Understanding the Difference: Enduring Powers of Attorney vs. Lasting Powers of Attorney
Posted on 19th February 2024
Planning for the future is an essential part of managing your affairs, especially when it comes to legal documents that ensure your wishes are honoured if you become unable to make decisions for yourself. In the realm of personal legal planning, Enduring Powers of Attorney (EPA) and Lasting Powers of Attorney (LPA) are two critical documents that serve similar purposes, yet the introduction of LPAs was a great step in future planning for people in England and Wales. In this blog, our Lasting Power of Attorney Solicitors in Preston explores the differences between EPAs and LPAs and discusses why transitioning to an LPA might be a prudent decision if you currently have an EPA.
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Enduring Powers of Attorney (EPA)
Introduced under the Enduring Powers of Attorney Act 1985, EPAs allow individuals to appoint one or more people (attorneys) to manage their financial affairs. The key feature of an EPA is that it remains valid even if the person who made it (the donor) loses mental capacity. However, EPAs must be registered with the relevant authority once the donor starts losing mental capacity.
Key Points of EPAs:
Scope:
EPAs cover financial decisions.
Activation:
They can be used both before and after the donor loses mental capacity, but they must be registered when the donor begins to lose capacity.
Jurisdiction:
EPAs were specific to England and Wales, with separate provisions in Scotland and Northern Ireland.
Lasting Powers of Attorney (LPA)
Introduced by the Mental Capacity Act 2005 and coming into effect in October 2007, LPAs expanded upon the concept of EPAs by introducing two types of powers: one for financial decisions (Property and Financial Affairs LPA) and another for health and welfare decisions (Health and Welfare LPA). Lasting Powers of Attorney replaced EPAs, although EPAs made before the deadline remain valid, providing they are completed, signed and witnessed correctly.
Key Points of LPAs:
Scope:
LPAs allow donors to appoint attorneys to make decisions about their property and financial affairs as well as their health and welfare, providing a more comprehensive coverage.
Activation:
Property and Financial Affairs LPAs can be used as soon as they are registered, with or without the donor’s loss of mental capacity, according to the donor’s wishes. Health and Welfare LPAs can only be used once the donor has lost mental capacity.
Protection:
Both types of LPAs must be registered with the Office of the Public Guardian before they can be used, ensuring oversight and protection from the outset.
Our Lasting Power of Attorney Solicitors in Preston deal with the preparation, signature and registration of the documents on your behalf, so you do not have to worry about incorrectly signed documents or issues with the registration that our team see all too often with homemade Lasting Powers of Attorney.
Why Consider Making an LPA if You Have an EPA?
Broader Coverage:
LPAs provide a more comprehensive approach to planning for incapacity. While an EPA only covers financial matters, LPAs allows you to also make provisions for your health and welfare decisions, ensuring that your personal and medical care is managed according to your preferences.
Greater Flexibility:
LPAs offer more flexibility in specifying how and when your attorneys can act on your behalf. You can include guidance on how decisions should be made, express preferences or stipulate conditions directly within the document.
Enhanced Safeguards:
The LPA registration process includes safeguards to protect against abuse. Before an LPA is registered, named individuals are notified if required, giving them an opportunity to raise concerns if they believe the LPA was set up under duress or the donor didn’t understand its implications.
Legal Clarity and Peace of Mind:
Transitioning to an LPA can provide peace of mind, knowing that both your financial affairs and personal welfare are covered comprehensively. With LPAs, there’s less ambiguity about your wishes, reducing the potential for disputes among family members or caregivers.
In addition, as LPAs are registered before use, you know that they are there as soon as required. Whereas EPAs only need to be registered when the person who made it starts to lose capacity, so there may be a delay in being able to use the document whilst the registration is attended to.
Why choose MG Legal's Lasting Power of Attorney Solicitors in Preston?
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How much does it cost to make Lasting Powers of Attorney?
Our Lasting Power of Attorney solicitors in Preston know that the cost of making LPAs can vary depending on which solicitors you instruct, however, our fees at MG Legal are fixed so that you know the cost upfront, and can budget for all the fees payable, ensuring you can make LPAs that are not breaking the bank.
Lasting Power of Attorney fixed-fees
30 minute appointment to discuss your requirements for your LPA and to ascertain capacity
Preparation of the LPA
Attendance upon you to go through and complete your LPA, including giving any advice required
Sending the document to your Attorney(s) for signature
Sending the document to the Office of the Public Guardian for registration
Arranging for collection of the original LPA following registration
One LPA £300.00 + VAT plus Registration fee - £82.00* Both LPAs £450.00 + VAT plus Registration fees - £164.00* Four LPAs £750.00 + VAT plus Registration fees - £328.00* *Unless you qualify for a fee remission or exemption
While EPAs provided a necessary means for individuals to manage their affairs in the event of losing mental capacity, the introduction of LPAs offers a more detailed, flexible, and protective framework. For those with an existing EPA, considering an LPA is a forward-thinking step that ensures comprehensive coverage of both financial and health-related decisions. It’s a move that not only aligns with current legal standards but also affords a greater sense of security and control over your future well-being. If you are considering making LPAs, consulting with Lasting Power of Attorney Solicitors will provide you with tailored advice and ensure that your documents reflect your wishes accurately and effectively.
To speak with our Lasting Power of Attorney solicitors in Preston, call 01772 783314 or email enquiries@mglegal.co.uk to speak to a member of our team within one working hour. Alternatively, pop into our offices in Preston, to chat with a member of the team.
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Tagged as: Lasting Powers of Attorney, Solicitors in Preston
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