Lasting Power of Attorney Cost UK: Your Essential Guide

Ensuring your affairs are in order, even if you lose the capacity to make decisions yourself, is a vital part of financial planning. A Lasting Power of Attorney (LPA) allows you to appoint trusted individuals to make decisions on your behalf regarding your health, welfare, property, and financial matters. While the peace of mind an LPA offers is invaluable, it's natural to wonder about the Lasting Power of Attorney cost in the UK.

This comprehensive guide will walk you through all the potential expenses associated with setting up an LPA. We'll cover the mandatory government fees, explain when you might need to involve a solicitor, outline their typical charges, and even detail how you might be able to reduce or avoid some costs altogether. Understanding these aspects will help you budget effectively and make informed decisions.

What is a Lasting Power of Attorney (LPA)?

Before delving into the costs, let's briefly recap what an LPA is and why it's so important. An LPA is a legal document that lets you appoint one or more people (known as 'attorneys') to make decisions for you. This goes into effect if you lose mental capacity or if you no longer want to make decisions for yourself. There are two types of LPA:

• Property and Financial Affairs LPA: This covers decisions about your money and property, such as managing bank accounts, paying bills, collecting benefits or pensions, and selling your home. It can be used as soon as it's registered, with your permission, or only when you lack mental capacity.
• Health and Welfare LPA: This covers decisions about your daily routine, medical care, moving into a care home, and life-sustaining treatment. This LPA can only be used when you lack mental capacity and cannot make these decisions yourself.

Without an LPA, if you lose mental capacity, your loved ones would need to apply to the Court of Protection to become 'deputies'. This process is often much more expensive, time-consuming, and stressful than setting up an LPA in advance.

Core Lasting Power of Attorney Cost: The Application Fee

The most fundamental Lasting Power of Attorney cost in the UK is the application fee charged by the Office of the Public Guardian (OPG). The OPG is responsible for registering LPAs and supervising deputies.

As of the current financial year, the fee to register one LPA is £82. Since most people choose to set up both a Property and Financial Affairs LPA and a Health and Welfare LPA, the standard OPG fee for a complete set of two LPAs for one individual is £164 (£82 x 2).

Key points about the OPG fee:

• Per LPA: The fee is charged per document, not per person. So, if you and a partner each want both types of LPA, the total OPG fee for the couple would be £328 (4 x £82).
• Non-refundable: Once submitted, the OPG fee is generally non-refundable, even if your application is rejected or you decide not to proceed.
• Mandatory: This fee is compulsory for all LPA applications unless you qualify for an exemption or remission.

Professional Fees: When to Use a Solicitor and What They Charge

While you can complete and register an LPA yourself, many people opt to use a solicitor. This is where the Lasting Power of Attorney cost can vary significantly. Solicitors provide expert advice, ensure the LPA is correctly drafted, and handle the registration process, reducing the risk of errors or rejection.

Why use a solicitor?

• Expert advice: They can advise on complex family situations, potential disputes, and the implications of certain decisions.
• Correct drafting: They ensure the LPA is legally sound, uses the correct wording, and reflects your wishes precisely.
• Certificate Provider: A solicitor can act as the 'certificate provider', confirming you understand the LPA and are not being unduly influenced.
• Error prevention: They minimise the chances of mistakes that could lead to the OPG rejecting your application, saving you time and potential re-application fees.
• Peace of mind: Knowing a professional has handled it correctly can offer significant peace of mind.

Typical Solicitor Fees

Solicitor fees for preparing and registering an LPA can vary widely based on your location, the complexity of your situation, and the solicitor's experience. Generally, you can expect to pay:

• For a single LPA (one type for one person): £250 - £700 + VAT
• For two LPAs (both types for one person): £350 - £900 + VAT
• For a couple (two LPAs each, total four LPAs): £600 - £1,500 + VAT

Important notes about solicitor fees:

• VAT: Always check if the quoted fee includes VAT (Value Added Tax), currently 20% in the UK.
• Disbursements: Some solicitors might quote a fee that excludes the OPG registration fee. Always clarify if the OPG fee is included or an additional 'disbursement'.
• Fixed fees vs. hourly rates: Most solicitors offer fixed fees for LPA preparation, as it's a relatively standard procedure. This provides certainty regarding the Lasting Power of Attorney cost. However, if your situation is particularly complex, they might charge an hourly rate.
• Package deals: Many firms offer discounts if you're also making a Will or other estate planning documents.

Comparison of LPA Costs

To give you a clearer picture, here's a comparison table summarising the potential Lasting Power of Attorney cost scenarios:

Estimates are for guidance only and are subject to change. Always obtain a direct quote from a solicitor.

