Powers of Attorney are designed to allow trusted figures to make decisions for you if you are unable to do so on your own.
In England and Wales, the most common types are Lasting Powers of Attorney (LPAs) and Enduring Powers of Attorney (EPAs).
These representatives can play a vital role in planning for your future. But while LPAs and EPAs serve similar purposes, there are important legal distinctions between them. That’s what we’ll cover in this mini guide.
The key differences of LPAs and EPAs
Scope of authority
This is the most important difference between the two positions. While an EPA only allows an attorney to manage a donor’s (the person who grants authority to an attorney to manage their legal affairs) property and financial affairs, LPAs have a wider scope and are concerned with property and financial affairs, as well as health and welfare.
Property and financial affairs may include managing bank accounts or paying bills, while health and welfare encompasses decisions about care, medical treatment, and the daily routine of the donor.
Registration requirements
How the two documents are registered and permitted to be used differs.
An EPA – where the donor still has sufficient mental capacity – can be used as soon as it is signed. Registration with the Office of the Public Guardian (OPG) is only required once the donor begins to lose capacity. In contrast, an LPA is required to be registered with the OPG in order to be valid, irrespective of whether the donor still has the required mental capacity.
Flexibility and control
LPAs offer greater protection in this area. Under an LPA, a donor includes detailed instructions, and preferences, as well as restrictions on an attorney’s actions. EPAs generally offer less opportunity for tailored control.
Creation dates
LPAs officially replace EPAs in October 2007. However, existing EPAs that were correctly drafted and signed before this date remain legally valid.
Mental capacity
Note that LPAs require an independent certificate provider to confirm that the donor understands the document at the time it is created. Older EPAs did not have the same strict requirement.
At Bennett Smith Solicitors, North Wales-located, we advise clients on both existing EPAs and the creation of LPAs. Call our friendly team today on 01248 679 000 for more information.
