At A.D.E Wills, clients often ask us if they can appoint someone to make decisions on their behalf in their Will. This common query inspired us to clarify the differences between Wills and Lasting Powers of Attorney (LPAs).
What is a Will?
A Will takes effect after you pass away. It directs how to distribute your assets and names guardians for your minor children. Many people mistakenly believe a Will can authorise someone to act for them if they lose mental capacity during their lifetime.
Enter the Lasting Power of Attorney
An LPA operates during your lifetime. It allows you to appoint an attorney to make decisions if you become unable to do so yourself. This could result from illness, accident, or loss of mental capacity.
Two types of LPAs exist:
1. Property and Financial Affairs LPA: Your attorney manages your finances and property decisions. You can use this LPA even with mental capacity, but only with your explicit consent.
2. Health and Welfare LPA: Your attorney makes decisions about your medical care and daily routine.
The Crucial Difference
Timing sets these documents apart. A Will activates after death, while an LPA works during your lifetime if you can’t make decisions. Both serve essential roles in comprehensive estate planning.
Why You Need Both
Consider losing mental capacity due to an accident or illness. Without an LPA, your family might struggle to manage your finances or healthcare. Your Will can’t help in this scenario.
Conversely, an LPA without a Will might lead to undesired asset distribution after your death. This could cause family disputes and hardship for your loved ones.
Consequences of Not Having an LPA
Without an LPA, if you lose mental capacity, your loved ones must apply to become your deputy through the Court of Protection. This process often proves time-consuming, expensive, and stressful.
Taking Action
Understanding these differences helps ensure your affairs remain in order throughout your life and beyond. A.D.E Wills can guide you through creating a comprehensive estate plan.
We invite you to secure your future and gain peace of mind. Call us on 01865 507174 or email info@adewills.co.uk to discuss your needs and create a plan that includes both a Will and appropriate LPAs.
Disclaimer
This article provides general information only. We recommend seeking professional advice for your specific circumstances.
