This is a common question, as attorneyships have been around for many years. Until 2007 you could appoint attorneys under an Enduring Power of Attorney.
Lasting Powers of Attorney (LPAs) were created in the 2005 Mental Capacity Act. Rather than have one document to cover everything (as with Enduring Powers of Attorney). The duties and responsibilities of attorneys were split into 2.
Welfare LPAs
This document appoints attorneys to deal specifically with an individual’s long term care needs. The most important element of this document is that a donor (giver of the power) can appoint an attorney/s to make decisions regarding medical treatment.
Property & Affairs LPAs
This document appoints attorneys to deal with an individual’s financial affairs. This includes the donor’s property, bank accounts, shares etc. The idea being that the donor is appointing people he/she trusts to make any necessary long-term financial decisions on his/her behalf.
As to whether one or both types of LPAs are needed depends on a client’s own specific set of circumstances. It’s therefore important that professional advice is obtained when you are considering putting a Lasting Power of Attorney in place.