Health and Welfare LPAs and Property and Financial Affairs LPAs: What Is the Difference?

ByNeil Taylor

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From the Wills and Probate Team at Phillips Solicitors

When people think about Lasting Powers of Attorney (LPAs), they are often surprised to learn that there are two different types.

Each serves a different purpose, and understanding the distinction is important when planning for the future. Many people choose to put both in place so that trusted individuals can assist with a wide range of decisions if they are ever unable to make those decisions themselves.

What Is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document that allows you (known as the Donor) to appoint one or more trusted people (known as Attorneys) to help you make decisions or make decisions on your behalf.

There are two types:

  • Property and Financial Affairs LPA
  • Health and Welfare LPA

You can make either one individually or both together, depending on your circumstances and wishes.

Property and Financial Affairs LPAs

A Property and Financial Affairs LPA allows your Attorneys to deal with financial matters on your behalf.

Depending on the authority granted, this may include:

  • Managing bank and savings accounts.
  • Paying household bills and care fees.
  • Collecting pensions and benefits.
  • Managing investments.
  • Buying, selling, or dealing with property.
  • Handling day-to-day financial administration.

Once registered with the Office of the Public Guardian, this type of LPA can be used while you still have mental capacity if you choose to allow it. It can also continue to be used if you later lose the ability to manage your own affairs.

This flexibility can be particularly helpful where someone finds managing financial matters difficult due to illness, mobility issues or time spent in hospital.

Health and Welfare LPAs

A Health and Welfare LPA allows your Attorneys to make decisions about your personal welfare.

This may include decisions relating to:

  • Care arrangements.
  • Medical treatment.
  • Daily routine and personal care.
  • Where you should live.
  • Social activities and support arrangements.

Unlike a Property and Financial Affairs LPA, a Health and Welfare LPA can only be used once you no longer have capacity to make the particular decision yourself.

This type of LPA enables the people you trust to have a voice when important decisions need to be made about your care and wellbeing.

Why Do Many People Make Both?

The two types of LPA serve different purposes and often complement each other.

Having both documents in place can help ensure that trusted Attorneys can assist with:

  • Financial matters.
  • Property issues.
  • Healthcare decisions.
  • Care arrangements.
  • Day-to-day welfare needs.

Without an LPA, relatives may not automatically have authority to act on your behalf, even if they are close family members.

If capacity is lost before LPAs are created, an application to the Court of Protection may be required before someone can manage your affairs.

Things to Consider

Before making an LPA, it is sensible to think carefully about:

  • Who you trust to act as your Attorney.
  • Whether replacement Attorneys should be appointed.
  • Whether Attorneys should act jointly or independently.
  • Whether you wish to include specific instructions.
  • Whether you would like to record preferences to guide your Attorneys.

Choosing the right people is often as important as completing the document itself.

How Phillips Solicitors Can Help

Our Wills & Probate team can explain the differences between the two types of LPA and help you decide what arrangements are most appropriate for your circumstances.

We can:

  • Explain how LPAs work.
  • Help you choose suitable Attorneys.
  • Advise on replacement Attorneys.
  • Draft and prepare the documents.
  • Register LPAs with the Office of the Public Guardian.
  • Provide guidance on Court of Protection issues where capacity has already been lost.

Our aim is to make the process straightforward and ensure that your wishes are clearly recorded and protected.

Contact Us

If you would like advice about Lasting Powers of Attorney or future planning, contact Phillips Solicitors to arrange an appointment with our Wills & Probate team.

Putting LPAs in place today can provide reassurance for you and your family tomorrow.

You can contact us online or call 01623 658556 (option 4).

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This article is general information only and is not legal advice on any individual case. The correct advice will depend on the facts, documents, family circumstances, and capacity position.

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