You may be familiar with the general concept of a lasting power of attorney, or LPA, but were you aware that these legal documents actually come in two categories? It is important to understand the difference before making any application.
What Is an LPA?
An LPA is a document setting out who has the power to make decisions for you if you are mentally incapacitated, such as if you develop dementia. You can find advice on applying for an LPA online, including the different types, either through the official government website or from experts such as those at https://powerofattorneyonline.co.uk/.
Why Are There Different Types of LPA?
Mental capacity is not a one-size-fits-all category. Someone may be able to make personal decisions about their health whilst not being capable of more complex financial decisions. Also, the person you trust with your medical decisions may not be the same person you trust with your money. Choosing a type of LPA is one of the first steps to applying.
Property and Financial Affairs
If your LPA is specifically for property and financial affairs, it means your designated attorney will be responsible for managing your bank accounts, pension, investments and other assets as well as any debts. They can choose to sell your property. To ensure your chosen attorney is fit for this role, they will need to be free from debt themselves, including not having been declared bankrupt.
Health and Welfare
The second type of LPA is the one responsible for making decisions about your health and welfare. Someone who is mentally incapacitated may not be able to manage normal activities of daily living, such as personal hygiene or eating regular meals, in which case they need an at-home carer or to move to a supported living facility. The chosen attorney will be able to make these kinds of decisions as well as those around medical treatment and even end-of-life care.
Understanding the difference between the two types of LPA is essential if you want to ensure that your wishes are honoured should you become incapacitated.
