Lasting Powers of Attorney vs Wills – Which is more important?

Many of us have heard Martin Lewis tell us that your Lasting Power of Attorney is more important than your Will, but is it?

A Lasting Power of Attorney (LPA) and a Will serve different purposes. One is for you during your lifetime, and one is for your loved ones when you are gone. Both are important legal documents in their own right. Whether one is “more important” than the other depends on the situation and your personal circumstances.

Let’s look at the differences:

1. Lasting Power of Attorney (LPA)

Purpose: The LPA allows the person or people you choose (your appointed attorney) to make decisions on your behalf while you’re still alive but unable to manage things due to illness, injury, or incapacity.
Scope: There are two types: one for financial and property decisions, and the other for health and welfare decisions.
When it takes effect: An LPA is registered immediately and the property can be used after activation (if this is chosen) but the health can only be used once you can no longer make decisions.
Importance: It’s essential for ensuring that someone you trust can manage your affairs and make medical decisions if you can’t. Without an LPA in place, your family may have to go to court and obtain a deputyship order to manage your affairs.

2. Will

Purpose: A Will sets out what happens to your property and assets after your death.
Scope: A Will appoints a person or people you choose (executor) to carry out your wishes after you die. It covers things like distributing your estate, guardianship of children, and burial or funeral wishes.
When it takes effect: A Will is only effective after your death.
Importance: A Will ensures that your wishes are respected after you die and can help prevent family disputes over assets or guardianship of children. It can help protect your property, plan for IHT and more.

So, which is more important?

If you’re thinking about incapacity (before death): An LPA is crucial because it ensures your affairs are managed properly while you’re still alive. This means you can be looked after and can make a difficult situation easier for your loved ones. Without it, loved ones might need to go through a lengthy and expensive legal process to manage your affairs.
If you’re thinking about what happens after you die: A Will is essential to decide how your estate and assets are distributed, and it appoints guardians for your children if needed. Without one your estate would pass by the laws on intestacy – this means the people you want to inherit may miss out.

In summary:

Both documents are important, for very different reasons and they do not overlap. An LPA can be more immediate and relevant while you’re still alive, especially in case of sudden incapacity. A Will is about your wishes after your death. Ideally, you should have both to ensure your affairs are taken care of throughout your life and after your passing.

Would you like to know more about setting up either an LPA or a Will? Call us on 01777 712 733 to arrange your free no obligation appointment.