Power of Attorney vs. Lasting Power of Attorney: What’s the Difference?

When planning for the future, especially in matters involving finances, health, and property, it’s crucial to understand the Power of Attorney vs Lasting Power of Attorney UK debate. Many people use these terms interchangeably, yet they refer to very different legal arrangements.

A Power of Attorney (POA) gives someone you trust authority to act on your behalf, while a Lasting Power of Attorney (LPA) provides more extensive and enduring protection, even if you lose mental capacity. Understanding the difference between POA and LPA is essential to ensure your wishes are carried out correctly and that your affairs remain in trusted hands.

In this guide, the MAR Legal team explains the types of Power of Attorney, how they work in both the UK and Dubai/UAE, and how to decide which option best suits your situation.

What is Power of Attorney?

An employment settlement agreement UK is a legally binding contract between an employer and an employee. The purpose is to end the employment relationship on A Power of Attorney (POA) is a legal document that authorises another person — known as your attorney or agent — to make decisions or act on your behalf. It can be temporary or specific to certain matters, such as managing finances during a period of travel or illness.

There are several types of Power of Attorney, each serving a unique purpose:

1. Ordinary Power of Attorney – This allows your chosen attorney to handle your financial affairs while you still have mental capacity. It’s commonly used for short-term arrangements, such as when you’re abroad or unable to manage daily banking tasks.
2. General Power of Attorney – Broader in scope, this grants your attorney authority over all your financial matters but ceases to be valid if you lose mental capacity.
3. Specific or Limited Power of Attorney – Used for particular actions, such as selling a property or signing contracts on your behalf.

A Power of Attorney is ideal when you need someone to help manage your affairs temporarily. However, it expires if you lose mental capacity, which is why many individuals choose a Lasting Power of Attorney (LPA) for long-term protection.

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What is Lasting Power of Attorney (LPA)?

A Lasting Power of Attorney (LPA) is a more comprehensive document designed to safeguard your interests over the long term. Introduced in England and Wales under the Mental Capacity Act 2005, an LPA remains valid even if you lose the mental capacity to make decisions yourself.

There are two main types of LPA:

1. Property and Financial Affairs LPA – This allows your attorney to manage your bank accounts, pay bills, collect income or pensions, and even sell your property if needed.
2. Health and Welfare LPA – This gives authority to make decisions about your personal welfare, including medical treatment, living arrangements, and day-to-day care.

Unlike a standard Power of Attorney, an LPA must be registered with the Office of the Public Guardian (OPG) before it can be used. This ensures it meets legal requirements and protects you against misuse.

An LPA provides peace of mind, knowing that your chosen attorney can continue to act in your best interests, even if you can no longer do so yourself.

What is the Difference Between a Power of Attorney and a Lasting Power of Attorney?

The difference between POA and LPA lies mainly in duration, scope, and protection. While both documents grant authority to another person, they apply under different circumstances and offer different levels of security.

Feature	Power of Attorney (POA)	Lasting Power of Attorney (LPA)
Purpose	Short-term or specific use	Long-term protection
Valid when you lose capacity?	❌ No	✅ Yes
Registration required?	❌ No	✅ Yes – with OPG
Common Uses	Managing finances during travel, temporary illness	Managing finances or healthcare decisions permanently
Legal Framework	Common law	Mental Capacity Act 2005

Essentially, a POA is suitable for temporary or transactional situations, while an LPA provides ongoing authority that endures through loss of capacity.

Therefore, if you want to plan ahead for future incapacity — such as dementia, serious illness, or accident — a Lasting Power of Attorney is usually the better option.

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Which is Better — POA or LPA?

Whether a Power of Attorney or Lasting Power of Attorney is better depends on your personal needs and long-term goals.

• Choose a Power of Attorney if you need short-term assistance — for example, while travelling abroad or recovering from a medical procedure.
• Choose a Lasting Power of Attorney if you want your chosen attorney to continue acting for you even if you lose mental capacity.

From a legal protection standpoint, the LPA is more secure and comprehensive. It ensures your affairs can be managed seamlessly without the need for a court-appointed deputy, which can be costly and time-consuming.

At MAR Legal, our legal team often advises clients to create both — a POA for immediate use and an LPA for long-term peace of mind.

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Can a Power of Attorney Override a Lasting Power of Attorney?

No, a Power of Attorney cannot override a Lasting Power of Attorney. Once an LPA is registered and active, it takes precedence over any earlier powers.

If you have both documents, the LPA will apply in situations involving mental incapacity, while a POA may still be used for specific short-term matters as long as you retain capacity.

However, if there’s any conflict or overlapping authority, the LPA usually prevails because it represents a legally recognised, registered, and enduring document under UK law.

It’s also worth noting that you can cancel or replace a Power of Attorney at any time, as long as you have the mental capacity to do so.

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How MAR Legal Services Can Help

Creating or registering a Power of Attorney or Lasting Power of Attorney can be complex — especially when international elements like Dubai or UAE assets are involved.

At MAR Legal, our experienced law team provides:

• Clear advice on the difference between POA and LPA, ensuring you choose the right structure for your needs.
• Drafting and registration of both UK Powers of Attorney and Lasting Powers of Attorney with the Office of the Public Guardian.
• Cross-border support for expats needing a Power of Attorney Dubai or Power of Attorney UAE for property, business, or family purposes.
• Legalisation and translation assistance, ensuring documents are valid across UK and UAE authorities.
• Future planning guidance to protect your finances, healthcare, and loved ones.

Whether you’re based in the UK, Dubai, or abroad, MAR Legal’s law team ensures your affairs are legally protected and your decisions remain in trusted hands.

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Conclusion

Understanding Power of Attorney vs Lasting Power of Attorney UK is vital for effective life planning. While both documents delegate authority, only an LPA continues to protect you if you lose mental capacity.

For UK residents and expatriates managing affairs in Dubai or the UAE, having the right Power of Attorney structure in place — and ensuring it’s recognised in both jurisdictions — can make all the difference.

With expert guidance from MAR Legal’s legal team, you can ensure your wishes are respected, your assets are protected, and your future is secure.

FAQs about Power of Attorney and Lasting Power of Attorney