A lasting power of attorney (LPA) is a legal document that gives someone you appoint as your “attorney” the legal power to make decisions on your behalf in certain circumstances. Although most people think about creating powers of attorney when they get older, the reality is that all of us can benefit from having these kinds of agreements in place.
After all, you never know what might happen in your life. If you find yourself incapacitated for any reason, whether due to illness or injury, it can be comforting to know that someone you trust is able to handle certain aspects of your life for you.
Before you start looking for solicitors to help you create your LPA though, it’s important to understand the two types of LPA we have in England and Wales:
- Property and financial affairs
- Health and welfare
Let’s look at each in turn.
Property and financial affairs LPA
As the name suggests, this kind of LPA allows your attorney to act in relation to your finances and property. Essentially, this arrangement allows the person you choose as your attorney to manage your money and other financial affairs.
Normally this means that, should the LPA be activated, they will have access to your bank account so that they can pay bills and other expenses on your behalf. It also means that should it be necessary, they could sell your property (if you own one) to cover ongoing expenses like long-term care.
Health and welfare LPA
This type of LPA means that your attorney can make decisions about your healthcare, medical treatment and other care you receive. This means if you were to be in an accident, or develop a long-term condition like dementia that affected your mental capacity, your attorney could make decisions about what care home you were put in, or what medical support you should receive.
There is a crucial difference between the health and welfare LPA and property and financial affairs LPA though: the health and welfare LPA can only be activated if you lose the mental capacity to make decisions for yourself.
By contrast, the property and financial affairs LPA can be activated while you still have mental capacity. It might be that you need a family member to go to the bank on your behalf because your mobility is restricted, for instance, rather than because you are unable to make your own financial decisions.
While you can create LPAs by yourself, as these are important legal documents, it is always advisable to work with a solicitor who can help you understand LPAs, as well as create them and register them with the Office of the Public Guardian.
Who can be my attorney?
You can choose anyone to be your attorney under either a property and financial affairs or a health and welfare LPA. However, you obviously want to think carefully about who you appoint given the decisions they will potentially need to make on your behalf.
Many people choose a spouse, partner, child or another close relative as their attorney. You can appoint more than one person to be your attorney. So, for instance, if you have three children you may appoint all of them as your attorneys.
When you set up your LPAs, you may also want to discuss your wishes with the person, or people, you appoint as your attorneys. This will hopefully make it easier for them to make decisions on your behalf should they ever have to.