A Lasting Power of Attorney, usually shortened to LPA, allows you to appoint people you trust to make certain decisions for you. The person making the LPA is called the donor, while the people appointed are known as attorneys.

There are two types of LPA in England and Wales. One covers property and financial affairs, while the other covers health and welfare. You can make either type or both, depending on the decisions you want your attorneys to be able to make. Our Lasting Power of Attorney guidance provides a general introduction to both documents.

Short answer: do you need both LPAs?

You are not required to make both types of LPA. They are separate legal documents, and making one does not automatically give your attorneys authority over the matters covered by the other.

Many people consider both because financial and welfare decisions can become closely connected during an illness, accident or period of declining health. For example, someone may need help paying care bills and managing their bank account, while decisions about where they live and what care they receive may also need to be made. Those responsibilities fall under different LPAs.

Making both can provide broader arrangements, but that does not mean it is the right choice for every person. Your decision should reflect your circumstances, your wishes and the authority you are comfortable giving to your chosen attorneys.

For more information, see The Financial Impact of Residential and Nursing Home Care Fees in the UK – Fortuna Wills.

What does a Property and Financial Affairs LPA cover?

A Property and Financial Affairs LPA gives your attorneys authority to deal with the financial matters specified in the document. Depending on how it is prepared and any instructions you include, this could involve managing everyday payments or dealing with more substantial assets.

Your attorneys must act in your best interests and within the authority given by the LPA. A financial LPA does not allow them to make decisions about your medical treatment, personal care or other welfare matters.

• Paying household bills and other expenses
• Managing bank or building society accounts
• Collecting a pension or benefits
• Dealing with investments
• Buying, selling or managing property

What does a Health and Welfare LPA cover?

A Health and Welfare LPA deals with personal decisions rather than money or property. It can allow your attorneys to make decisions about your care, daily routine, living arrangements and medical treatment when you cannot make the relevant decision yourself.

The document asks you to decide whether your attorneys will have authority to give or refuse consent to life-sustaining treatment on your behalf. This is a significant personal choice. The LPA does not enable an attorney to demand a particular treatment, and healthcare professionals remain responsible for deciding which treatments are clinically appropriate.

A Health and Welfare LPA does not give attorneys authority to manage bank accounts, pay bills or sell property. Those matters require appropriate authority under a Property and Financial Affairs LPA.

• Where you live and the type of care you receive
• Your daily routine, including matters such as diet and clothing
• Medical examinations and treatment
• Contact with other people
• Life-sustaining treatment, if you choose to give your attorneys that authority

When can attorneys use each type of LPA?

Both types of LPA must be registered with the Office of the Public Guardian before attorneys can use them. Signing an LPA without completing registration is not enough to make it available for use.

Once registered, a Property and Financial Affairs LPA may be used while you still have mental capacity, provided you give permission and the document does not restrict this. This can be helpful if you want practical assistance with financial tasks but remain able to make your own decisions. You continue to have control and can make decisions yourself.

A Health and Welfare LPA can only be used when you lack mental capacity to make the particular decision in question. Capacity is decision-specific and can vary over time. A diagnosis, illness or disability does not automatically mean that a person lacks capacity for every decision.

Attorneys must follow the legal principles relating to mental capacity and act in the donor’s best interests. An LPA is not authority to take over every aspect of a person’s life whenever an attorney chooses.

Can the same people act under both LPAs?

You can appoint the same attorneys under both LPAs, or choose different people for each one. Someone who is organised and confident with money may be well suited to financial responsibilities, while another person may understand your care preferences particularly well. In other families, appointing the same trusted people for both roles may be simpler.

If you appoint more than one attorney, you must decide how they will act. They may be required to make all decisions together, be allowed to act separately as well as together, or follow a combination of these arrangements for different decisions.

Think about each person’s reliability, willingness to take on the role and ability to work with any other attorneys. It is sensible to speak to prospective attorneys before naming them, so they understand what the role could involve.

Questions to consider before choosing one or both

There is no single answer that suits every family. These questions can help you identify the decisions that matter to you before seeking guidance about your arrangements.

• Who would deal with your bills, accounts or property if you could not manage them yourself?
• Who would you trust to make decisions about your care or living arrangements?
• Would you want financial help while you still had capacity, for example during a period of poor health or reduced mobility?
• Do your chosen attorneys understand your wishes and values?
• Would the same people be suitable for financial and welfare decisions, or would different attorneys be preferable?
• Are there instructions or preferences you would want recorded in either LPA?
• How should multiple attorneys make decisions and resolve practical disagreements?

Put arrangements in place before they are needed

You must have the required mental capacity when you make an LPA. It is therefore sensible to consider the documents before an urgent need arises, rather than waiting until someone is already unable to make the relevant arrangements.

Registration is also required before either type of LPA can be used. Preparing and registering the documents in advance means they can be available if circumstances change. It does not mean that attorneys under a Health and Welfare LPA can act while you can still make the decision yourself.

LPAs are planning documents, not a method of protecting assets from care fees. Questions about paying for care, estate planning and an attorney’s decision-making authority are separate matters and should be considered on their own facts.

A Property and Financial Affairs LPA and a Health and Welfare LPA do different jobs. One deals with money and property; the other deals with care, living arrangements and treatment when you cannot make the relevant decision yourself.

You may choose one or both. The right arrangement depends on the decisions you want covered, the people you trust and the authority you want them to have. Taking time to consider these points can provide clarity for you and those close to you.

If you would like to talk through the two types of LPA in plain English, Fortuna Wills offers a free, no-obligation consultation by home visit, Zoom or phone.