A Lasting Power of Attorney (LPA) is a document you create now (while you have mental capacity) to take effect at some date in the future should you ever lose capacity.  By setting up an LPA you have control over who should act for you if needs be.  You can appoint one or more attorneys and specify how they are to act.

There are two types of Lasting Power of Attorney – one for Property and Financial Affairs and one to cover Health and Welfare decisions.  A brief summary of each is provided below:-

LPA for Property and Financial Affairs

Under this Power, your Attorney has wide powers over your finances.  He or she can sign cheques, withdraw money, pay bills, invest money on your behalf and make reasonable gifts (if you yourself had been making gifts).  Your Attorney would also have the power to sell your property for you if necessary.

This type of Power is not dependent on loss of mental capacity i.e. it can be used with your permission.  It could be useful if you were out of the country for a long period of time or if perhaps, due to advancing years, you’re tired of looking after your own finances.

LPA for Health and Welfare

This type of Power is dependent on loss of mental capacity.  Whilst you have capacity it is assumed that you will make your own decisions regarding your health and welfare.  If you lose capacity, the Attorney can take over and make decisions such as where you live, what you eat and what you wear on a day to day basis.  The Power even extends to giving your Attorney the authority to make life sustaining treatment decisions on your behalf.  If you do not want to give your Attorney this latter power then you can opt out by selecting the relevant option in the Power itself, though very few people do so.