How to set up a power of attorney What is power of attorney?
An LPA means someone else can make decisions for you
A power of attorney enables someone else to manage your affairs on your behalf when you are no longer able to or no longer want to. We outline the difference between a Lasting Power of Attorney (LPA) and an Enduring Power of Attorney (EPA), and Ordinary Power of Attorney (OPA), explain the different types of LPA, and when to think about setting one up.
None of us likes to think of a time when we can no longer manage our own affairs, but it’s reassuring to know that there are procedures in place which should help someone else to do it for us.
An LPA is a legal document which allows you to choose someone to make decisions for you when you no longer want to or are no longer able to. LPA replaced the previous system of Enduring Power of Attorney (EPA) in 2007, and gives your representative the right to manage your affairs and make decisions on your behalf. There are two types of LPA – one for Property and Financial Affairs and for Health and Welfare.
Property and Financial Affairs Power of Attorney
With a Property and Financial Affairs LPA you can decide to give your representative (known as your ‘attorney’) the power to make decisions about any or all of your affairs. An LPA gives your attorney the right to make decisions as if they were you, but they must also make sure they act in your best interests.
Your attorney can’t act on your behalf until the LPA is registered with the Office of the Public Guardian (OPG) in England and Wales, the body responsible for registering LPAs and EPAs, maintaining the Register of registered instruments and dealing with complaints about the conduct of attorneys. The Scottish equivalent is Continuing Power of Attorney, while the Office of Care and Protection deals with Enduring Power of Attorney in Northern Ireland, where LPA has not been introduced.
Health and Welfare LPA
A Health and Welfare LPA allows you to choose someone to make decisions about your health and personal welfare should you no longer be able to do so. You can decide to give your attorney the power to make decisions about any or all of your health and welfare matters, but your appointed attorney or attorneys will only be able to make these decisions once the LPA is registered with the OPG, and provided that you can no longer make these decisions yourself.
When to set up an LPA
Anyone aged 18 or over can make an LPA appointing one or more attorneys to act on their behalf. It is important to make the LPA while you are still capable of making decisions about who to appoint as your attorneys and what powers you want to give them. The LPA cannot be used until it is registered with the OPG, which you can do at any point after it has been made. Even after it has been registered, your attorneys will have to act within any restrictions or conditions you have set out in the LPA form.
Enduring Power of Attorney
Although LPA replaced Enduring Power of Attorney (EPA) in 2007, EPAs that were made before 1 October 2007 can still be used. EPAs must be registered with the OPG if the donor is losing mental capacity. EPA only covers property and finances.
Ordinary Power of Attorney
A third type of PoA is known as Ordinary Power of Attorney (General PoA in Scotland). This option only covers property and finances and ceases if the donor loses mental capacity. Ordinary PoA never needs to be registered with the authorities.
- For more information, call our impartial experts on the Which? Money Helpline
- Take a look at our guide to writing a will
- Read our guide to choosing a care home