Lasting Powers of Attorney

What is an LPA?

Lasting Powers of Attorney (LPA) are legal documents which allow you to appoint people you trust to act for you in circumstances where you may not be able to make decisions yourself. This could be as a result of an accident, injury or perhaps an illness like Alzheimer’s or dementia.

What is an attorney?

The person(s) appointed, known as the attorney(s), can make decisions on your behalf regarding your finances, property, and/or health and welfare. The types of decisions will depend on which LPA you have created and the wishes you have included.

When should I make one?

It is important to make an LPA while you are still mentally capable of making decisions for yourself. Once you lose capacity, it may be too late to create an LPA. In cases where there are no LPAs in place your loved ones would have to look to obtain a court order from the Court of Protection to gain access to any of your finances as these will likely be frozen after you lost capacity as well as to make decisions on your behalf. Obtaining an order from the court can be notoriously time consuming and expensive.

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Lasting Powers of Attorney vs Deputyship

Watch our video to find out the key differences.

The Different Types of Lasting Powers of Attorney

Property and Finance

This allows your attorney(s) to manage your finances, such as paying bills or selling your home. The attorney appointed under a P&F LPA can have the power to manage the individual's bank accounts, pay bills, collect benefits, sell property, make investments, and deal with any other financial matters. It is important to note that the attorney is not permitted to make decisions about the individual's health and welfare; this would require a separate Health and Welfare LPA.

Health and Welfare

This allows your attorney(s) to make decisions regarding your medical treatment and daily care, such as where you live and what kind of care you receive. Creating an H&W LPA is important for individuals who want to ensure that their wishes are respected and that they receive the kind of care they desire if they become unable to express their preferences themselves.

Business

Specifically deals with decisions regarding a business or commercial operation. Attorneys can make important business decisions on your behalf in the event that you become unable to do so due to mental or physical incapacity. Attorney(s) can have the power to manage the business finances, enter into contracts, make investments, deal with suppliers, and even make strategic decisions such as mergers and acquisitions.