Life is full of twists and turns, and though we can’t predict tomorrow, we can plan to protect ourselves and our loved ones. Setting up a Power of Attorney (POA) guarantees that someone you trust can manage your affairs and make important decisions if you’re unable to.
At Triangle Legal Services, we know that choosing the right type of POA can feel overwhelming. We’ll help you understand the differences between Ordinary Power of Attorney and Lasting Power of Attorney so you can pick the option that best fits your situation.
What is Ordinary Power of Attorney (OPA)?
An Ordinary Power of Attorney, or OPA, is a legal document that lets you appoint someone to manage your finances whilst you have mental capacity. This can be incredibly useful if you need someone to step in temporarily, like if you’re going overseas for a while or just need an extra hand managing bills or bank accounts.
What is Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney, or LPA, is designed for long-term planning. Should you become unable to make decisions for yourself, the person you’ve chosen (called your “attorney”) can step in and make those decisions on your behalf.
There are two types of LPA, each covering different areas of life:
- Property and Financial Affairs LPA – Allows your attorney to handle things like your finances, property, and bills.
- Health and Welfare LPA – Lets your attorney make decisions about your personal health, including medical treatment and living arrangements.
You can set up one type of LPA or both, depending on your needs.
Enduring Power of Attorney (EPA)
Before 2007, Enduring Power of Attorney (EPA) was the legal document used to let someone manage your finances if you lost your decision-making ability. While new EPAs are no longer issued, any EPA set up before October 2007 is still valid.
It’s important to note that an EPA doesn’t include decisions around health and welfare. If you want someone to make decisions about your health care or living arrangements in the future, you may want to consider setting up a Health and Welfare LPA alongside your existing EPA.
Quick Overview of OPA vs LPA
| Feature | Ordinary Power of Attorney (OPA) | Lasting Power of Attorney (LPA) |
| Purpose | Temporary financial authority | Long-term authority for finances and/or health |
| Mental capacity | Only valid while you have mental capacity | Remains valid if mental capacity is lost |
| Types | Only covers finances | Two types: finances and health and welfare |
| Set up complexity | Simple, no registration needed | Formal registration with the Office of the Public Guardian. |
| Best for | Short-term needs, e.g. travel | Long-term planning and peace of mind |
The Differences Between Ordinary Power of Attorney and Lasting Power of Attorney
Duration
One of the main differences between an Ordinary Power of Attorney and a Lasting Power of Attorney is how long each remains effective. An OPA is only valid while you have mental capacity, meaning it automatically ends if you lose the ability to make decisions. Under the Mental Capacity Act 2005, people are assumed to have capacity unless proven otherwise. While anyone can assess capacity, for significant decisions like buying or selling a property, it’s best to have a qualified professional conduct the assessment and provide a report of their findings.
LPAs are designed for long-term protection and work even if you lose the cognitive ability. This makes them ideal if you want peace of mind that someone can continue to make decisions for you if your situation changes.
Legal Requirements
Setting up an OPA is straightforward. It only requires you and your chosen attorney to draft and sign the document, with no need for official registration. This means an OPA comes into effect as soon as it’s signed, making it a convenient choice if you need something set up quickly. You can complete the necessary paperwork either with help from a solicitor or independently.
An LPA must be registered with the Office of the Public Guardian before it can be used, so it involves a more secure and formal process. This registration can take some time, so an LPA isn’t effective immediately. While this process does add time and paperwork, it provides a level of security and oversight that can be reassuring for long-term planning to make sure your wishes will be respected.
What They Cover
Another significant difference between OPA and LPA is the type of decisions each covers.
An OPA only applies to financial matters, allowing your appointed person to manage bank accounts, pay bills, or handle property transactions on your behalf.
An LPA, however, comes in two types: one for financial matters and one for health and welfare issues. The Property and Finance LPA covers areas similar to an OPA but with the added advantage of lasting through any changes in cognitive ability. The Health and Welfare LPA covers personal decisions around medical treatment, living arrangements, and daily care.
