Filling out the application for a lasting power of attorney (LPA) is complicated. But once done it’s important to remember that’s not the end of the road.
If you need to use the LPA to handle someone’s finances, then you will also need to register it with key providers like the donor’s bank beforehand. This is something that takes time and is worth doing sooner rather than later, especially if you want to avoid unnecessary stress and delays.
This article is for information only and not legal or financial advice. If you’re not sure what’s right for you, a solicitor or financial adviser can help.
We’re looking specifically at LPAs in England and Wales. If you live in Scotland or Northern Ireland, there are different rules. You can find out more from your local government’s website.
Registering a lasting power of attorney with the donor’s bank
To start with you cannot use an LPA until it’s registered with the Office of the Public Guardian. You or the donor can opt to register it as soon as the forms are processed – even if it’s not needed yet. The registered LPA can be used after it’s been activated – a donor with capacity can activate it any time if they want to or it’s automatically activated should the donor lose capacity. It’s important that the person acting as the attorney talks to the donor about what their wishes are to make sure they’re comfortable about when the attorney can access their assets.
Once the LPA is activated the next step is to notify the various providers and banks that you’re going to have to deal with. From this point, the attorney will be able to access the donor’s bank accounts to pay bills, manage direct debits and deal with any savings and investments.
Different providers will have different processes so it’s important to talk to them first before you start sending any documentation. Providers will want to see the LPA so they can see proof that you’re the attorney – this can be either the original or a certified copy.
If the LPA was registered after 1 January 2016, then you can use the Use an LPA service on the gov.uk website to generate an online summary. The provider can use this to check that the LPA is valid, who the attorneys are etc. They may also wish to see either the original registered LPA or a certified copy that either the donor or a solicitor has signed.
If the LPA was registered before 1 January 2016, then the provider will need to see the paper LPA instead.
Over and above this the provider may ask for further details like the attorney’s name, date of birth and address or that of the donor. They may also ask for information they have previously used with the donor like account numbers.
Why LPA registration with banks can take time
The process takes time, and that’s why it makes sense to do it sooner rather than later and certainly before the donor loses any sort of capacity.
Many major banks will have designated teams, experienced in dealing with LPAs and this can make things a bit quicker. However, the checks are important and need to be done thoroughly.
You may find that the bank temporarily freezes the donor’s account while they verify the LPA to safeguard any money. And this can cause major difficulties, especially if the donor has lost capacity and there’s no way to access the money to pay bills for instance. In such cases the attorneys should keep in close contact with the bank to see what can be done.
Taking steps like using the digital service can make a huge difference because it lets the bank verify the LPA in minutes instead of however long it takes to post and verify paper copies. It’s also worth contacting the bank directly to ask them what documentation they need and whether they need something like an in-branch visit.
It is overall a long-winded and complicated process for attorneys and donors, but taking the time to do it swiftly and properly can make sure you’ve cleared all the safety checks, so that when the time comes you can use the LPA without problems.