Cheapest Way for a Married Couple in the UK to Set Up Lasting Power of Attorney

A Comprehensive Guide to Affordable Legal Planning for Couples

Key Takeaways

Utilize Free Government Resources: Download and complete LPA forms directly from the official GOV.UK website to avoid additional costs.
Consider Mirror LPAs: Appointing each other as attorneys through mirror LPAs can be more cost-effective for couples.
Apply for Fee Reductions: Eligible couples can significantly reduce or even waive registration fees by applying for exemptions.

Understanding Lasting Power of Attorney

Setting up a Lasting Power of Attorney (LPA) is a crucial legal step for married couples in the UK to ensure that both partners can make decisions for each other if one becomes unable to do so. An LPA provides the authority to manage financial affairs or make decisions about health and welfare, depending on the type of LPA established.

Types of LPA

1. Property and Financial Affairs LPA

This type of LPA allows your attorney to manage your finances and property. They can handle tasks such as paying bills, managing bank accounts, and selling property on your behalf.

2. Health and Welfare LPA

With a Health and Welfare LPA, your attorney can make decisions about your medical treatment, care, and living arrangements. This includes decisions about your daily routine and medical treatments.

For comprehensive coverage, it's advisable for each partner in a married couple to set up both types of LPAs.

Step-by-Step Guide to Setting Up an LPA

1. Obtain the LPA Forms

The first step is to obtain the necessary forms. You can download the free LPA forms directly from the GOV.UK website. There are two separate forms you need to complete:

Form LP1F: For Property and Financial Affairs LPA
Form LP1H: For Health and Welfare LPA

Completing these forms yourself is the most cost-effective method, eliminating the need for solicitor fees.

2. Complete the Forms

Carefully fill out each form with accurate information. Here’s what you need to include:

Donor Information: Details about yourself (the person granting the power).
Attorney Information: Details about your spouse or another trusted individual who will act as your attorney.
Powers Granted: Specify whether the powers are to take effect immediately or only when you lack the mental capacity to make decisions.
Replacement Attorneys: It’s prudent to appoint replacement attorneys in case your primary attorney is unable or unwilling to act.

Ensure that all sections are filled out correctly to avoid delays or issues during the registration process.

3. Appointment of a Certificate Provider

A certificate provider must confirm that you understand the LPA and are not under any undue pressure to create it. The certificate provider can be:

A professional such as a doctor, lawyer, or social worker
A friend or family member who has known you for at least two years

They will need to sign the LPA forms, verifying your mental capacity and voluntariness in creating the LPA.

4. Notify Relevant Parties

Inform any “named persons” listed in the forms. This gives them the opportunity to raise any objections if they believe the LPA is not in your best interest.

5. Register the LPA

After completing the forms, they must be registered with the Office of the Public Guardian (OPG). The standard registration fee is £82 per LPA. For a married couple setting up both Property and Financial Affairs and Health and Welfare LPAs, the total cost would be £328.

However, if you are eligible for a fee reduction or exemption, your costs can be significantly lower. Details on eligibility can be found on the GOV.UK website.

6. Apply for Fee Reductions or Exemptions

If your household income is below £12,000 per year or if you receive certain benefits, you may qualify for a reduced fee or a complete exemption. To apply, complete the LPA120 application form available on the GOV.UK website.

Making use of these reductions can lower your total expenditure on setting up LPAs.

Cost Analysis

Understanding the cost breakdown can help you make informed decisions. Below is a comparison of different methods to set up an LPA:

Method	Description	Estimated Cost
DIY Approach	Download and complete forms from GOV.UK, register directly with OPG.	£328 (4 LPAs x £82)
Online Services	Use affordable online providers to complete and register LPAs.	£240 - £400 for mirror LPAs
Solicitor Assistance	Hire a solicitor to handle the entire process.	£300 - £1,000+

Opting for the DIY approach clearly offers the most significant savings, especially when coupled with applying for fee reductions.

Tips to Reduce Costs

1. Utilize Free Government Resources

The OPG provides free forms and comprehensive guidance on their website. By using these resources, you can eliminate the need for paid legal advice.

2. Consider Mirror LPAs

Mirror LPAs allow both partners to appoint each other as attorneys. Many online services offer discounted rates for mirror LPAs, making this a cost-effective option for married couples.

3. Apply for Fee Reductions

If you meet the eligibility criteria, applying for a fee reduction can save you up to 50% on registration costs. Ensure you complete the LPA120 form accurately to take advantage of these savings.

4. Avoid Unnecessary Legal Fees

By completing the forms yourself or using an affordable online service, you can bypass the substantial fees charged by solicitors.

Common Mistakes to Avoid

Incomplete Forms: Ensure all sections of the LPA forms are thoroughly completed to avoid rejection or delays.
Ignoring Legal Advice: While it's cost-effective to do it yourself, ensure you fully understand the implications of the powers you are granting.
Not Appointing Replacement Attorneys: Always designate backup attorneys to ensure continuity in managing affairs.
Delaying Registration: Register the LPA promptly after completion to ensure it is in place when needed.

Benefits of Setting Up an LPA

Establishing an LPA provides peace of mind, ensuring that your financial and health affairs are managed according to your wishes should you become incapacitated. For married couples, it ensures that your spouse can seamlessly step into the role of attorney without legal complications.

Control Over Future Decisions: Define how your affairs will be managed, preventing unwanted interference.
Financial Security: Protect assets and manage financial matters efficiently.
Healthcare Decisions: Ensure that your healthcare choices are respected and followed.

Conclusion

For married couples in the UK, setting up a Lasting Power of Attorney is an essential step in safeguarding each other's financial and personal well-being. The most cost-effective method involves utilizing free government resources, opting for a DIY approach, considering mirror LPAs, and applying for fee reductions where eligible. By following the outlined steps diligently, couples can establish robust legal arrangements without incurring significant expenses.