50,000 LPAs Rejected Last Year: The Costly Mistakes You Can Avoid to get yours approved

In the past year alone, over 50,000 applications for Lasting Power of Attorney (LPA) were rejected by the Office of the Public Guardian (OPG) due to various errors. These mistakes can be costly and time-consuming, with rejected applications requiring resubmission alongside additional fees. Given that error-free processing already takes up to 16 weeks, the importance for accuracy cannot be overstated. Below, we unravel the common reasons behind these rejections and provide practical advice to help you sidestep such pitfalls.

Lasting Power of Attorney (LPA)

A Lasting Power of Attorney is a vital legal document empowering one individual (the donor) to designate another (the attorney or attorneys) to make decisions on their behalf. However, it’s essential to establish an LPA while the donor retains mental capacity – the ability to comprehend, deliberate, and make decisions independently.

In England and Wales, LPAs are categorised into two distinct types:

1. Property and Financial Affairs
• Grants authority to manage financial matters, such as banking, property transactions, and bill payments.
2. Health and Welfare
• Entrusts decisions related to medical care, treatment, and living arrangements.

For further insight, consider exploring our post about Essential Reasons to obtain a Lasting Power of Attorney.

A Sobering Statistic: 50,000+ Applications Derailed

A Freedom of Information request by Which to the Ministry of Justice revealed that 50,918 LPA submissions were rejected in the 2023-24 fiscal year alone, with 60% pertaining to property and financial affairs. Over five years, a staggering total of 162,023 applications were declined.

Annual Breakdown of Rejections

Consequences of a Rejected LPA

Registering a Lasting Power of Attorney costs £82, which amounts to £164 if registering both a Property and Financial Affairs LPA and a Health and Welfare LPA. When there are mistakes, the application will be rejected, meaning you will need to apply again. This resubmission must be done within three months, accompanied by an additional fee of £41 per LPA document.

Even approved LPAs are not immune to errors. For instance, minor discrepancies such as a misspelt name (e.g., “Anne” instead of “Ann”) might escape OPG scrutiny but could lead to rejection by financial institutions like banks when attempting to utilise the document.

How to Get it Right: Do’s and Don’ts for LPA Applications

Crafting a flawless LPA application requires meticulous attention to detail. Below, we outline essential tips to ensure your submission progresses without a hitch.

Do’s

1. Utilise Full Names
• Verify that names, birthdates, and addresses are accurate. Avoid using initials or omitting middle names, as these are frequent causes of rejection.
2. Confirm Witness Eligibility
• Witnesses must meet specific criteria. For example, an attorney cannot serve as a witness to the donor’s signature due to potential conflicts of interest.
3. Follow the Signing Sequence
• The donor signs first, followed by the certificate provider and then the attorneys. Ensure all signatures are dated accurately and avoid signing the application page prematurely.

Don’ts

1. Use the Wrong Forms
• Ensure you’re using the LP1F form for financial affairs or the LP1H form for health decisions. Outdated forms or a mix of pages from different documents will result in rejection.
2. Create Contradictions
• Avoid conflicting instructions. For instance, if attorneys are meant to act “jointly and severally,” do not impose requirements for majority votes. Contradictions can render the LPA invalid.
3. Skip a Detailed Review
• Enlist a trusted individual to scrutinise the application or consult a professional. Specialist services, such as those offered by Futura Planning can also review your LPA for potential errors, or handle the entire application process for you.

In Conclusion

Creating an LPA truly is a wise step in safeguarding your future decisions. By adhering to these guidelines and double-checking every detail, you can ensure your application is processed smoothly and avoid unnecessary delays or costs.