Getting a Good Grasp of the Two Types of Lasting Power of Attorney
A Lasting Power of Attorney, commonly shortened to LPA, gives someone else the legal authority to look after your affairs should you become unable to do so. This article looks at two different types of LPA – useful for candidates studying towards the CII AF1, AF5, J02, R01, R05, or R06 exams.
This article is correct as at 27 March 2023.
Following the Mental Capacity Act 2005, which came into effect on the 1st October 2007, the Lasting Power of Attorney was introduced.
An LPA needs to be registered with the Court even if the person still has mental capacity. There must also be a certificate from prescribed people who can confirm that the person understands the LPA, and there has been no undue pressure put on them. In other words, it acts as a safety net for those people who can be vulnerable.
There are two different types of LPA:
Financial Decisions LPA
The first one is like the old Enduring Power of Attorney, a property and financial affairs LPA, this LPA can be used while someone still has mental capacity.
Here, the attorney looks after the person’s finances and can make decisions regarding buying and selling a property or arranging repairs to a property, paying off a mortgage, paying bills or investing money.
This article looks at two different types of LPA - useful for candidates studying towards the CII AF1, AF5, J02, R01, R05, or R06 exams. Share on X
Health and Welfare LPA
The second one is a health and welfare LPA, which allows the attorney to make decisions on behalf of that person regarding their welfare, such as where they might live to allowing or refusing medical treatment.
A personal welfare LPA can only be used once it’s been registered, and the person has become mentally incapable of making those decisions themselves.
Why both types of LPA are becoming increasingly important
According to a report in 2019 commissioned by the Alzheimer’s Society, there are over 900,000 people with dementia in the UK, with this figure expected to increase by around 210,000 a year. They also report that it doesn’t just affect older people; over 42,000 people under 65 in the UK are also living with this disease. With the most simple of tasks becoming virtually impossible to do, it seems that planning ahead to get a Power of Attorney in place is not a bad idea for all of us.
It’s a good idea to have a good grasp of both types of LPA, as they are often tested in the relevant CII exams.
Grab the resources you need!
If you’re studying for your CII R01 exam, and you’re a bit worried about exam day, grab our free taster to try out one of Brand Financial Training’s resources for yourself. Click the link to download the R01 mock paper taster now!
Alternatively, you can download the taster for AF1, AF5, J02, R05 or R06 if you’re studying for one of those exams.
