If you currently have an Enduring Power of Attorney (EPA), you might be wondering whether it’s time to transition to a Lasting Power of Attorney (LPA). Here’s a refreshed look at the key differences and benefits of LPAs compared to EPAs, and why making the switch could be advantageous.
What is an Enduring Power of Attorney?
An EPA is a legal document that allows you to appoint someone you trust to manage your financial affairs. It was designed to assist with financial management both now and if you become unable to make decisions in the future. Since 1 October 2007, EPAs have been replaced by LPAs, and it is no longer possible to create new EPAs.
Should You Switch to an LPA?
If your EPA is already in place and still meets your needs, there may be no immediate need to change. However, updating to an LPA could offer several benefits:
Broader Scope of Authority
EPAs only cover financial decisions, which means they don’t address personal welfare or healthcare choices. LPAs come in two types: one for financial matters and another for health and welfare decisions. This allows you to ensure someone is authorised to make important decisions about your medical care and living conditions if you become unable to do so yourself.
Increased Protection and Validity
The LPA process includes additional safeguards. A certificate provider must sign your LPA, confirming that you understand the document and are not being pressured into making it. This step helps to prevent potential issues related to capacity or undue influence, making the LPA more robust against future challenges.
Option to Appoint Backup Attorneys
With an EPA, if your appointed attorneys can no longer act, you would need to apply to the Court of Protection to appoint a deputy. LPAs, however, allow you to name replacement attorneys who can step in if necessary, ensuring continuity and reducing potential disruptions.
Greater Flexibility in Expressing Your Wishes
LPAs offer more flexibility than EPAs. They allow you to specify not only instructions but also preferences. While preferences are not legally binding, they guide your attorneys on how you would like decisions to be made, providing clearer direction.
Stronger Oversight
LPAs must be registered with the Office of the Public Guardian (OPG) before they can be used. This registration process ensures better oversight and helps prevent misuse. In contrast, EPAs only required registration once you began to lose capacity, which left them more vulnerable to potential abuse.
Time to Review and Update
Having an EPA doesn’t automatically mean you need to switch to an LPA, but it’s worth considering whether an LPA might better meet your needs. You might choose to keep your EPA while adding an LPA for health and welfare or update your existing EPA to an LPA for financial affairs to benefit from the enhanced safeguards.
For tailored advice and support in creating an LPA, reach out to us at 01664 490449.