A Lasting Power of Attorney (LPA) is often referred to as a single, specific document that gives your chosen attorney the ability to make important decisions on your behalf. However, there are actually two types of LPA, and although they work in a similar way, they provide your attorney with a very different set of powers. One is called a Health & Welfare LPA, and the other a Property & Financial Affairs LPA. You can make both documents separately, but normally they are made at the same time to ensure you can be fully looked after in your time of need. At Michael Usher Wills & Estate Planning we offer a discount when both LPAs are made together, making this the most cost-effective approach. In this guide, we’ll explain how the two different LPAs work, what powers they each provide, and when you would need them.
What Powers Does a Health & Welfare Lasting Power of Attorney Provide?
With a Health & Welfare LPA, your chosen attorney(s) will be able to make decisions regarding your day-to-day care, such as what you wear and eat, and your medical care. They’ll also be able to decide where you should live – for example, if you’re in long-term care but you and your family decide you’d be happier living with a relative, a Health & Welfare LPA will give your attorney the power to make that decision. Without one, your care home could legally have the right to force you to stay. If you think that sounds like it wouldn’t happen in real life, click here, and then scroll down to the story about Ylenia Angeli, who was arrested for trying to take her mother out of a care home even though her mother wished to leave!
What Powers Does a Property & Financial Affairs Lasting Power of Attorney Provide?
With a Property & Financial Affairs LPA, your chosen attorney(s) will be able to make decisions regarding your finances and assets. They’ll be able to access your bank accounts to provide you with the money you need to fund your desired lifestyle. They’ll also be able to manage other important areas of your life, such as your insurance policies, utility bills, pensions, benefits, tax, debts, and property. Another hugely beneficial side to this type of LPA, is that it allows those members of your family who rely on your bank accounts, insurance policies, or assets, to have access to them. Without one, your loved ones won’t be able to access anything that’s in your sole name, which can cause all sorts of problems. To learn how stressful this situation can be in real life, read Good Morning Britain host Kate Garraway’s story here.
How Does Each Type of Lasting Power of Attorney Work?
Both types of LPA must be made whilst you still have mental capacity, in other words, these documents should be made well in advance of when you may need them. It’s not uncommon for people to make their LPA ten or twenty years before any signs of poor health. Having these documents in place early will give you the peace of mind you need to get on and enjoy life! If you do leave it too late, your loved ones will have to go through lengthy, complex, and expensive court procedures to try and gain sufficient powers to look after you, and even then they may not be granted the full powers of an LPA.
Although both types of LPA must be made in advance, they will usually only come into effect when you need them too. However, there is one slight difference here – a Property & Financial Affairs LPA can come into effect before you lose your mental capacity if you want it to. For example, if you reach an age where you would rather not deal with the stress of managing your finances and property, you can ask your attorney to step in. On the other hand, a Health & Welfare LPA can only come into effect once you’ve lost the mental capacity to look after yourself properly.
When choosing your attorneys, you can either choose the same person for both of your LPAs or you can split the powers between two or more people. For example, one of your children may be better suited to handling your day-to-day care, whereas another may feel more confident managing your property and finances. It’s also a good idea to select a backup attorney in case your chosen attorney is unable or unwilling to take on the responsibility when the time comes.
The Bottom Line
There are two types of Lasting Power of Attorney, each designed to give your chosen attorney a different set of powers. A Health & Welfare LPA enables your attorney(s) to make decisions regarding your day-to-day care, living arrangements and medical care, whereas a Property & Financial Affairs LPA gives your attorney the power to make decisions regarding things like your bank accounts, insurance policies and assets. Both LPAs together allow your loved ones to manage all areas of your life so you can be confident that decisions will always be made in your best interests.
Here at Michael Usher Wills & Estate Planning, we’ve been helping our local community with LPAs for over 30 years. Not only is it easier to make both LPAs at the same time, but we also offer a discount when doing this, making it the most popular and cost-effective option. Please get in touch and our friendly team of experts will answer all of 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
You are more than welcome to come into our office, but we can also make your Lasting Power of Attorney remotely if you’d prefer. 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, please click on the link below for more information or call us to get started.
