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Health and Welfare LPA vs Property and Finance LPA: Which Do You Need?

· 26 min

Note: The following scenario is fictional and used for illustration.

Margaret, 58, carefully set up a property and financial affairs LPA appointing her daughter Emma as attorney. She thought she'd done everything necessary to protect herself. When Margaret had a stroke two years later, Emma could access her mother's bank accounts and pay her bills without problem. But when doctors asked about Margaret's care preferences—whether to continue aggressive rehabilitation or move to palliative care—Emma discovered she had no legal authority to make that decision. Margaret had only created one type of LPA.

Margaret's situation isn't unique. During 2024-25, the Office of the Public Guardian received 1.37 million LPA applications, but many people don't realize there are two distinct types of LPA covering completely different areas of life. This article explains the key differences between health and welfare LPAs and property and finance LPAs, when each can be used, and why most people need both to ensure complete protection.

Table of Contents

The Two Types of LPA in the UK: A Quick Overview

Under the Mental Capacity Act 2005, there are exactly two types of lasting power of attorney in England and Wales. Each serves a fundamentally different purpose in protecting your future.

A health and welfare LPA allows your chosen attorney to make decisions about your medical treatment, daily care, and living arrangements. A property and financial affairs LPA gives your attorney authority to manage your money, property, and financial decisions.

These are completely separate legal documents. One cannot substitute for the other, and creating only one type leaves significant gaps in your protection.

You can create one or both types depending on your circumstances. Most people discover they need both because health and finances are deeply interconnected in later life.

Aspect Property & Financial Affairs LPA Health & Welfare LPA
Covers Money, property, investments Medical care, daily living, treatment decisions
Can be used Immediately (if you choose) or when you lose capacity Only when you've lost capacity
Examples Paying bills, selling house, managing investments Choosing care home, consenting to surgery, refusing treatment

James, 62, created both types of LPA. His property and financial affairs LPA lets his brother help manage his rental properties now, while he's still fully capable. His health and welfare LPA sits registered but unused—it will only activate if he loses capacity in future.

During 2024-25, the Office of the Public Guardian received 1.37 million LPA applications. Understanding which type you need starts with knowing what each one covers.

Property and Financial Affairs LPA: What It Covers

A property and financial affairs LPA grants your attorney authority to make decisions about your "property and affairs" under the Mental Capacity Act 2005. This covers everything related to your money and possessions.

Your attorney can handle day-to-day financial matters including paying bills, managing bank accounts, collecting pension and benefits, and dealing with tax affairs. They can speak to banks, pension providers, HMRC, and other financial institutions on your behalf.

For major financial decisions, your attorney can sell property, make investments, manage business interests, and access digital assets. They have the legal authority to sign contracts and instruct solicitors for financial matters.

However, there's a crucial limitation. Financial attorneys cannot make any decisions about your health, care, or medical treatment. Their authority is strictly limited to money and property matters.

Sarah's property and financial affairs LPA allowed her son David to sell her £340,000 house to pay for care home fees when she developed dementia. But when the care home asked about Sarah's dietary preferences and daily routine, David couldn't make those decisions—he needed a separate health and welfare LPA for that.

Under the Mental Capacity Act 2005, if an attorney becomes bankrupt, they can no longer act as property and financial affairs attorney. This restriction doesn't apply to health and welfare attorneys.

You can also appoint trust corporations as property and financial affairs attorneys. This option isn't available for health and welfare LPAs, which must be individuals.

Property and financial affairs attorneys can make most financial decisions, but you can add specific restrictions or instructions in Section 7 of the form if you want to limit their authority. Registration costs £82 per LPA, increasing to £92 from 17 November 2025.

Health and Welfare LPA: What It Covers

A health and welfare LPA gives your attorney authority to make decisions about your "personal welfare" under the Mental Capacity Act 2005. This covers all aspects of your health, care, and daily living.

For day-to-day care, your attorney can decide where you live, manage your daily routine including washing, dressing, and eating, choose what you wear, and control who you see. These seemingly small decisions become crucial when you can't express your own preferences.

Your attorney can make medical treatment decisions including consenting to or refusing treatment, speaking to doctors and nurses on your behalf, and accessing your medical records. They become your voice in healthcare discussions.

For care arrangements, your attorney can choose which care home you live in, arrange support at home, and decide on respite care. They ensure you receive appropriate care that reflects your values and preferences.

Life-sustaining treatment requires special consideration. Under Section 11(8) of the Mental Capacity Act 2005, attorneys can only make decisions about life-sustaining treatment if you explicitly grant this authority by ticking Option A in Section 7 of the LPA form.

There's a critical restriction that sets health and welfare LPAs apart. Under Section 11(7) of the Mental Capacity Act 2005, attorneys can only act when you lack capacity for the specific decision. Unlike property LPAs, health and welfare LPAs cannot be used while you still have capacity, even if registered.

