What different types of Power of Attorney are there ?

In UK law, lasting power of attorney (LPA) and enduring power of attorney (EPA) are legal instruments that grant one person (the attorney) authority to make decisions on behalf of another person (the donor) if they lose the capacity to do so themselves. However, there are key differences between the two:

1. Legal Framework

• Lasting Power of Attorney (LPA):

  • Introduced under the Mental Capacity Act 2005.
  • Replaced EPAs in October 2007.
  • Still in use today and is the legal mechanism for appointing attorneys in England and Wales.

• Enduring Power of Attorney (EPA):

  • Governed by the Enduring Powers of Attorney Act 1985.
  • Discontinued after October 2007. However, EPAs created before this date remain valid if they were correctly executed.

2. Types of Decisions Covered

• LPA:

  • Two types:
    1. Property and Financial Affairs LPA: Covers financial matters, like managing bank accounts, paying bills, or selling property.
    2. Health and Welfare LPA: Covers personal welfare, including decisions about medical treatment or care arrangements. It can only be used when the donor lacks mental capacity.

• EPA:

  • Covers only property and financial affairs.
  • Does not include decisions about health and welfare.

3. Activation and Registration

• LPA:

  • Must be registered with the Office of the Public Guardian (OPG) before it can be used, even if the donor still has mental capacity.
  • Can include conditions specifying when it becomes active (e.g., only after the donor loses capacity).

• EPA:

  • Could be used immediately after signing if the donor gave permission.
  • If the donor starts to lose mental capacity, the attorney must register the EPA with the OPG before continuing to act.

4. Health and Welfare Decisions

• LPA:

  • Includes an option for decisions about health and welfare, which EPAs do not cover.

• EPA:

  • Does not include provisions for health and welfare.

5. Validity

• LPA:

  • Currently the only legal document for appointing attorneys going forward.
  • Covers both health and welfare and financial matters.

• EPA:

  • No longer possible to create new EPAs since October 2007.
  • Existing EPAs remain valid for financial matters only, provided they were executed and, if necessary, registered before that date.