Published on: 11th November 2024

EPAs vs LPAs – What’s the difference and why does it matter?

A power of attorney is a document which enables someone else to act on your behalf. The donor (person making the document) can appoint attorneys (trusted individuals) to carry out important tasks should the donor no longer be capable.

Enduring Powers of Attorney (EPAs) only relate to property and financial matters, such as paying bills and managing bank accounts. They had to be registered by an attorney rather than the donor, and could only be registered once the donor started to lose mental capacity. Although EPAs can still be used now (subject to them being signed before 01 October 2007), new ones cannot be created. They have been replaced by Lasting Powers of Attorney (LPAs).

LPAs documents are split into two types: Property & Financial affairs and Health & Welfare. Donors can create one type, or both types, and appoint different attorneys should they feel certain people may be better at some decisions than others. The key difference is that they can be registered immediately by the donor, and then they are ready to be used if and when they are needed.

LPAs were introduced to address certain perceived issues with EPAs, for instance:

• Attorneys acting with an EPA could not deal with health and welfare concerns, such as medical decisions and care choices.
  
  
• Many believed that EPAs were abused (and as a result, there are greater safeguarding checks in place with LPAs).
  
  
• Having to wait until an individual started to lose mental capacity before an EPA could be registered, meant that often when they were needed the most, they were not available.
  
  

Although EPAs can still be used, the issues above outline some of the reasons why it could be worth considering creating LPAs instead.

Creating LPAs when you are fit and healthy and do not need them provides peace of mind and ensures that should you need them in the future, they are ready. It is never nice to think about losing mental capacity or losing the ability to take care of your personal matters, but having LPAs in place enables you to choose people that you trust to look after your affairs if you are ever unable to.

If you would like to speak with one of our Consultants to discuss any of the issues raised in this article or any other estate planning topic please telephone 01732 868190 or click here.

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If you wish to give instructions or require general information about our Wills, Lasting Powers of Attorney, or Trusts then we will carry out a telephone or Zoom appointment.

However, if you wish to give instructions to one of our Consultants and you feel that you can only do this at a Face to Face meeting then we are offering, at our Consultant’s discretion, a limited number of Face to Face appointments in most of the areas we normally cover. To see the areas we normally cover please click here.

To arrange an appointment please telephone 01732 868190 or click here.

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