A Power of Attorney is a legal document that gives someone you trust the power to make important decisions on your behalf if you’re ever unable to do so yourself. You can choose one or more attorneys and give them the power to make decisions regarding your healthcare, welfare, property and finances.
There are three types of Power of Attorney – a Lasting Power of Attorney (LPA), an Enduring Power of Attorney (EPA), and an Ordinary Power of Attorney (OPA). In this guide, we’ll discuss what each one is so you can decide which is right for you. If you become incapacitated or unconscious without a Power of Attorney in place, all decisions will be made by social services and the state – leaving your loved ones powerless to help you and unable to access important accounts and policies they may rely on.
You can only make a Power of Attorney whilst you still have the mental capacity to make decisions for yourself, so it’s important you act now otherwise by the time you need one it’ll be too late.
What Is A Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney is the most common form of Power of Attorney. It has no expiry date and it will come into effect either when you give your permission or once you’ve lost sufficient mental capacity to look after your affairs. An LPA must be registered with the Office of the Public Guardian, which can be done as soon as the document is made to ensure you can be looked after instantly and seamlessly in your time of need.
There are two types of LPA each giving your attorney a different set of powers. It’s most common and more cost-effective to set them both up at the same time.
Property & Financial Affairs LPA
This document gives your attorney(s) the power to handle your property and finances. It can be especially useful for families who rely on accounts, policies, and assets that are in your sole name, as without one they would be unable to access these. Your attorney will be able to manage things like:
- insurance policies and utility bills
- bank and building society accounts
- pensions, benefits, tax, and debts
- selling or buying property when necessary
Health & Welfare LPA
This document gives your attorney(s) the power to make decisions regarding your health and welfare – allowing you to be looked after by people you trust. This type of LPA will only come into effect once you’ve lost sufficient mental capacity but it must be made in advance. Your attorney will be able to make decisions about things like:
- where you should live
- your day to day care
- what medical treatment you should receive
- what general healthcare you should receive
To learn more about what an LPA is and how they work click here.
What Is An Enduring Power of Attorney (EPA)?
Enduring Power of Attorneys were replaced with Lasting Power of Attorneys in 2007. If you have an EPA, it can still be used, but it only provides your attorney with limited powers regarding your property and finances – if you would like them to be able to handle your health and welfare you’ll need to take out a Health & Welfare LPA.
Unlike an LPA, an EPA can only be registered once you lose your mental capacity, so we advise you to replace it with a Property & Financial Affairs LPA anyway so you can register the document in advance to prevent stressful delays in your time of need.
What Is An Ordinary Power of Attorney (OPA)?
An Ordinary Power of Attorney gives your attorney(s) the power to handle your affairs for a specific period of time. These documents are generally used if you’re temporarily injured and therefore unable to keep on top of things, or if you plan to travel abroad for a long time. You can restrict the powers you give to your attorney, and unlike an LPA, the document does not have to be registered. An OPA will expire if you lose your mental capacity so these cannot be used instead of an LPA.
The Bottom Line
There are three types of Power of Attorney, the most common being a Lasting Power of Attorney (LPA). There are two types of LPA, one allowing your attorney to make decisions regarding your property and finances and the other your health and welfare. Most people take out both LPAs together as this is the most cost-effective option. You must make an LPA before you lose the mental capacity to handle your own affairs, so it’s important you act now otherwise by the time you need one it could be too late. Without an LPA, personal decisions will be made by social services and the state, leaving your loved ones unable to look after you or access important accounts, policies, and assets that are in your sole name.
Here at Michael Usher Wills & Estate Planning, we’ve been helping our local community with LPAs for 30 years. Please get in touch and our friendly team of experts will answer all your questions for free. Call us on one of the numbers below or book a FREE consultation here. We look forward to helping you and making sure you and your family are fully protected.
Camberley: 01276 691979
COVID-19 Update
Due to the current situation, you are now able to make an LPA with us remotely for your own safety and convenience. The article below details how this works for our Wills service but the process is very similar when making an LPA. The only difference is that you require just one witness when signing your LPA – we can act as your witness if you need us to. If you would like to make your LPA remotely, click on the article below for more information or call us and we’ll explain how it works.
