There are different types of power of attorney and you can set up more than one. They cover two main areas, health and wealth and property and finance. You can choose whether you wish to have one of both areas.
An LPA covers decisions about your financial affairs, or your health and care. It comes into effect if you lose mental capacity, or if you no longer want to make decisions for yourself. You would set up an LPA if you want to make sure you’re covered in the future.
is this. Man (A) lives with his partner (B). They have their own and maybe joint bank accounts paying the rent/mortgage and all the bills, maybe school costs, car costs, etc
Suddenly, the one person suffers dementia, a car accident or a mental health issue and it renders that person incapacitated and they cannot look after themselves or manage their finances.
The bank account is straight away frozen, the partner (B) cannot access the joint account even though their name is on the account. This account won’t pay ALL the bills, the rent or mortgage and maybe the school fees. What is the partner (B) to do? Well without a LPA, run the risk of ruin or apply for a deputyship. This is an expensive and long winded process with the courts which anyone would want to avoid.