A lasting power of attorney (LPA) is a legal document that allows you to appoint someone to make decisions on your behalf should you become unable to do so. There are two types of LPAs in the UK: the property and financial affairs LPA, and the health and welfare LPA. While both LPAs serve similar purposes, there are some key differences between them.
Property and Financial Affairs LPA:
The property and financial affairs LPA gives your chosen attorney the power to make decisions about your money and property. This can include things like paying bills, managing your bank account, selling property, and investing your money. Your attorney will have the authority to make these decisions even if you are still able to make them yourself.
One important thing to note is that the property and financial affairs LPA can be used while you still have mental capacity, with your permission. This can be useful if you find it difficult to manage your finances or are going to be out of the country for an extended period.
Health and Welfare LPA:
The health and welfare LPA gives your chosen attorney the power to make decisions about your healthcare and wellbeing. This can include things like where you live, the type of medical treatment you receive, and the kind of social care you receive.
It's important to note that your attorney can only use the health and welfare LPA if you are unable to make the decision yourself. This means that if you have capacity, you will be the one making the decisions about your healthcare and wellbeing.
The main difference between the two types of LPAs is the area of decision-making they cover. The property and financial affairs LPA deals with decisions related to money and property, while the health and welfare LPA deals with decisions related to healthcare and wellbeing.
Another key difference is when the LPAs can be used. The property and financial affairs LPA can be used with your permission even if you still have mental capacity. On the other hand, the health and welfare LPA can only be used if you are unable to make the decision yourself.
It's also important to note that the two LPAs can be created separately or together. If you decide to create both LPAs, you can choose the same attorney for both or different attorneys for each.
In conclusion, both types of LPAs can be useful in different situations. The property and financial affairs LPA can give you peace of mind that your finances will be taken care of should you become unable to manage them yourself. The health and welfare LPA can ensure that your wishes about your medical treatment and social care are respected should you become unable to make these decisions yourself. It's important to consider your individual circumstances and needs when deciding which type of LPA, or whether to create both, is right for you.
To draft a single LPA we will charge £500 + VAT, for two LPAs (both financial and health) the cost would be £750 + VAT.
For each document to be register the OPG will charge £82.00
Our experienced team can guide you through the process in making sure you have all the information you need for executing the LPA. You can call 0800 6300 301 or fill out the online enquiry form.