What is the difference between a Will and a Lasting Power of Attorney?

Most people know what a Will is but do you know what a Lasting Power of Attorney (LPA) is? And what is the difference between the two?

What is a Will?

A will is a legal document that outlines what should happen to your estates, investments and possessions once you have passed away. It dictates who should inherit your finances and possessions, and gives specific details on how these should be managed in your absence. A Will is drawn by a professional Will Writer.

A Will can cover many important things, such as funeral wishes, gifts or donations to loved ones and charities. A Will gives important instructions in case there are disagreements amongst family members. The main aim of a Will is to create clarity and to reduce potential disputes amongst family members after you have passed away. A Will ensures that your investments, properties or your most valued possessions are in the right hands, and allows you to appoint executors who will carry out your wishes. The appointed executors are normally trusted friends, family members or professionals. They are responsible for ensuring that your assets go to the right people, making sure your wishes are followed and making sure that any outstanding bills or loans are paid on your behalf. On the other hand, the absence of a Will can create confusion, misunderstanding and disputes between those left behind.

Family members are more likely to face delays and legal complications, leaving professionals to make decisions that you might not originally have wanted- a process that can become very stressful for your loved ones. Many people assume that a Will can cover them if they lose mental capacity, but this couldn’t be further from the truth. This is where an LPA comes in.     

What is an LPA?

An LPA is a legal document that can be used by your attorneys (people that you have chosen to look after your affairs). There are two types of LPAs- Property & Financial Affairs and Health & Welfare. These legal documents ensure that your attorneys look after your health and financial affairs, whether in an emergency, an illness or an accident, or if you lose mental capacity. An LPA needs to be registered with the Office of the Public Guardian before it can be used, and can only be used by your named attorneys with your authority. A Property & Financial Affairs LPA can be used while you still have mental capacity. This LPA lets your attorneys manage your day to day matters, such as managing your bank accounts and speaking with health care professionals and social workers on your behalf. A Health & Welfare LPA on the other hand, can only be used if you lose mental capacity. If you lose mental capacity (receive a Dementia diagnosis for example) without an LPA in place, it can get very tricky for your loved ones to manage your affairs. This type of LPA ensures that your attorneys are able to make important healthcare decisions on your behalf. For example, if you receive a Dementia diagnosis, your attorneys will be able to make key decisions relating to all your health matters. This is why it’s important to choose attorneys that you know and trust. Many people assume that an LPA is only for older people, but anyone from the age of eighteen can get an LPA in place. In fact, it is recommended that people should start thinking about an LPA as soon as they reach eighteen, because an illness and emergency can happen at any age.

What is the key difference between a Will and an LPA?

A Will ensures that your loved ones are safe and protected when you are no longer here. But what about an LPA? What does an LPA do if and when the unexpected happens? To put it simply, an LPA ensures that those you trust the most are able to manage your affairs, should you lose your mental or physical capacity. In other words, an LPA ensures that things go smoothly, in order to avoid lengthy legal processes. This saves everyone involved time, energy and money (for more information on this, read our blog “what would happen if you suddenly couldn’t make a decision for yourself?”).  

Can you have a will and an LPA?

Yes. In this day and age, it is vital that you have both in place to protect yourself and your loved ones. Most people assume that a Will is enough. A Will is sufficient to protect your loved ones and what’s important to you once you have passed on. But what about your own well-being and security while you’re still here? Did you know that a Will does not give your loved ones or your next of kin the authority to manage your affairs while you’re alive? This is why an LPA is important, because it gives those that you trust the authority to step in when it matters. For example, having an LPA gives your attorneys the right to make decisions if you received a Dementia diagnosis. Having an LPA in place avoids lengthy legal processes and saves you both time and money. With your authority, your attorneys can make important decisions relating to your health and financial affairs. The absence of an LPA can lead to the Court of Protection making important decisions for you. This is known to be a lengthy and expensive legal process- a process that can be avoided with an LPA in place.  

The benefits of having both a Will and an LPA in place.

A Will protects you when you have passed, while an LPA protects you while you’re alive. Having both in place, protects your present and your future affairs. They both ensure that your wishes are respected if and when something out of your control happens. Having both in place ensures that the right people can take control of your affairs in order to avoid unnecessary legal complications. Having both a Will and an LPA in place ensures that important decisions and scenarios are planned for, and will give you maximum protection in order to avoid unnecessary complications.  

Need help with your LPA? Contact LPA Assist today for a friendly, non- obligatory consultation.