A Lasting Power of Attorney (LPA) allows you to choose trusted people to make important decisions on your behalf if you lose mental capacity. There are two main types: one for health and welfare and another for property and finances. Let’s dive into the differences.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney (LPA) is a legal document that allows you to appoint someone you trust to make important decisions on your behalf. It ensures that if you ever lose mental capacity due to illness, injury, or old age, your finances, health, and personal welfare are managed by someone who understands your wishes. Having an LPA in place gives you peace of mind, knowing that key decisions won’t be left to chance.
How many types of Lasting Power of Attorney are there?
There are two types of LPA, each covering different aspects of your life. Many people choose to have both to ensure full protection over their affairs.
Health and welfare LPA: Covers medical care, living arrangements, and end-of-life decisions. This helps you make decisions you can no longer make them yourself.
Property and financial affairs LPA: Allows your attorney(s) to manage your bank accounts, bills and property. They can deal with any other financial matters if you need support.
💡Editor's insight: "Some people don’t include important information or use incorrect wording on an LPA application. This can lead to delays and rejection of your application. A Lasting Power of Attorney solicitor can help make sure the LPA is correct, legal and make sure your wishes are followed.”
Health and Welfare LPA explained
A Health and Welfare LPA allows your attorney to make decisions about your medical care and wellbeing. They can help you in daily life if you can't due to illness, injury, or conditions like dementia. This type of LPA only takes effect when you lose mental capacity, meaning you remain in full control of your own decisions for as long as possible.
Key features and benefits
Medical treatment decisions: Your attorney can make choices about what treatments you receive. This could be surgery, medication, and ongoing care.
Daily routine and wellbeing: Covers decisions about diet, personal care, and social activities. This can make sure your day-to-day needs are met.
Care home or assisted living choices: Your attorney can decide whether you need residential care or support at home. This will make sure you receive the right level of care.
Life-sustaining treatment: Your attorney can give or refuse consent for treatments. This could be ventilation or resuscitation, which could prolong your life.
Who should consider a health and welfare LPA?
Anyone who wants to stay in control of their care decisions should consider this LPA. It’s important if:
You want family or a trusted friend to make health decisions instead of medical professionals or social services.
You have strong views about medical treatment, care home living, or end-of-life care.
You are concerned about age-related illnesses that could affect decision-making in the future.
Property and Financial Affairs LPA explained
A Property and Financial Affairs LPA allows your attorney to make decisions if you can’t do so. This could be managing your money, property, and financial responsibilities. Unlike a health and welfare LPA, this type of LPA can be used immediately if you choose. This makes it helpful if you need temporary financial support due to illness or being abroad.
Key features and benefits
Banking and bill payments: Your attorney can access bank accounts, pay bills, and manage day-to-day expenses.
Managing property and investments: They can buy, sell, or rent out property. They can manage savings and investments, and make sure to pay mortgages or rent.
Pension and benefits collection: Make sure you continue to receive and manage pension payments. They can also handle state benefits, and any other income.
Legal and tax responsibilities: Your attorney can handle tax affairs and legal documents. They can keep your finances in order.
Who should consider a property and financial affairs LPA?
This LPA is useful for:
People who own property, investments, or have several bank accounts.
Those who travel often or live abroad and need someone to manage finances in the UK.
Individuals who want peace of mind that their finances will be managed if they can't manage them.
What type of LPA do you need?
The type of LPA you need depends on your circumstances. Many people opt for both LPAs to offer legal protection for their future needs:
If you want someone to handle your medical and care decisions, a Health and Welfare LPA is essential.
If you want someone to manage your financial and property affairs, you need a Property and Financial Affairs LPA.
Why having both offers full protection
While some people choose one type of LPA, having both provides the best protection. A health and welfare LPA makes sure your care and wellbeing are managed. A property and financial affairs LPA protects your money and valuables. Together, they make sure that every aspect of your life is taken care of by people you trust.
Is there a third type of Lasting Power of Attorney?
No, there are only two official types of LPA. Before LPAs were introduced in 2007, there was an older form called an Enduring Power of Attorney (EPA). An EPA was the legal document that allowed someone to manage a person’s financial and property affairs.
Although you can't create EPAs, existing EPAs are still valid. If someone makes one before October 1, 2007, their attorney can still use it. But if the donor starts to lose mental capacity, the EPA must be registered with the Office of the Public Guardian (OPG) before it can be used.
💡Editor's insight: "A lot of people get confused that an EPA covers health and welfare decisions. But it mainly covers decisions about property and finances. So if you or a loved one have an EPA, it may be worth reviewing it to see if it still meets your needs. If you want to include decisions about health, you may need to set up a Health and Welfare LPA alongside it.”
FAQs
Can I have both types of LPA?
Yes, many people choose to have both a Health and Welfare LPA and a Property and Financial Affairs LPA. The two types of lasting power of attorney offer you full protection.
Does an LPA need to be registered?
Yes, you must register an LPA with the Office of the Public Guardian (OPG) before it can be used. You can learn more in our guide to how to register an LPA.
Can an LPA be changed once registered?
No, you can’t amend an existing LPA, but you can cancel it and create a new one.
Final thoughts
A Lasting Power of Attorney is an essential legal tool for planning. There are two types of LPA, each serving a purpose. Many people opt for both LPAs to make sure there’s full protection over their financial and personal affairs. If you’re considering setting up an LPA, we can offer you legal advice to make sure it’s tailored to your needs.
References
Office of the Public Guardian by Gov.UK
Disclaimer: This article only provides general information and does not constitute professional advice. For any specific questions, consult a qualified legal professional.