The two types of durable powers of attorney
In the UK and around the world, people are living longer. The latest statistics show that by 2030, one in six of us will live past 60, and 70 will now be classed as the new ’65’, or the start of old age.
As more of us live to old age, the risk of becoming incapacitated for one reason or another increases, affecting our ability to make our own decisions. This can be due to old age, but also to an unexpected illness or serious accident.
We cannot be sure what the future holds. In the event of an unexpected event, the consequences on our well-being, legal status and practical affairs can be significant and create difficulties for our family members who must deal with them. However, we can prepare for this by creating a Durable Power of Attorney (LPA) in advance to manage our health, welfare and financial matters.
What is a durable power of attorney?
An LPA is a legal document that allows you (the “donor”) to appoint one or more people (called “lawyers”) to help you make decisions or to make decisions on your behalf. This gives you more control over what happens to you if you suffer an accident, illness or disorder that robs you of mental or physical abilities.
LPAs can only take effect after they are officially registered, which takes 6-8 weeks. The agent must be over 18 years of age and two or more agents may be appointed to act. They can act together or independently on some issues and independently on others. There are also no provisions providing for the establishment of a replacement representative in the event of the death of the representative.
In England and Wales there are two types of LPA:
- Property and Financial Affairs Durable Power of Attorney
- Durable Power of Attorney for Health and Welfare
It is important to note that you can enter into both types of LPA if you wish and you can appoint different lawyers for each. The LPA is a powerful legal document, and it is crucial to think carefully about who you choose as your attorney and what powers you grant them.
- A Property and Finance LPA allows a solicitor to manage your finances and make decisions about your property on your behalf. For example, paying your bills, managing your bank account, selling your property, making investments and managing your business.
- A health and welfare LPA allows a lawyer to make decisions about your health and welfare on your behalf. This may include choosing where you should live, what medical treatment you will receive, what you should eat, what activities you should participate in, and end-of-life decisions.
The main differences between the two final powers of attorney
The type of decisions the attorney is authorized to make on your behalf is what distinguishes the two LPAs.
A real estate and financial affairs LPA allows the attorney to only make decisions regarding your finances and property. They can’t go bankrupt and you can create a trust company. Whereas a health and welfare LPA allows the lawyer to only make decisions regarding your health and welfare.
Another difference is when the LPA can be used. The Health and Welfare APL can only be used if you lose capacity, unlike the Real Estate and Financial Affairs APL, which can be used while you still have mental capacity.
So be sure to consider your options carefully and choose the right type of LPA for your needs.
What are the advantages of creating a durable power of attorney?
An LPA can offer several benefits to protect you and your loved ones, including: –
- Ensuring your wishes are respected
- Avoiding legal proceedings
- Peace of mind
- Flexibility in your choices
- Control your assets
It is essential to evaluate your options and seek professional advice if you have any questions or concerns.
Why hire a lawyer to establish your durable power of attorney?
Legal expertise and personalized advice: A lawyer is a legal expert who can guide you through the complex legal process of creating an LPA. They can provide you with specialist advice and ensure that your LPA meets all legal requirements and suits your specific needs.
They can help protect you against fraud and abuse by ensuring that the LPA is executed correctly and that the person you choose to act as your agent is trustworthy and competent.
Additionally, using a lawyer reduces the chances of making a mistake that could render your LPA invalid.
Overall, using a lawyer to create your LPA can ensure that your wishes are properly recorded and legally binding, giving you peace of mind and protection from potential risks. Thomas & Thomas Solicitors, one of South Wales’ leading law firms, offers the only professional Lasting Power of Attorney service in the Maesteg area. For more advice on LPAs, contact the expert team.
