An LPA allows you to choose someone you trust to make decisions on your behalf if you become unable to do so yourself. However, there are two types of LPA, and it's important to understand the differences between them to make an informed decision. In this article, we will explore the two types of lasting power of attorney and their implications.
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 decisions on your behalf if you become unable to do so yourself. It is an important document to have in place, especially if you have concerns about your health or your ability to make decisions in the future.
Why is an LPA important?
There may come a time in your life when you are unable to make decisions for yourself due to illness, accident, or disability. An LPA can ensure that someone you trust is able to make decisions on your behalf, including decisions about your finances, health, and welfare. Without an LPA in place, your loved ones may have to go through a lengthy and costly court process to make decisions on your behalf.
Types of lasting power of attorney
There are two types of LPA that you can create: property and financial affairs LPA and health and welfare LPA.
Property and financial affairs LPA
A property and financial affairs LPA allows you to appoint someone to make decisions about your money and property on your behalf. This includes decisions about buying or selling property, managing your bank accounts, paying bills, and investing money.
What decisions does it cover?
A property and financial affairs LPA covers decisions about:
- Buying or selling property
- Managing bank accounts
- Paying bills
- Collecting benefits or pensions
- Investing money
- Running a business
When does it come into effect?
A property and financial affairs LPA can come into effect as soon as it is registered with the Office of the Public Guardian (OPG). This means that your appointed attorney can make decisions on your behalf while you still have mental capacity, as well as if you lose capacity in the future.
How to create a property and financial affairs LPA?
To create a property and financial affairs LPA, you will need to:
- Choose someone you trust to be your attorney.
- Complete the relevant forms from the OPG.
- Register the LPA with the OPG.
Health and welfare LPA
A health and welfare LPA covers decisions about:
- Your medical treatment
- Where you live
- The care you receive
- Your daily routine, including diet and exercise
- End-of-life decisions, including life-sustaining treatment and palliative care.
