Property and financial affairs vs health and welfare LPA
There are two main types of lasting power of attorney. A property and financial affairs LPA can cover money, bills, benefits, pensions, bank accounts and property. A health and welfare LPA can cover care, daily routine, medical care and life-sustaining treatment decisions.
GOV.UK explains that a health and welfare LPA can only be used when the donor is unable to make their own decisions. A property and financial affairs LPA can be used as soon as it is registered, with the donor’s permission.
Property and financial affairs
- Banking, bills and pensions.
- Benefits and tax.
- Selling or managing property.
- Can be used once registered, if the donor permits it.
Health and welfare
- Care and daily routine.
- Medical treatment decisions.
- Life-sustaining treatment choices, if included.
- Can only be used when the donor lacks capacity for that decision.
Use professional advice where there is family conflict, capacity concern, business property, overseas property or tax planning.
Source: GOV.UK LPA overview.