In 2023-24 more than 50,000 lasting power of attorney (LPA) applications were rejected by the Office of the Public Guardian (OPG) due to mistakes.
If you make an error in your application, the OPG will return it, requiring you to re-apply and usually pay another fee. Processing times are typically now 16 weeks for error-free applications, so any mistake can lead to significant delays.
What is a lasting power of attorney?
Power of attorney (POA) is a legal document where in the event of incapacity one person (the donor) gives another person (s) (the attorneys) the right to make decisions on their behalf. You can only set up a POA when you still have “mental capacity”. There are two types of LPA:
Property and financial affairs: this allows the attorneys to make decisions about bank accounts, money management and property owned by the donor.
Health and welfare: this allows the attorneys to make decisions about healthcare and any medical treatment required.
50,000 LPAs rejected due to mistakes
A Freedom of Information request submitted to the Ministry of Justice found that 50,918 applications were rejected due to mistakes in 2023-24. 30,180 (some 60%) of these were related to property and financial affairs.
In the past five years, a total of 162,023 applications have been rejected!!
This is the breakdown
Tax year | Property and financial affairs | Health and welfare | Total |
2019-2020 | 14,542 | 9,916 | 24,458 |
2020-2021 | 12,057 | 8,177 | 20,234 |
2021-2022 | 18,443 | 12,944 | 31,387 |
2022-2023 | 20,450 | 14,576 | 35,026 |
2023-2024 | 30,180 | 20,738 | 50,918 |
Five year total | 95,672 | 66,351 | 162,023 |
So, what happens if your LPA is rejected?
It costs £82 to register each LPA – so a total of £164 to register both a financial and property affairs LPA and a health and welfare LPA. If you make a mistake, your LPA will be rejected and therefore won’t be legally valid until registered. You will then have to apply again within three months and pay a repeat fee of £41 per application. Even if your LPA is approved by the OPG, there may be hidden errors which could make it unusable in the future. EG: if you appoint your friend Diane as an attorney but her name is entered as “Diana”, the OPG may still register it. However, when Diane presents the LPA at the bank, it might be rejected as it will not match the name on her ID document evidence.
How long does it take to register an LPA?
Further evidence from government data shows 1.16 million LPAs were registered in 2023, a 37% increase from the previous year and surpassing One million for the first time ever. According to the OPG's latest report, covering April 2023 to March 2024, the average processing time for applications was 76 working days, or around 15 weeks. This is some improvement on the 91 working days (18 weeks) recorded in 2022-23, although still significantly longer than the OPG's target of processing applications within 40 working days (8 weeks).
Tips on completing an LPA application correctly
Double check all names, birth dates, and addresses are correct for you and your attorneys. Using initials instead of full names, or omitting middle names and details, are common reasons for rejection.
Check that your witnesses are eligible. The document must be signed and witnessed, but parties often use witnesses who aren’t permitted. EG: an attorney cannot witness the donor’s signature due to a conflict of interest. If witness information is incorrect or missing, the LPA will not be registered.
Sign in the correct order. The signing order is critical. The donor signs first, followed by the certificate provider, then the attorneys. Once this is complete, the person registering the LPA (either the attorney or the donor) must sign again. Make sure all dates are correct and avoid signing the application page prematurely.
Try not to…
Try not to mix up your forms. Make sure that you are using the LP1F form for property and financial affairs, or the LP1H form for health decisions, and check that it’s the most recent version. Bottom right corners of each page will show you these letters if you get confused. Outdated forms or pages from different LPA types will lead to rejection.
Never ever use correcting fluid or pencil marks. Use black or blue ink. If you make an error, cross it out neatly, write the correction beside it, and initial it. Each correction must be initialled by the person making it.
Avoid making contradictions and conflicting instructions. EG: if attorneys are appointed to act “jointly and severally” do not include instructions that require a majority / joint vote. Conflicting instructions can make the LPA unworkable or invalid and will lead to rejection.
We recommend that you double check every single page, and there are x20 sheets for each application!! Alternatively call us to make an appointment.
If you want to make sure that your Lasting Powers of Attorney are completed to the highest standard, why not call in the experts at The Will Partners. Contact us to arrange a free no obligation consultation in the comfort of your own home.