Cost and Complexity
An OPA is usually less expensive and quicker to arrange, as it doesn’t require the registration process or added legal steps. This can make it a good choice for short-term needs or more straightforward situations.
Setting up a Lasting Power of Attorney (LPA) can be more costly than an Ordinary Power of Attorney (OPA), partly because there’s a registration fee, and some people consult a solicitor for guidance. If you’re wondering if you need a solicitor for a Lasting Power of Attorney, it isn’t required, but it is helpful to make sure everything is completed accurately. While instructing a solicitor adds to the expense, many find it worthwhile for the added security, especially when planning for long-term peace of mind.
Choosing Between OPA and LPA
Deciding between an OPA and an LPA depends on your needs and how you want your affairs managed. If you’re unsure which option is best, asking yourself a few key questions will help clarify what will work for you.
Questions to Ask Yourself
- Do I need help with finances just for a short time? Or am I looking for long-term support in case of illness or loss of mental competence?
- Do I want someone to make personal decisions for me, like healthcare or where I live, if I can’t make those choices myself?
- Do I want a quick and simple option like an OPA? Or would I prefer the more formal process of setting up an LPA for extra peace of mind?
- Am I comfortable with an OPA that stops if I lose the ability to make decisions? Or do I need a plan that stays in place no matter what happens?
Scenarios
Here are a few common situations to show when each type of Power of Attorney might be helpful:
- You’re going abroad for several months and need someone to manage your finances at home: An OPA could be a convenient option here, as it’s easy to set up and covers short-term needs without requiring long-term commitment.
- You want to make sure that trusted people can make decisions about your healthcare if you’re ever unable to: Setting up an LPA for Health and Welfare would allow your appointed attorney to decide about your medical care, living arrangements, and personal welfare if you aren’t able to make the decisions yourself.
- You have concerns about the future, such as managing finances in case of a progressive illness: An LPA for Property and Financial Affairs could provide lasting peace of mind, as it continues to be valid even if you lose the ability to make decisions for yourself.
- You want to cover all bases for the long term: Arranging both types of LPA would allow a trusted person to handle both your financial matters and any health and welfare decisions, giving you a complete plan for the future.
Need Help Setting Up a Lasting Power of Attorney or Ordinary Power of Attorney?
Setting up the right Power of Attorney will have a big impact on how your health and wealth are managed in the future. Triangle Legal Services is here to support you if you’re unsure which type is right for you or need help with the setup process.
Our team will guide you through each step, from clarifying the differences between Ordinary Power of Attorney and Lasting Power of Attorney to completing the paperwork and setting up your LPA with the Office of the Public Guardian.
Contact us today to discuss your options and make sure you have the right protection in place.
OPA vs LPA FAQs
Can I have both an Ordinary Power of Attorney and a Lasting Power of Attorney?
Yes, it’s possible to have both. An OPA can be useful for short-term financial needs, while an LPA provides long-term coverage, especially if you want security in case of future loss of decision-making ability.
What happens if I create an Ordinary Power of Attorney and then lose mental capacity?
If you lose the capacity to make informed decisions, an OPA will automatically end, and your attorney won’t be able to act on your behalf anymore. For support that lasts through any changes in capacity, an LPA is usually the better choice for long-term planning.
Can I revoke either type of Power of Attorney?
Yes, you can cancel a Lasting Power of Attorney or an Ordinary Power of Attorney as long as you have the cognitive ability to make that decision. To revoke an LPA, though, you’ll need to send a formal notice and inform the Office of the Public Guardian.
Should I update my Enduring Power of Attorney (EPA) to OPA or LPA?
If created before October 2007, EPAs remain valid but cover only financial matters. If you’d like to include health and welfare decisions, you might consider setting up an LPA for Health and Welfare alongside your EPA.