The Changing Landscape of Lasting Powers of Attorney

7 August, 2025 5 minutes reading time

A New Dawn for LPAs?

Lasting Powers of Attorney (LPAs) are vital legal documents that ensure individuals have a trusted person to manage their affairs if they lose capacity. Traditionally paper-based, the process has been slow and prone to errors. Recent legislation seeks to digitise LPAs and introduce safeguards. Many legal professionals support the reforms to improve the process, but concerns remain about the safety and accessibility for vulnerable individuals. Despite backing for modernisation, consulting a legal professional remains essential.

The Powers of Attorney Act 2023

The Powers of Attorney Act 2023, which received Royal Assent in September 2023, is the foundation of these reforms. Although the Act is concise, it sets the scene for significant changes by amending the Mental Capacity Act 2005. Its primary goal is to modernise the LPA process and enhance protections against fraud and abuse.

What’s Changing?

The 2023 Act, although not yet fully enacted, introduces significant changes, including:

• A Shift to Digital LPAs: The Act enables the development of an online system for registering and creating LPAs. Done correctly, this could be transformative, as it aims to speed up processing times, reduce human error, and improve accessibility.

• Enhanced ID Checks: The new system will introduce a more robust process for identity verification for those applying for an LPA, adding an extra layer of security to prevent fraudulent applications.

• Donor-Only Registration: Only the person making the LPA, the ‘donor,’ can apply to register it. This change is a safeguard. It ensures the donor has capacity at registration time. It also prevents the attorney from registering the LPA without the donor’s knowledge.

• Expanding the Pool of Objectors: The Act allows more individuals to object to an LPA’s registration, offering an important safeguard against potential misuse.

• OPG Notification Update: The Office of the Public Guardian (OPG) will now notify nominated individuals about LPAS registration. Previously, this task was handled by the donor or their representatives.

The new digital system and its safeguards are currently being developed and will undergo comprehensive testing before full implementation. An improved paper-based process will also remain available for those unable or unwilling to use the digital system.

The Proposed Powers of Attorney Bill (2024-25)

The reforms go even further. The House of Commons has introduced a new Private Members’ Bill, the Powers of Attorney Bill (2024-25). This Bill aims to build on the foundations of the 2023 Act and incorporate additional provisions to strengthen the LPA system.

What’s Proposed?

The Bill proposes to:

• Place Duties on Banks: It seeks to impose new obligations on banks and other financial institutions regarding their handling of LPAs. This approach directly tackles common complaints about banks failing to recognise or appropriately act upon an LPA, which causes significant delays and stress for attorneys.

• Broaden OPG’s Investigative Powers: The Bill aims to strengthen the OPG by giving it greater authority to examine the actions of an attorney. Strengthening the OPG’s powers provides an additional safeguard for vulnerable individuals.

These proposals recognise that the effectiveness of an LPA depends on the system supporting it. Resolving issues with third parties, such as banks, and granting the OPG greater authority should make LPAs more reliable and efficient tools.

Why You Still Need a Lawyer to Prepare Your LPA

With the government’s drive for a streamlined, user-friendly digital system, many individuals might feel tempted to prepare their LPAs online. While the new system aims to be more accessible, consulting a qualified lawyer remains vital. Here’s why:

1. Avoid costly mistakes: The current LPA forms and upcoming digital process have strict requirements. Even minor errors, such as incorrect signatures or spelling mistakes, can lead to rejection. LPA errors in 2023-24 caused over 50,000 rejections, delays, and higher costs. A lawyer’s careful preparation ensures accuracy, saving you time, money, and stress.

2. Tailored Advice and Complexities: Your situation is unique. An online form cannot replace the detailed legal advice a professional can offer. They can help you understand the full implications of your decisions. They also guide you in selecting the right attorney, which can be challenging. Additionally, they support complex cases involving joint property, business interests, or international assets.

3. Protecting Against Abuse and Undue Influence: LPAs give significant authority to attorneys. Lawyers recognise signs of coercion, undue influence, or fraud, acting as a safeguard to ensure you freely establish the LPA and understand its consequences.

4. The Role of the Certificate Provider: The person who certifies your mental capacity for the LPA. While sometimes a close friend may do this, a legal professional is usually best because they have the skills to assess your capacity impartially. Their role is vital in case of disputes. 

5. Peace of Mind: Engaging a lawyer ensures your LPA is legally sound and reflects your wishes. It also makes it harder for others to object later, protecting you and your loved ones when it matters.

Our Advice

The LPA landscape is improving with modernisation, efficiency, and protection. While new digital tools ease the process, legal and personal complexities remain. In a changing world, the expertise of a qualified lawyer is more important than ever.

For more information or advice on LPAs or other estate planning matters, please don’t hesitate to contact us. We’re here to help.

Please note that all views, comments or opinions expressed are for information only and do not constitute and should not be interpreted as being comprehensive or as giving legal advice. No one should seek to rely or act upon, or refrain from acting upon, the views, comments or opinions expressed herein without first obtaining specialist, professional or independent advice. While every effort has been made to ensure accuracy, Curtis Parkinson cannot be held liable for any errors, omissions or inaccuracies.

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