What is an LPA?

The legislation relating to Lasting Powers of Attorney (LPAs) came into force from 1st October 2007 and replaced the previous regime relating to Enduring Powers of Attorney (EPAs) at that time.

An LPA is a signed document that comes into effect in the event of you not being able to manage your own affairs, for whatever reason, at a stage in your life.

The LPA allows you to appoint one or more trusted individuals to manage your affairs and make decisions for you at a time in the future when you may not be able to do so.

Although we do not like to think about it, we do not know what is around the corner and should you find yourself in a position where you cannot conduct your own affairs, perhaps due to illness or incapacitation, the LPA will come into force and the appointed individuals will take responsibility for your affairs. They will make decisions on your behalf and manage areas such as your finances and property or your personal health and welfare.

There are two types of LPA:

1. A ‘financial’ LPA that appoints an individual to manage your property and financial affairs when you cannot act for yourself; and
   
   
2. A ‘welfare’ LPA that appoints an individual to take responsibilities for decisions affecting your health and welfare where you have lost the ability to act for yourself.

There is also a General Power of Attorney (GPA) which is a general authorisation or power to act where you want someone to act for you over a specific event or for a specific period, or even generally in relation to certain matters. For example, if you spend a great deal of time abroad you may wish to appoint an individual or individuals to act on your behalf regarding your financial affairs, for example managing bills or acting for you in selling a property. A GPA would provide the opportunity to do this. The huge disadvantage of a GPA is that it ceases to have an effect if you lose mental capacity.

The formal name for the ‘financial’ LPA (or ‘LPA PA’) is a property and affairs LPA. It is a great way to protect your assets for your lifetime and so provide you with peace of mind. By putting in place an LPA NOW you are in control and YOU decide who you want to take responsibility for your affairs and who will help to keep your assets safe.

Although we do not like to think about tragic events coming into our lives, there is a chance that you could suffer a tragic accident at any stage in your life. The formal name for the ‘welfare’ LPA is a personal welfare LPA (or ‘LPA PW’). It puts in place the mechanism for ensuring that you have a trusted individual making decisions regarding your treatment on your behalf.