ANYONE who wants to make provision for someone to make decisions on their behalf if they lose their mental capacity needs to be familiar with Lasting Powers of Attorney (LPA).

LPAs were introduced in place of the Enduring Power of Attorney (EPA), although EPAs made prior to October 1, 2007, remain valid.

LPAs enable an individual (the donor) to appoint someone (the attorney) to make decisions about their property and financial affairs – as the old EPA did – but also to decide questions about their health and personal welfare.

Such decisions can be very significant and might include deciding where a person will live, whether they require residential care and taking decisions as to medical treatment. It is also possible to allow the attorney to take decisions about “life-sustaining treatment”.

There are two types of LPA.

● A Property and Affairs LPA enables the attorney to make decisions and take action relating to the donor’s financial affairs, such as paying bills, managing bank accounts and selling the donor’s home. After registration, the Property and Affairs LPA can be used by the attorney both before and after the donor loses mental capacity. This enables the attorney to help with everyday tasks which the donor finds difficult, such as talking on the telephone or drawing money from the bank.

● A Personal Welfare LPA can only be used once the donor lacks the mental capacity to make such decisions for himself, for example if he is suffering from a condition such as dementia.

Both types of LPA must be registered with the court.

It is clear that both types are very valuable if a donor loses his mental capacity, but they are also extremely powerful legal documents.

It is therefore important that the donor considers his or her choice of attorney very carefully and chooses a person – or people – who they trust implicitly to act in their best interests.

Because of the powerful nature of the LPA, safeguards have been included.

These include notifying a trusted individual when the document is registered, thus allowing a period of time for objections, and requiring each LPA to be certified to state that the donor understands the powers granted to the attorney.

■ Helen Wood is a partner at BHP Law, in Stockton. Contact her on 01642-672770.