Power of Attorney (POA) and Lasting Power of Attorney (LPA) are legal documents that enable individuals to appoint someone else to act on their behalf. Both documents have similar functions and can be used for the same purposes, but there are important differences between them that should be considered when deciding which type to use.
What is a Power of Attorney? A Power of Attorney (POA) is a legal document that enables an individual (the ‘principal’) to appoint someone else (the ‘attorney’) to act on their behalf. The attorney can then make decisions and take actions on behalf of the principal in matters such as finances, property, or healthcare. The POA is only valid for a specific period of time and must be revoked when the principal no longer wishes for the attorney to act on their behalf.
What is a Lasting Power of Attorney? A Lasting Power of Attorney (LPA) is a legal document that enables an individual (the ‘donor’) to appoint someone else (the ‘attorney’) to act on their behalf. Unlike a POA, an LPA is valid indefinitely and remains in effect even if the donor loses mental capacity. The attorney can then make decisions and take actions on behalf of the donor in matters such as finances, property, or healthcare.
Differences between POA and LPA One of the main differences between POA and LPA is that a POA is only valid for a specific period of time, while an LPA remains in effect indefinitely. Additionally, an LPA can only be revoked if the donor is mentally capable, while a POA can be revoked at any time. Furthermore, an LPA requires registration with the Office of the Public Guardian before it is valid, while a POA does not.
In conclusion, both POA and LPA can be used for similar purposes, but there are important differences between them that should be considered when deciding which type to use. It is important to understand the differences between the documents and the implications of signing them before making a decision.
Difference Between LPA and POA
Definition of an LPA
A Lasting Power of Attorney (LPA) is a legal document that allows an individual, known as the ‘donor’, to appoint one or more people, known as ‘attorneys’, to make decisions on their behalf in the event that they become unable to make decisions for themselves. This legal document is a powerful tool and grants attorneys the ability to make decisions over a wide range of matters. These matters may include decisions on health and welfare, financial matters, or both.
It is important to note that the donor does not lose control of their decisions when making an LPA. They are still in control and have the final say on any decisions made. The attorneys are there to make sure that the donor’s wishes are respected and that any decisions made are in the donor’s best interest.
Definition of a POA
A Power of Attorney (POA) is a legal document that grants one person, known as the ‘principal’, the authority to appoint another person, known as the ‘agent’, to act on their behalf in various matters. It is important to note that the principal does not lose control of their decisions when making a POA as the agent is simply empowered to act on their behalf.
The specific authority granted to the agent varies from POA to POA. For example, the agent may have the authority to make decisions on behalf of the principal in matters related to their health, finance, and property. Additionally, the agent may have the authority to make decisions on behalf of the principal in matters related to their business interests.
It is important to note that a POA is typically a temporary document and will expire when the principal dies or is declared mentally incapacitated.
Key Differences between LPA and POA
The key difference between an LPA and a POA is that an LPA is designed to provide long-term protection for the donor, and the attorneys appointed under the LPA will continue to act on the donor’s behalf even if the donor is declared mentally incapacitated or dies. On the other hand, a POA is typically a temporary document and will expire when the principal dies or is declared mentally incapacitated.
In terms of the authority granted to attorneys and agents, there is some overlap between LPAs and POAs. Both documents grant attorneys and agents the authority to make decisions on behalf of the donor or principal in matters related to their health, finance, and property. However, an LPA may also grant attorneys the authority to make decisions about the donor’s welfare.
In terms of the process of creating an LPA or POA, there are some important differences. An LPA must be registered with the Office of the Public Guardian in order to be valid. This registration process is not required for a POA, however, the POA must be signed and witnessed by two people.
Overall, an LPA and a POA are both powerful legal documents that empower others to act on behalf of the donor or principal in various matters. The key difference between the two documents is that an LPA is designed to provide long-term protection for the donor, while a POA is a temporary document and will expire when the principal dies or is declared mentally incapacitated.