If you set up an Enduring Power of Attorney (EPA) before 2007, you may be wondering whether it’s time to update it to a Lasting Power of Attorney (LPA).
While EPAs are still legally valid, they have clear limitations compared to LPAs, which now represent the legal standard. Deciding whether to switch depends on your personal circumstances and whether your current EPA still provides the level of protection you need.
Our experts have outlined some of the key considerations for switching your EPA to an LPA to help you decide if it’s right for you.
The Difference Between an Enduring Power of Attorney (EPA) and an LPA
An Enduring Power of Attorney (EPA) allows you to appoint someone you trust to look after your finances. However, it does not cover health or welfare decisions. EPAs can no longer be created or amended, though existing ones remain valid. They must also be registered with the Office of the Public Guardian (OPG) if you lose mental capacity, which can cause delays at a crucial time.
A Lasting Power of Attorney (LPA), introduced in 2007, offers broader authority and protection. It comes in two forms:
- Property and Financial Affairs LPA – also known as a ‘financial LPA’ or ‘financial affairs lasting power’, this covers a wide range of financial matters, including managing money, property, bills, taxes, and benefits.
- Health and Welfare LPA – sometimes called a ‘welfare lasting power’, this covers decisions about your ‘personal welfare’, including ‘health and care decisions’, ‘care decisions’, medical treatment, care needs, daily routines, and where you live.
You can create one or both types of LPA (‘one or both types’), depending on your needs. LPAs must be registered before they can be used, meaning everything is in place for your attorneys to act promptly if needed. You and your attorneys must sign documents to make the LPA legally valid.
When appointing attorneys, you can specify how your attorneys are to act, including ‘acting’ jointly, jointly and severally, or in a ‘longer act’ arrangement. You can allocate ‘particular decisions’ or ‘other decisions’ to specific attorneys. It is also important to name a ‘replacement attorney’ and to ‘appoint replacement attorneys’ to ensure continuity if your original attorneys cannot act.
Why Consider Switching from an EPA to a Property and Financial Affairs LPA?
Switching to an LPA can ensure that your attorneys can make decisions about both your finances and your health, giving you more complete protection. Whilst both EPA and LPAs can be used before you have lost mental capacity, you’ll need to provide full permission for your attorney to act on your behalf whilst you still have capacity. LPAs also reflect today’s legal standards, with clearer safeguards for your interests. By updating, you can also choose new attorneys if your original ones are no longer suitable.
For many people, an EPA created years ago no longer reflects their current circumstances. Life events such as marriage, divorce, moving house, retirement, or changes in family relationships can all mean your existing documents are out of date. Reviewing and updating to an LPA gives you peace of mind that your wishes will still be respected. Updating to an LPA ensures your attorneys act in your best interests if you are unable to make your own decisions. Reviewing your arrangements also allows you to consider different deals or options for how your attorneys will act.
If you wish to cancel your EPA, you must complete a deed of revocation to formally revoke the old document.
The Importance of Regularly Reviewing Wills and Lasting Powers of Attorney
Even after setting up an LPA, it is vital to review your arrangements regularly. Circumstances change, and what was right five or ten years ago may no longer reflect your situation today. Regular reviews with a qualified specialist help ensure that your will and LPA are always up to date, providing the right protection for you and your loved ones. Regularly reviewing your arrangements also ensures that your provisions for financial matters and financial decisions remain appropriate and reflect your current wishes.
A simple review can highlight gaps, outdated instructions, or attorneys who may no longer be appropriate for your needs. Keeping your LPA up to date means your attorneys will be able to manage your bank account and other assets effectively if you become unable to do so.
Registration and Notification: What You Need to Know
When planning for the future, ensuring your property and financial affairs and health and welfare decisions are in trusted hands is essential. If you’re considering a Lasting Power of Attorney (LPA), understanding the registration and notification process is key to making sure your wishes are respected and your legal document is ready when needed.
Registering a Lasting Power of Attorney
To make your LPA legally binding, it must be registered with the Office of the Public Guardian. This process can take several months, so it’s wise to register your LPA as soon as it’s signed, rather than waiting until you lose mental capacity. Early registration means your attorneys can act without delay if you become unable to manage your own affairs. There is a registration fee, but this is a small price for the peace of mind that comes with knowing your financial affairs and welfare decisions are protected.
When setting up your LPA, you can appoint more than one attorney to act jointly or jointly and severally, giving you flexibility in how decisions are made. You can also name replacement attorneys who can step in if your original attorneys are unable or unwilling to act. This ensures continuity and further safeguards your interests.
Notification Requirements
As part of the LPA registration process, you’ll need to notify the people you’ve chosen as your attorneys and any replacement attorneys. It’s also a good idea to inform close family members and, where appropriate, social services. This transparency helps prevent disputes and ensures everyone involved understands your wishes and the legal authority your attorneys have to make decisions on your behalf.
Key Considerations
- If you lose mental capacity, your LPA allows your chosen attorneys to manage your property, finances, and welfare without the need for court intervention.
- You can tailor your LPA to cover financial affairs, health and welfare, or both, depending on your needs.
- Regularly review your LPA to ensure it still reflects your wishes and that your chosen attorneys and replacement attorneys remain suitable.
- If you have an existing EPA, consider whether switching to an LPA would offer you more protection and flexibility, especially for health and welfare decisions.
- If you do not have an LPA or EPA, your loved ones may need to apply for a deputyship order from the Court of Protection, which can be a lengthy and costly process.
Seeking Professional Advice
While it’s possible to create and register an LPA yourself, seeking professional advice can help you navigate the process, avoid common pitfalls, and ensure your legal document is completed correctly. An expert can also advise on related matters, such as deputyship orders or how to revoke an enduring power of attorney if you decide to update your arrangements.
By understanding the registration and notification process, and by keeping your documents up to date, you can be confident that your property and financial affairs and health and welfare will be managed according to your wishes, even if you lose capacity in the future.
Speak to a Specialist Adviser for Property and Financial Affairs
Deciding whether to keep your EPA or switch to an LPA can feel complicated, but professional advice makes the process far clearer. At Bower Home Finance, our expert advisers can review your existing EPA, explain whether updating to an LPA would benefit you, and ensure your will and powers of attorney are fully aligned with your current circumstances. An LPA gives your attorneys attorney power to manage your affairs, and you can appoint a civil partner as an attorney, ensuring your partner has the legal authority to act on your behalf.
Protecting your future is too important to leave to chance, speak to our team today to arrange a no-obligation consultation.
