When planning for the future, many people focus on making a Will, ensuring their assets are distributed according to their wishes after they pass away. While a Will is essential, a Lasting Power of Attorney (LPA) is equally important, as it protects your interests while you’re still alive.
There has been growing discussion about whether an LPA is more beneficial than a Will, but in reality, the two documents serve different yet equally critical purposes. A Will ensures your estate is handled as you intend after your death, while an LPA safeguards your finances and wellbeing if you lose the capacity to make decisions during your lifetime. Neither should be overlooked—together, they provide full protection for both you and your loved ones.
What is a Lasting Power of Attorney (LPA)?
An LPA is a legal document that allows you (the “donor”) to appoint one or more trusted individuals (your “attorneys”) to make decisions on your behalf should you become unable to do so yourself. There are two types of LPAs:
- Property and Financial Affairs LPA – Covers managing your money, paying bills, handling property transactions, and other financial matters.
- Health and Welfare LPA – Covers medical decisions, care arrangements, and even life-sustaining treatment, but can only be used if you lose capacity.
Without an LPA, your loved ones may not be able to make key decisions for you without going through a long, costly legal process via the Court of Protection.
What is a Will and Why is it Just as Important?
A Will is a legal document that sets out what happens to your money, property, and possessions after you die. It also allows you to:
- Appoint guardians for your children.
- Specify how your estate should be divided.
- Ensure certain individuals or charities receive inheritances.
- Reduce the risk of disputes among family members.
Without a valid Will, your estate will be distributed according to intestacy laws, which may not reflect your wishes and could cause unnecessary stress for your loved ones.
Why You Need Both an LPA and a Will
Many people assume that once they have a Will in place, their future planning is complete. However, a Will only takes effect after your death, meaning it cannot help if you lose capacity due to illness, accident, or age-related conditions. This is where an LPA becomes crucial.
Likewise, having an LPA alone does not determine what happens to your estate when you pass away—without a Will, your assets may not be passed on as you intend.
Together, a Will and an LPA ensure you are fully protected in life and in death.
Key Reasons to Have Both:
- Control Over Your Affairs at All Times
- An LPA ensures that someone you trust can manage your finances and welfare if you are unable to do so.
- A Will ensures that your assets are distributed as per your wishes after you pass away.
- Avoiding Costly Legal Processes
- Without an LPA, loved ones may have to apply to the Court of Protection, a lengthy and expensive process.
- Without a Will, your estate is subject to intestacy rules, which could result in higher taxes or disputes over inheritance.
- Reducing Stress for Your Family
- If you lose capacity, an LPA allows your chosen attorneys to make decisions without delay.
- A Will prevents legal complications and disputes over your estate after your death.
How to Put an LPA and a Will in Place
- Choose your attorneys (for an LPA) and executors (for a Will).
- Complete the necessary legal documents – LPAs must be registered with the Office of the Public Guardian before they can be used.
- Review your documents regularly – Life events such as marriage, divorce, or having children may require updates.
Planning for the future isn’t just about what happens after you’re gone—it’s also about ensuring you are looked after during your lifetime. A Will and an LPA work hand in hand to provide complete peace of mind, ensuring both your financial affairs and personal welfare are handled according to your wishes, no matter what happens.
At A R Brown & Co, we can guide you through the process of setting up both a Will and an LPA, ensuring that your future planning is legally sound and aligned with your wishes. Get in touch with us today to discuss how we can help protect you and your loved ones.
Disclaimer: This blog is for informational purposes only and should not be considered legal advice. For tailored advice, please consult a legal professional.