Cost Of Setting Up Lasting Power Of Attorney UK

In this article we’ll explore the cost of setting up a Lasting Power of Attorney (LPA) in the UK. Understanding the financial aspects involved can help you make informed decisions and plan effectively. So, let’s delve into what you need to know about the costs and the value of investing in an LPA. Do remember, the costs stated are accurate at the time of writing this article so please do check with relevant organisations for the most up to date prices.

Please click here to find out more about our Wills and Lasting Power of Attorney Services.

Free Initial Telephone Discussion

For a free initial discussion on how we can help you deal with the legal implications of creating a lasting power of attorney, get in touch with us today. We are also experienced in dealing with all aspects of Wills and Probate and we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.

What is a Lasting Power of Attorney?

Before we discuss costs, it’s important to understand what a Lasting Power of Attorney (LPA) is. An LPA is a legal document that allows you to appoint someone (an attorney) to make decisions on your behalf if you become unable to do so yourself. There are two types of LPAs:

1. Health and Welfare LPA: This allows your attorney to make decisions about your health care, living arrangements, and other personal matters.
2. Property and Financial Affairs LPA: This permits your attorney to handle your financial matters, including managing bank accounts, paying bills, and making investments.

Costs of Setting Up an LPA

The cost of setting up an LPA can vary depending on several factors, including whether you choose to do it yourself or seek professional assistance. Here’s a breakdown of the potential costs involved:

1. Registration Fees

To make an LPA legally binding, it must be registered with the Office of the Public Guardian (OPG). The current fee for registering an LPA is £82 per document. This means if you are setting up both types of LPAs (Health and Welfare, and Property and Financial Affairs), the total registration fee would be £164.

2. Professional Fees

While you can complete and register an LPA yourself, many people choose to seek professional help to ensure that everything is done correctly. Professional fees can vary significantly based on the complexity of your LPA and the service provider. Here’s a general idea of what you might expect:

• Basic LPA Drafting: If you opt for a basic service where a solicitor drafts the LPA for you, fees typically range from £200 to £500 for each LPA. This cost usually includes advice on the legal implications and ensuring that the document meets all legal requirements.
• Full Service: If you require more comprehensive assistance, including advice on choosing attorneys and understanding the implications of the LPA, fees can range from £500 to £1,000 per LPA. This might also cover additional services like ongoing advice and support.

3. Additional Costs

• Witnessing and Certification: If you’re using a professional service, they may include witnessing and certification in their fees. However, if you need to arrange this separately, some witnesses may charge a nominal fee.
• Amendments and Updates: If you need to make changes to your LPA after it has been drafted, there may be additional costs involved. Amendments or updates might incur extra charges from your solicitor or service provider.

DIY vs Professional Assistance

Deciding whether to set up an LPA yourself or to seek professional help can impact the overall cost. Here’s a comparison:

DIY Approach

Setting up an LPA yourself can be more cost-effective. You can use online resources and templates provided by the OPG to complete the process. The primary costs will be the registration fees (£82 per LPA), and you may incur minimal costs for independent witnessing.

However, while a DIY approach can save money, it requires a good understanding of the legal requirements and careful attention to detail to avoid mistakes that could invalidate your LPA.

Professional Assistance

Opting for professional assistance ensures that your LPA is drafted correctly and in line with your wishes. Solicitors and legal experts can provide valuable advice and handle all aspects of the process, reducing the risk of errors. The cost of professional services can be higher, but it often provides peace of mind and can be worth the investment, especially if your situation is complex.

Further, if you try the DIY approach and you get it wrong, it can prove costly and is often problematic to rectify.

Value of Setting Up an LPA

While the costs of setting up an LPA might seem significant, it’s important to consider the value and protection it provides:

1. Peace of Mind: Knowing that your affairs will be managed according to your wishes if you become incapacitated offers peace of mind.
2. Prevention of Disputes: An LPA helps prevent disputes among family members and ensures that someone you trust makes decisions on your behalf.
3. Avoidance of Legal Complications: Without an LPA, your family may have to apply to the Court of Protection to manage your affairs, which can be costly and time-consuming.

Steps to Setting Up an LPA

Here’s a brief overview of the steps involved in setting up an LPA:

1. Decide on the Type(s) of LPA: Determine whether you need a Health and Welfare LPA, a Property and Financial Affairs LPA, or both.
2. Choose Your Attorneys: Select individuals you trust to act on your behalf.
3. Draft the LPA: You can either use the OPG’s forms and guidance to draft the LPA yourself or seek professional help.
4. Sign and Witness: Ensure that the LPA is signed by you and witnessed correctly. The certificate provider must also sign.
5. Register the LPA: Submit the LPA forms to the OPG for registration and pay the registration fee.
6. Receive Confirmation: Once registered, you will receive confirmation from the OPG, and the LPA will be in effect.

Conclusion

Understanding the cost of setting up a Lasting Power of Attorney is crucial for effective planning. While there are costs involved, both in terms of registration fees and professional services, the benefits of having an LPA in place far outweigh the expenses. It provides security, ensures your wishes are honoured, and can prevent legal complications in the future.

How we can help

We have a proven track-record of helping clients create a lasting power of attorney. This also includes all the different types, even if you need more than one. We are a multidisciplinary firm and have all the expertise inhouse to satisfy the most exacting requirements of our clients. We will guide you through all the necessary legal due diligence in a comprehensive and timely manner. We firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting.

How to Contact Our Wills and Probate Solicitors

It is important for you to be well informed about the issues and possible implications of creating a Lasting Power of Attorney. However, expert legal support is crucial in terms of ensuring your wishes are met as you would want them to be.

To speak to our Wills and Probate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Blog, News Tagged as

Comments are closed.