A Lasting Power of Attorney (LPA) is a legal document which enables you to appoint another person or persons (your attorneys) to make decisions on your behalf should you ever be in a position where you are unable to make those decisions yourself.

There are two types of LPA: One relating to your property and financial affairs and one relating to your health and welfare. A property and affairs LPA allows your attorneys to make decisions about your house, or any other properties you may own, your bank accounts and other finances. A health and welfare LPA allows your attorneys to make decisions relating to where you live, your daily routine and consent to medical or life-sustaining treatment on your behalf.

Lasting Powers of Attorney only operate during your lifetime. Your attorneys will not be able to manage the administration of your estate. This will be dealt with by the executors appointed in your Will or the administrators appointed under the intestacy rules, if you do not have a Will.

Your LPA can only be used by your attorneys once it has been registered with the Office of the Public Guardian. You can register your LPA as soon as it is created and your attorneys can begin to use it straight away or it can be stored ready for use by your attorneys in the future. If you do not register it straight away, your attorneys are under an obligation to register it if you begin to lose the capacity to manage your affairs by yourself and must do so if they wish to begin using it.

Choosing whom you appoint as your attorneys is an important decision and it is entirely your own but they must be over 18 and must not be an undischarged bankrupt. The role of an attorney is a very powerful one and so you must choose your attorneys carefully. You should only consider people whom you trust implicitly.

You can choose as many attorneys as you wish but if you choose more than one, you will need to decide whether they will be able to make decisions together or whether they should be able to act independently of each other.

You may choose replacement attorneys to act in the event that one of your original attorneys becomes unable to act for any reason, dies before you or no longer wishes to act on your behalf. Your attorneys cannot select their own replacement.

You can restrict what you want your attorneys to be able to do on your behalf, although it is important to bear in mind that the more you try to restrict your attorneys the less effective your LPA can become. Alternatively, your attorneys may find it helpful if you give them guidance about particular issues. It is not binding on them but it can help them to make decisions on your behalf that reflect your wishes.

You can opt to allow your attorneys to receive payment for their actions in their roles as attorneys. Even if they are not receiving payment, your attorneys will be able to claim out-of-pocket expenses for travelling or telephone calls and other reasonable costs incurred whilst undertaking their duties.

For each LPA that you make you will need to appoint someone to act as a certificate provider. This is someone who is happy to confirm that you understand the document and that you are not under any pressure to make it. You can choose from two types of certificate provider; either someone who has known you personally for at least two years, or someone with the relevant professional skills and expertise to certify your LPA, for example, a medical professional or a lawyer. Your certificate provider must not be a member of either your family or your attorney's family, an employee or business partner or an employee of the care home, if you reside in one.

You also need to name at least one person in your LPA who will be entitled to receive notification of when an application is made to register your LPA for use by your attorneys. Selecting people to be notified on registration of your LPA is an important safeguard. If you do not wish to name anyone to be notified then you must choose a second certificate provider.

An LPA must be executed whilst you are still "mentally capable" of understanding the document and therefore it should not be left until something happens to you, as it may then be too late! LPAs can be used to cover illnesses and situations such as car accidents and can also assist in temporary situations such as somebody signing important papers for you while you are out of the country.
There is no automatic right for a husband, wife or next-of-kin to be able to make decisions on your behalf. And we would advise people of all ages to make an LPA as none of us know what the future holds or when the document may be needed.

If you do not have an LPA in place (nor an old style Enduring Power of Attorney, which as of October 2007 could no longer be made) and you become mentally incapable, your assets will be frozen and somebody, usually a relative, will have to make an application to the Court to be appointed as your Deputy.