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Could Lasting Powers of Attorney Go Digital?

A more straightforward digital system to set up a Lasting Power of Attorney (LPA) is possibly on the way, but experts say that it is vital that sufficient safeguards are in place to protect elderly and vulnerable people from abuse.

However, how would a digital system work and are the concerns for potential abuse of a digital process properly addressed?

 

What is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document which allows a person to appoint someone to manage their affairs should they lose the capacity to do so themselves. Normally, this will be a family member or close friend.

 

Why Do We Need a Digital System for Lasting Powers of Attorney?

An LPA is an essential part of planning for the future and in recent years registrations have surged. However, creating and registering a Lasting Power of Attorney still involves a significant amount of paperwork, based on a system created more than 30 years ago.

The Government is looking to both modernise and simplify the process by introducing a digital system. The new system will introduce a fast-track process to grant LPAs to people who need them urgently, for example, if a person’s health is deteriorating quickly. At present, it takes around 12 weeks to register an LPA, which is challenging for those with a relative who has suffered a sudden change in their health or mental capacity.

 

What Are The Difficulties With Introducing a Digital System?

Both legal and financial experts have welcomed the proposed changes to the process for registering a Lasting Power of Attorney but have pointed out some challenges.

Justice Minister Alex Chalke says: “An LPA is not just a piece of paper. It is a legal agreement that allows a person to set out their wishes and preferences and have peace of mind that these will be followed. The protections that exist in the LPA are based on decades, if not centuries, of tradition and legal case law. They’re based on known and trusted paper-based social conventions, such as signing and witnessing”

Although many elderly people have adopted technology, there is still a large proportion who do not have access to a computer or smartphone.

 

How Will The New System Work for Lasting Powers of Attorney?

The Government says that it would like to have LPAs digitally checked at the time they are made and sent for registration as soon as they are executed. A spokesperson said: “Our preferred option is to replace the witness with new safeguards that perform the same function.”

There are also plans to allow a person to make an objection to any LPA from the time the donor begins the process, right up until it is successfully registered.

But added: “Our preferred option is not to introduce a dedicated service, as we do not believe it’s possible to create a faster service with a high enough level of safeguards that is not also overly complex.”

Heather Parker, Director and Head of Private Client at Actons comments that “Whilst there would be benefits to a digitised process for creating and registering Lasting Powers of Attorney it is also clear that these benefits cannot come at the cost of ensuring the appropriate safeguards are in place to protect the elderly and vulnerable.”

 

For advice on Lasting Powers of Attorney or Business Lasting Powers of Attorney, or to discuss any other personal legal issue, please contact Heather Parker or any member of our specialist private client team on 0115 9 100 200 or click here to send an email.

Posted on October 7, 2021

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