Picture the Wall: Lasting Power of Attorney & Wills
This blog addresses a question I am frequently asked and a statement I commonly hear.
The question is, “what’s the difference between a Lasting Power of Attorney and a will?” and the statement is, “I don’t need a Lasting Power of Attorney for Property and Finance because I have a will.”
Both a Lasting Power of Attorney and a will are important elements of Advance care Planning, but they have different and unique functions.
I’ll begin the blog by briefly describing what each document does, then show how they each contribute to planning ahead.
Lasting Power of Attorney
A Lasting Power of Attorney is a legal document that enables you to appoint one or more people to support you to make decision or to make decisions in your best interests if you lose mental capacity. There are two types of LPA:
Health and Welfare LPA: This allows your attorney(s) to make decisions about your personal healthcare and welfare, such as daily care, medical treatment, and life-sustaining treatment.
Property and Financial Affairs LPA: This allows your attorney(s) to manage your financial matters, including paying bills, managing bank accounts, and selling property.
In essence, a Lasting power of Attorney is used when you are alive to support you to make decisions, or to make decisions in your best interests if you lose capacity.
Will
A will enables you to decide what happens to your possessions, money and property after you die. If you die without a will, the law decides who gets what[i].
The key words here are after you die – a will takes effect after a death.
Advance Care Planning
Advance Care Planning is known by different names in different places – it’s easy to become lost in the quagmire of words around Advance Care Planning, so I created an infographic called Getting Your House in Order.
The infographic shows Advance Care Planning as a house built on the foundation of What Matters Most. The windows represent different components of Advance Care Planning which are:
What Matters Most to You
What you do want
What you don’t want
Who would speak for you
Legacy
End of Life Care
Returning to Lasting Power of Attorney and wills, Lasting Power of Attorney is “who would speak for you” window and wills come in the window of “legacy”.
The difference between a Lasting Power of Attorney and a will
The difference between a Lasting Power of Attorney and a will is life and death – think of an imaginary dividing wall between them. A Lasting Power of Attorney is used when you are alive, and a will is used when you are dead.
Share the message
I hope that answers the question in a useful way if somewhat blunt way – pass the message on!
[1] GOV.UK Making a will https://www.gov.uk/make-will
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