Reducing the Lasting Power of Attorney Cost: Exemptions and Remissions

There are circumstances where you might be able to reduce or completely avoid the OPG registration fee. These are based on your income and benefit status.

Fee Exemptions

You are entitled to a full exemption from the £82 OPG fee if, at the time you submit your LPA application, you receive one of the following means-tested benefits:

• Income Support
• State Pension Credit (Guarantee Credit)
• Housing Benefit
• Council Tax Reduction (not including the 25% single person discount)
• Employment and Support Allowance (income-related)
• Jobseeker's Allowance (income-based)
• Universal Credit (and your earnings are below a certain threshold)

How to apply for an exemption: You'll need to complete form OPG120A 'Application for exemption or remissions' and send it with your LPA application. You'll also need to provide proof of your benefit.

Fee Remissions (50% Reduction)

You may be eligible for a 50% remission (meaning you pay half the fee, so £41 per LPA) if your gross annual income is £12,000 or less before tax, and you don't receive any of the means-tested benefits listed above.

How to apply for a remission: You'll need to complete form OPG120A, providing details of your income. It's important to demonstrate that your gross income is within the threshold.

Important notes on exemptions and remissions:

• Proof required: You must provide evidence of your eligibility (e.g., benefit letters, bank statements, payslips). Without sufficient proof, your application for exemption/remission could be rejected, and you'll be asked to pay the full fee.
• Eligibility at time of application: Your eligibility is assessed based on your circumstances at the time the LPA is submitted to the OPG, not when you first signed it.
• Solicitor fees excluded: These exemptions and remissions only apply to the OPG registration fee. If you use a solicitor, you will still need to pay their professional fees unless they offer pro bono services (which is rare).

Other Potential Costs and Considerations

While the OPG fee and solicitor charges make up the bulk of the Lasting Power of Attorney cost, there are a few other minor expenses or considerations:

• Postage: If you're doing it yourself, you'll incur postage costs for sending forms to the OPG, especially if you use recorded delivery for security.
• Printing and copying: You'll need to print the LPA forms and make copies for your attorneys and certificate provider.
• Lost LPA replacement: If a registered LPA is lost or damaged, you can request a certified copy from the OPG for a fee (currently £35 per LPA). It's wise to keep the original in a safe place and provide certified copies to your attorneys.
• Re-application fees: If your DIY LPA is rejected due to errors, you might have to pay the OPG fee again (unless you qualify for exemption/remission) when you re-submit corrected forms. This highlights the value of professional help.

Is an LPA Worth the Cost?

Considering the potential Lasting Power of Attorney cost, you might ask if it's truly worth it. The answer, almost universally, is a resounding yes.

Without an LPA, if you lose mental capacity, your family would face a far more complex, stressful, and expensive process to gain legal authority to manage your affairs. They would need to apply to the Court of Protection to become 'deputies'.

The deputyship application process typically involves:

• Court fees: Application fees (currently around £371) and potential supervision fees.
• Legal fees: Solicitors' fees for deputyship applications can easily run into thousands of pounds (£3,000 - £8,000) due to the complexity and court involvement.
• Delays: The process can take many months, leaving your finances and welfare in limbo.
• Lack of choice: The court decides who acts as your deputy and under what conditions, often without your prior input.
• Ongoing legal obligations: Deputies have strict reporting duties to the OPG, which can be burdensome.

The cost of setting up an LPA pales in comparison to the potential financial and emotional burden of a deputyship application. An LPA gives you control, saves your loved ones immense stress, and ensures your wishes are respected.

Key Takeaways on Lasting Power of Attorney Cost UK

• The mandatory OPG registration fee is £82 per LPA. Most people need two LPAs, costing £164.
• Using a solicitor adds to the Lasting Power of Attorney cost but provides expertise, reduces errors, and offers peace of mind. Expect solicitor fees of £350 - £900 + VAT for a single person's two LPAs.
• Total costs for a single person with a solicitor often range from £584 to £1,244 (including OPG fees).
• Fee exemptions are available for those on certain means-tested benefits, and 50% remissions for those with gross annual incomes under £12,000.
• The initial Lasting Power of Attorney cost is significantly lower than the expenses and stress associated with a Court of Protection deputyship application if you lose capacity without an LPA.
• It's a crucial investment in your future and offers invaluable protection for your wishes and your family.

By understanding these costs, you can plan effectively and ensure you put these essential legal documents in place, safeguarding your future and providing security for your loved ones.