19 February 2025
When planning for the future, many people assume that writing a Will is enough to ensure their affairs are in order. However, a Lasting Power of Attorney (LPA) serves a different and equally important purpose. Whilst both documents help manage personal affairs, they operate at different times and cover different aspects of decision-making.
Shannon Zermani, a Lawyer in the Wills, Trusts and Probate team, outlines the key differences between a Will and an LPA for effective estate planning.
What is a Will?
A Will is a legally binding document that outlines how a person’s estate (money, property, and possessions) should be distributed after their death. It allows individuals to:
- Appoint executors to manage their estate
- Specify who should inherit their assets
- Name guardians for any minor children
- Make their funeral wishes known
- Provide for charities or other beneficiaries
A Will only takes effect upon the death of the person who has created it and can be changed throughout your lifetime.
What is a Lasting Power of Attorney (LPA)?
An LPA is a legal document that allows someone to appoint one or more individuals (the attorneys) to make decisions on their behalf if they lose mental capacity during their lifetime. There are two types of LPAs:
- Health and Welfare LPA – These covers decisions about medical treatment, care, and daily living. It only takes effect if the donor (the person putting the LPA in place) loses mental capacity. Whilst the donor has capacity, only they will make decisions about their health and welfare.
- Property and Financial Affairs LPA – This allows the attorneys to manage finances, including bank accounts, bills, property sales, and investments. It can be used either before or after the donor loses mental capacity, depending on their wishes.
Unlike a Will, an LPA is valid only during the donor’s lifetime. Once the donor passes away, the LPA ceases to be effective, and the executor of the Will takes over.
Key differences
The main difference between a Will and an LPA is their purpose. A Will is designed to distribute a person’s assets after death, while an LPA is intended to manage a person’s affairs during their lifetime if they lose mental capacity.
A Will takes effect only after death, whereas an LPA can take effect during the donor’s lifetime if required. In a Will, individuals appoint executors to manage their estate, whereas in an LPA, they appoint attorneys to make decisions on their behalf.
Another key difference is that a Will does not require registration with any authority before it becomes valid. In contrast, an LPA must be registered with the Office of the Public Guardian before it can be used.
Do I need a Will and an LPA?
Yes. Many people create a Will but overlook setting up an LPA. However, without an LPA, if you lose mental capacity due to illness or an accident, no one (not even family) has automatic rights to manage your affairs. They would have to apply to the Court of Protection for a deputyship order. This will lead to delays, potential financial difficulties, and costly court applications.
By having both a Will and an LPA, you ensure that your affairs are taken care of, both during your lifetime and after your death by those appointed. You also ensure that you are appointing people whom your trust.
If you’d like to set up a Will or Lasting Power of Attorney, contact Shannon Zermani at 01494 478687 or email shannon.zermani@blasermills.co.uk.