Powers of Attorney help ensure your wishes are upheld if you fall ill or are otherwise unable to handle your financial affairs and welfare.
The nuances and application of Powers of Attorney can be complex, leaving many confused about the difference between a Lasting Power of Attorney (LPA) and an Enduring Power of Attorney (EPA).
Read on to learn the difference between the two and why the LPA is the key document governing the future of your financial and welfare affairs.
Lasting Power of Attorney (LPA)
Introduced in 2007, the Lasting Power of Attorney is a comprehensive legal document that allows you to appoint one or more trusted individuals, known as “attorneys,” to make decisions on your behalf.
These decisions can cover a wide range of areas, including:
- Financial Decisions: Your appointed attorneys can manage your bank accounts, investments, property, and other financial matters.
- Health and Welfare Decisions: Your attorneys can make choices about your medical treatment, living arrangements, and other personal welfare issues.
The primary advantage of an LPA is its broad scope and the ability to remain in effect even if you lose mental capacity in the future.
This ensures your wishes are upheld, even if you can no longer communicate them yourself.
Enduring Power of Attorney (EPA)
In contrast, the Enduring Power of Attorney predates the LPA and is primarily focused on financial and property-related decisions. Unlike the LPA, an EPA does not cover health and welfare choices.
It’s important to note that while new EPAs can no longer be created (having been replaced by LPAs), existing EPAs established before are still valid.
However, if the individual who created the EPA begins to lose or has lost mental capacity, the EPA must be registered with the Office of the Public Guardian.
Key Differences Between LPA and EPA
The key differences between Lasting and Enduring Powers of Attorney can be summarised as follows:
- Scope: LPAs cover both financial and health/welfare decisions, while EPAs are limited to financial and property matters.
- Registration: LPAs must be registered with the Office of the Public Guardian, while EPAs only need to be registered if the individual starts to lose or has lost mental capacity.
- Availability: New EPAs can no longer be created, as they have been superseded by the more comprehensive LPA system.
The Bottom Line
LPAs are the primary legal instrument for planning for the future and protecting rights.
At Batt Broadbent Solicitors, our team of experienced legal professionals is deeply committed to guiding you through the process of setting up an LPA or registering an existing EPA.
We’ve been serving individuals and families across Wiltshire for decades. We’ll work closely with you to understand your unique circumstances and goals, ensuring your wishes and interests are protected.
Don’t hesitate to contact the Batt Broadbent team to learn more about our expert legal services.