Enduring Power of Attorney vs Lasting Power of Attorney: Understanding the Key Differences

Th12 19 2024

Enduring Power of Attorney (EPA) and Lasting Power of Attorney (LPA) are both legal documents that allow you to appoint someone to make decisions on your behalf. However, there are crucial distinctions between the two that you need to understand. This article will delve into the Enduring Power Of Attorney Vs Lasting Power Of Attorney, outlining their key differences and helping you choose the right one for your needs.

What is an Enduring Power of Attorney (EPA)?

An Enduring Power of Attorney (EPA) was a legal document used in England and Wales that allowed an individual (the “donor”) to appoint another person (the “attorney”) to manage their financial affairs. It was possible to create an EPA while still having mental capacity, and it could be used both while the donor had capacity and if they later lost capacity. However, EPAs are no longer being created.

What is a Lasting Power of Attorney (LPA)?

A Lasting Power of Attorney (LPA) replaced EPAs in England and Wales. It’s a legal document that allows you to appoint one or more people (your ‘attorneys’) to make decisions for you if you lose mental capacity or if you want someone to make decisions for you while you still have capacity. There are two types of LPAs:

Health and Welfare LPA: This covers decisions about your medical care, daily routine, and where you live.
Property and Financial Affairs LPA: This covers decisions about your finances, such as managing your bank accounts, paying bills, and selling your property.

Key Differences between EPA and LPA:

The main difference between an Enduring Power of Attorney and a Lasting Power of Attorney is that EPAs are no longer valid for new applications. If you already have a valid EPA, it can still be used. However, if you’re looking to set up a power of attorney for the first time, you must use an LPA. LPAs offer more flexibility and safeguards compared to EPAs:

Registration: LPAs must be registered with the Office of the Public Guardian before they can be used. This provides greater protection against fraud and abuse. EPAs did not require registration until after the donor lost capacity.
Supervision: LPAs allow for greater oversight of attorneys, including the ability to appoint replacement attorneys and specify how decisions should be made.
Scope: LPAs offer more flexibility in defining the scope of the attorney’s powers, allowing donors to tailor the document to their specific needs. EPAs primarily focused on financial matters.
Safeguards: LPAs have built-in safeguards to protect the donor’s interests, such as the requirement for a certificate provider to confirm the donor understands the document and is not being coerced.

What should you do if you have an EPA?

If you have an existing EPA, you should consider replacing it with an LPA. This will ensure your wishes are followed in the future and provide greater protection for your assets and well-being.

Conclusion: Choosing between Enduring and Lasting Power of Attorney

While the term “enduring power of attorney vs lasting power of attorney” is common, the choice is clear. The LPA has superseded the EPA as the legal document to appoint someone to make decisions on your behalf. If you have an EPA, consider replacing it with an LPA for enhanced protection and control.

FAQ

Can I still use my existing EPA?
Yes, if it was validly executed and registered (if necessary).
How do I create an LPA?
You can obtain the forms and guidance from the Office of the Public Guardian.
How much does it cost to register an LPA?
There is a registration fee.
Who can be my attorney?
Anyone over 18 with mental capacity.
What happens if I don’t have an LPA?
If you lose capacity without an LPA, the Court of Protection may need to appoint a deputy.
What if I have further questions?

Can I change my LPA once it’s registered?

Yes, you can make changes to your LPA as long as you still have mental capacity.