How Many Types of Lasting Power of Attorney are There?

A Lasting Power of Attorney is a legal document that allows you to appoint one or more trusted people (attorneys) to make decisions on your behalf should you lose the mental capacity to do so.

There are two types of LPAs, one for health and welfare, covering decisions about medical care, daily routines, and life-sustaining treatment, and one for property and financial affairs, which manages finances, such as paying bills or selling property.

An LPA ensures that your wishes are followed and provides peace of mind that someone you trust will act in your best interests.

This blog will answer some common questions about Lasting Power of Attorneys. Please be aware that this blog is for informational purposes only and should not be taken as legal advice.

What are the two types of Lasting Power of Attorney?

There are two main types of Lasting Power of Attorney. The first is the Property and Financial Affairs LPA, which allows an appointed attorney to manage your financial matters.

This can include handling bank accounts, paying bills, managing benefits, or selling property.

It can be used as soon as it is registered, even if you still have mental capacity, provided you consent.

The second type is the Health and Welfare LPA, which covers decisions related to medical treatment, daily care, and living arrangements.

Unlike the financial LPA, this type only comes into effect if you lose the capacity to make your own decisions.

Can I have both types of LPA in place?

Yes, you can have both types of Lasting Power of Attorney in place at the same time.

Having both types of LPA in place ensures all of your affairs will be managed in line with your wishes, should you lose mental capacity.

The financial lasting power of attorney can be activated immediately after registration, if you choose, to assist with complex or burdensome financial tasks even if you still have mental capacity.

The lasting power of attorney for health and welfare, however, only takes effect when you are no longer capable of making your own decisions. It covers areas such as medical care, daily routines, and life-sustaining treatment preferences.

Registering the two different types of power of attorney with the Office of the Public Guardian ensures that your chosen attorneys can act in your best interests without delay.

What is a Business Lasting Power of Attorney?

A Business Lasting Power of Attorney allows you to appoint one or more trusted individuals to manage your business affairs if you become unable to do so due to illness or loss of mental capacity.

This LPA can help ensure continuity in business operations and protect your company from disruption or financial risk.

A Business LPA can be tailored to your specific needs, giving the attorney powers to make decisions such as signing contracts, handling payroll, or managing assets.

This helps ensure that your business continues to run smoothly in the hands of trusted individuals.

Without a Business LPA, decision-making may be delayed while a court-appointed deputy is sought, which could impact your business.

Registering a Business LPA with the Office of the Public Guardian helps ensure seamless management in the event of unforeseen circumstances.

What happens if I don’t have a Lasting Power of Attorney?

If you don’t have a Lasting Power of Attorney and lose mental capacity, your loved ones may face significant challenges when making decisions on your behalf.

Without an LPA, no one automatically has the legal authority to manage your affairs, even if they are your family members. This can lead to delays, stress, and costly legal proceedings as they must apply to the Court of Protection to be appointed as a deputy.

A court-appointed deputy may not have the same insight into your preferences or act as quickly as an attorney chosen by you in advance. The process can be time-consuming and expensive and may result in someone less suitable making decisions about your health, welfare, or financial matters.

Having both LPA types ensures that trusted individuals can act on your behalf, preserving your wishes and providing reassurance for your loved ones during difficult times.

Speak to our Lasting Power of Attorney solicitors in Bristol

To book a free initial consultation with our specialist LPA solicitors in Chew MagnaKingswood or Westbury-on-Trym and the wider Bristol area, please get in touch today.

You can use the contact details for each office or, alternatively, fill in the enquiry form on the right-hand side of the page to request a call back.