatment unless you specifically say so in the LPA form.

It's really important to have an open and honest conversation with anyone you're thinking of appointing as your attorney. Make sure they understand your wishes and values, and that they're comfortable making decisions on your behalf. This can help avoid any disagreements or misunderstandings down the line.

Different Types of Lasting Power of Attorney

Property and Financial Affairs LPA

This type of LPA allows your attorney(s) to make decisions about your money and property. This includes things like managing bank accounts, paying bills, selling your house, and dealing with investments. It's important to consider when you want this LPA to come into effect. You can choose for it to be used while you still have mental capacity, or only when you lose capacity.

• Managing bank accounts

• Paying bills

• Selling a home

It's worth noting that this type of LPA can be used even while you still have mental capacity, but only if you give your permission. This can be useful if you need assistance with managing your finances but don't want to give up complete control.

Health and Welfare LPA

This LPA covers decisions about your healthcare and personal welfare. It can only be used once you've lost the mental capacity to make these decisions yourself. This includes things like where you live, your medical treatment, and your daily routine. It's a really important document to have in place, as it ensures your wishes are respected when you can't communicate them yourself. You can specify the attorney selection in this document.

• Decisions about medical treatment

• Decisions about daily routine

• Decisions about where you live

Understanding Enduring Power of Attorney

Before Lasting Powers of Attorney, there were Enduring Powers of Attorney (EPAs). You can no longer create an EPA, but if you made one before 2007, and it's still valid, it can still be used. EPAs only covered decisions about property and financial affairs. If you have an EPA, it's a good idea to check if it needs to be registered with the Office of the Public Guardian.

Here's a quick comparison:

Feature	Enduring Power of Attorney (EPA)	Lasting Power of Attorney (LPA)
Decisions Covered	Property and Financial Affairs	Property & Financial, Health & Welfare
Creation Date	Before 2007	After 2007
Mental Capacity Required	Yes	Yes

• EPAs only cover financial decisions.

• You can't make new EPAs anymore.

• Existing EPAs might need registering.

Understanding the different kinds of Lasting Power of Attorney is really important for planning your future. If you want to learn more about how these legal documents can help you and your family, or if you're ready to get started, please visit our website. We're here to help you make smart choices for what's ahead.

Wrapping Things Up

So, there you have it. Figuring out the cost of an LPA can seem a bit much at first, with all the different bits and pieces. But hopefully, this has made it a bit clearer. The main things to remember are the government fee and then whatever you pay for someone to help you get the forms ready. Whether you go it alone, use an online service, or get a solicitor involved, there are options for everyone. The big takeaway is that sorting out an LPA is a really good idea for peace of mind, and it doesn't have to break the bank if you do a bit of looking around. It's all about finding what works best for you and your situation.

Frequently Asked Questions

What exactly is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that lets you choose one or more people (called attorneys) to make decisions for you if you become unable to do so yourself. This could be due to an illness, an accident, or just getting older. There are two main types: one for your money and property, and another for your health and care.

How much does it cost to get an LPA?

The main cost is a fee of £82 to register each LPA with the Office of the Public Guardian (OPG). If you need both types of LPA (for finances and for health), that's £164 in total. You might also pay for help preparing the documents, which can vary a lot.

Do I need a solicitor to make an LPA?

You don't have to hire a solicitor. You can fill out the forms yourself, which is free through the government website. However, many people find the forms confusing and prefer to get help from a service or solicitor to make sure everything is correct.

Can I get help with the LPA fees?

Yes, you might be able to get a discount or even pay nothing. If your income is below £12,000 a year, you could get a 50% discount on the registration fee. If you receive certain benefits, you might not have to pay the fee at all.

Who should I pick to be my attorney?

You should choose someone you trust completely to make decisions that are best for you. This could be a family member, a close friend, or even a professional like a solicitor. They must be over 18 and understand the big responsibility involved.

When does an LPA actually start working?

An LPA becomes active once it's registered with the Office of the Public Guardian. For a 'Property and Financial Affairs' LPA, your attorney can start making decisions as soon as it's registered, even if you still have mental capacity, if you choose this option. For a 'Health and Welfare' LPA, your attorney can only make decisions if you lose the ability to make them yourself.