Legal specialist in providing Later Life estate planning solutions and advising vulnerable clients.

What is a Lasting Power of Attorney

A Lasting Power of Attorney (LPA) is a legal authority to make certain decisions on behalf of someone who is unable to make those decisions for themselves. Before they lose mental capacity, the 'donor' can make an LPA by completing the necessary forms in which they appoint one or more 'attorneys'. These documents are then signed in the presence of a witness.

The appointed attorney does not need to have any legal experience or qualifications. However, they must act in the donor's best interests and are accountable in law.

If a donor does not have an LPA in place when they lose mental capacity, key decisions about their healthcare, finances, property and lifestyle can be made by third parties such as Social Services.

Two types of LPA (and why you need both of them)

There are two types of LPA:

1. A property and financial LPA gives the attorney the right to make decisions about the donor's finances and property (e.g., accessing bank accounts to pay care fees or releasing equity from a house)
2. A health and welfare LPA gives the attorney the right to make decisions about the donor's healthcare and lifestyle (e.g., which care home they should live in and what diet they should follow)

If you were to only have a financial LPA in place, you might have to compete with third parties, such as social services, the NHS and local authorities, over what’s in your loved one’s best interests for their health and welfare.

That’s why I explain to clients that financial and health and welfare LPAs are two sides of the same coin. Securing both forms of LPA will help you to both pay for your loved one’s care and determine in which care home they will stay.

For examples of what can happen if you take out just one type of LPA, request a free copy of my Guide to Lasting Powers of Attorney.

Why acting early is recommended

While some illnesses (e.g., dementia) can progress slowly, an accident can happen at any time. When you no longer have mental capacity, you lose the right to appoint an attorney because you are regarded as being unable to make that choice.

You can apply for a Lasting Power of Attorney before you start to lose your mental capacity, and there is no disadvantage to doing so.

As soon as a financial Lasting Power of Attorney is in place, your attorney will be permitted to use their authority to act on your behalf providing they obtain your approval.

In contrast, a health and welfare Lasting Power of Attorney only becomes active when you no longer have the capacity to make decisions for yourself.