What is a Lasting Power of Attorney? A Complete UK Guide

A Lasting Power of Attorney is one of the most important legal documents you'll ever create, yet surprisingly few people understand what it actually does. In simple terms, it's a legal document that lets you choose someone you trust to make decisions on your behalf if you ever become unable to make them yourself.

I've helped over 2,000 families set up LPAs in my career, and the most common thing I hear is: "I wish I'd done this sooner." Many people assume they don't need one until they're older, but accidents and illness can affect anyone at any age. Having an LPA in place gives you control over who would manage your life if the unexpected happened.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that allows you (the 'donor') to appoint one or more people (your 'attorneys') to make decisions on your behalf. The key word here is 'lasting' – unlike an ordinary power of attorney, an LPA continues to be valid even if you lose mental capacity.

This is crucial because mental capacity is precisely when you'd need someone to step in. Whether it's due to dementia, a stroke, a serious accident, or any condition that affects your ability to make decisions, your chosen attorneys can act for you.

Without an LPA, your family would have no automatic right to manage your finances, sell your property, or make decisions about your care – even your spouse. The only alternative is applying to the Court of Protection for a deputyship, which is expensive, time-consuming, and means a stranger decides who looks after your affairs rather than you.

The Two Types of LPA

In England and Wales, there are two separate types of LPA, each covering different aspects of your life. Most people choose to set up both, but you can have one without the other.

Property and Financial Affairs LPA

This type covers all your financial matters, including:

• Managing your bank accounts and paying bills
• Collecting your pension and benefits
• Buying and selling property
• Managing investments and savings
• Dealing with your tax affairs
• Running your business (if applicable)

One important feature of this LPA is that it can be used while you still have capacity, if you want. For example, if you're going abroad for an extended period or simply want help managing complex finances, your attorney can assist you. You just need to specify this in the document.

Health and Welfare LPA

This type covers decisions about your health and daily care, including:

• Where you should live (your own home, with family, or in a care home)
• Your day-to-day care (washing, dressing, eating)
• Medical treatment decisions
• Life-sustaining treatment (if you give this authority)
• Moving into a care home
• Who you have contact with

Unlike the property and financial LPA, this one can only be used when you've lost capacity to make the specific decision in question. Your attorneys can't make health decisions for you while you're still capable of making them yourself.

Why Do You Need an LPA?

Many people put off setting up an LPA because they think it's only for the elderly or unwell. The reality is that anyone over 18 should consider having one. Here's why:

Accidents don't discriminate. A car accident, a fall, or a sudden illness can leave anyone temporarily or permanently unable to manage their affairs. It's not just about dementia.

It's about control. With an LPA, you choose who makes decisions for you. Without one, a court official who has never met you makes that choice.

It protects your family from stress. I've seen families torn apart trying to manage a loved one's affairs without an LPA. The process of getting a deputyship is stressful, expensive, and can take months – all while bills go unpaid and important decisions can't be made.

It's much cheaper to plan ahead. Setting up an LPA costs £82 per document to register. Applying for deputyship costs £365 just for the application, plus ongoing supervision fees of £320 per year, plus potential legal fees of £1,000 or more.

Banks and institutions prefer LPAs. Many banks will freeze accounts the moment they suspect someone has lost capacity. Having a registered LPA makes unfreezing those accounts straightforward.

Who Can Be Your Attorney?

Your attorney must be someone you trust completely. They should be:

• Over 18 years old
• Mentally capable themselves
• Not bankrupt (for property and financial LPA)
• Willing to take on the responsibility

Most people choose family members – a spouse, adult children, or siblings. But you can also choose a close friend or a professional (like a solicitor), though professionals will typically charge for their services.

You can appoint more than one attorney. If you do, you'll need to decide whether they should act:

• Jointly – they must all agree on every decision
• Jointly and severally – they can act together or independently
• Jointly for some decisions, severally for others – you specify which

For most families, jointly and severally works best. It gives flexibility – one attorney can handle day-to-day banking while all of them consult on major decisions like selling a house.

How to Set Up an LPA

Setting up an LPA involves several steps:

1. Choose your attorneys – Decide who you want to act for you and discuss it with them first. They need to understand what's involved and agree to the responsibility.
2. Complete the forms – You can do this online at GOV.UK or using paper forms. The forms ask for your details, your attorneys' details, and any instructions or preferences you want to include.
3. Add a certificate provider – Someone needs to certify that you understand what you're signing and aren't being pressured. This can be someone who has known you personally for at least 2 years, or a professional like a doctor, solicitor, or social worker.
4. Sign in the right order – The document must be signed by you first, then your certificate provider, then your attorneys. Getting this order wrong is one of the most common reasons LPAs get rejected.
5. Register with the Office of the Public Guardian – An LPA can only be used once it's registered. This currently takes 8-10 weeks and costs £82 per LPA.

How Much Does an LPA Cost?

The registration fee is £82 per LPA, so £164 if you're setting up both types. If you're on certain means-tested benefits or have a low income (under £12,000), you may qualify for a reduced fee or exemption.

If you prepare the LPA yourself using the online service, that's your only cost. However, many people choose to get professional help, which typically costs:

• Will-writing services: £150-£300 per LPA
• Solicitors: £200-£500 per LPA
• Through Ask an Estate Planner: Get free initial advice, then choose a professional based on their answers to your specific questions

Professional help can be worthwhile, especially if you have complex family situations, business interests, or want guidance on how to word your instructions.

Common Mistakes to Avoid

After reviewing thousands of LPAs, these are the mistakes I see most often:

Waiting too long. You must have mental capacity when you sign an LPA. If there's any doubt about your capacity, you'll need a medical assessment. By then, it may be too late.

Choosing the wrong attorney. Pick someone reliable and organised, not just whoever is closest to you. Consider whether they'll have time, whether they live nearby enough to help, and whether they're good with paperwork.

Signing in the wrong order. The document must be signed: you first, then certificate provider, then attorneys. Any other order and the LPA will be rejected.

Not registering it. An unregistered LPA is useless. Don't wait until you need it to register – do it as soon as it's signed.

Not telling anyone where it is. Keep your LPA somewhere safe but accessible, and make sure your attorneys and family know where to find it.

Being too vague with instructions. If you have specific wishes – like wanting to stay in your home as long as possible, or having certain people excluded from decisions about your care – write them clearly in the preferences section.