When Robert, 71, was hospitalized after a fall, his health and welfare LPA allowed his wife Linda to discuss his treatment with doctors, decide which rehabilitation facility he'd move to, and make decisions about his daily care routine. Linda had explicitly been granted authority over life-sustaining treatment, so when Robert's condition deteriorated, she could legally refuse further aggressive intervention in line with his stated wishes.

Life-sustaining treatment includes mechanical ventilation, CPR, artificial nutrition and hydration, and certain medications. If you want your attorney to have authority to refuse such treatment, you must tick Option A in Section 7 of the LPA form. If you leave this blank or tick Option B, doctors will make these decisions, not your attorney.

Health and welfare attorneys must always act in your best interests and follow the principles of the Mental Capacity Act 2005, including considering your past and present wishes. They cannot simply impose their own preferences.

Your attorney must be a person, not a company or trust corporation. This ensures the deeply personal nature of health and care decisions.

The Critical Difference: When Each Type Can Be Used

The most important distinction between the two LPA types isn't what they cover—it's when they can be used. This timing difference catches many people by surprise.

For property and financial affairs LPAs, you choose at creation whether the LPA can be used immediately upon registration (with your permission) or only when you lose capacity. Most people choose immediate use, allowing attorneys to help with day-to-day finances even while they're fully capable.

For health and welfare LPAs, there's no choice. Under Section 11(7) of the Mental Capacity Act 2005, these can only be used when you've lost capacity for the specific decision. Your attorney cannot make health decisions for you while you still have capacity, regardless of whether the LPA is registered.

Mental capacity means the ability to make a specific decision at a specific time. Importantly, capacity can vary by decision type. You might have capacity to decide what to eat but not whether to have major surgery.

Doctors usually determine capacity loss, though the Court of Protection makes the final determination if there's a dispute. This assessment considers whether you can understand information relevant to the decision, retain that information, use or weigh it, and communicate your decision.

Situation Property & Financial Affairs LPA Health & Welfare LPA
You have full capacity and want help ✅ Can be used (if set to activate immediately) ❌ Cannot be used
You have temporary capacity loss (e.g., after surgery) ✅ Can be used ✅ Can be used
You have permanent capacity loss (e.g., advanced dementia) ✅ Can be used ✅ Can be used
You've died ❌ LPA ends at death ❌ LPA ends at death

Thomas, 68, set up his property and financial affairs LPA to activate immediately. When he went travelling for six months, his daughter could pay his bills and manage his rental income even though Thomas was perfectly capable—he just wanted the convenience. But his health and welfare LPA sat unused during this time, because Thomas still had full mental capacity for health decisions.

Registration processing currently takes 8-10 weeks if there are no mistakes. The Office of the Public Guardian faced a backlog of 149,400 applications in March 2024, which was cleared by November 2024 following their successful recovery plan.

Both types of LPA end when you die. At that point, your will takes over to distribute your estate.

Can the Same Person Be Attorney for Both Types?

You have complete flexibility in choosing attorneys for each type of LPA. The same person can act as attorney for both, or you can appoint completely different people.

Many people appoint the same trusted person—typically a spouse, adult child, or close friend—for both types of LPA. This simplifies matters and ensures one person can handle all aspects of your affairs if needed.

Others take a strategic approach, appointing different people based on relevant skills. You might choose a financially savvy sibling for your property LPA and a compassionate family member for your health LPA.

You can appoint multiple attorneys for each LPA. When doing so, you specify whether they act "jointly" (all must agree on every decision) or "jointly and severally" (each can act independently). You can even specify a combination where some decisions require joint action and others can be made individually.

Remember that each LPA is a separate legal document with separate registration, even if the attorneys are the same people. You'll pay the registration fee twice and complete two distinct forms.

Helen appointed her daughter Grace as sole attorney for both her property and financial affairs LPA and her health and welfare LPA. Grace handles both Helen's finances and her care decisions under one trusted relationship.

Michael took a different approach. He appointed his financially trained brother as property and financial affairs attorney, and his sister (a nurse) as health and welfare attorney. Each brings relevant expertise to their role.

David appointed his two sons as property attorneys acting "jointly" (both must agree on financial decisions), but appointed them to act "jointly and severally" for health and welfare (either can make urgent medical decisions). This arrangement requires consensus for money matters but allows quick action in medical emergencies.

The choice depends on your circumstances, relationships, and who you trust most for financial versus health decisions. There's no wrong answer—what matters is choosing people you trust completely.

Common Scenarios: Which LPA Would Apply?

Real-life situations often require specific types of LPA authority. Understanding which type applies helps you decide what protection you need.

Scenario 1: Hospital Treatment Decision

Your father has been hospitalized with pneumonia. Doctors want consent for a specific antibiotic treatment that has potential side effects.

  • Which LPA: Health and Welfare LPA only
  • Why: This is a medical treatment decision requiring consent
  • Attorney can: Discuss treatment with doctors, consent or refuse treatment, access medical records
  • Attorney cannot: Pay the hospital bill (that would need property and financial affairs LPA)

Scenario 2: Care Home Fees

Your mother needs to move into a care home costing £4,500 per month. The care home needs payment and wants to know her care preferences.

  • Which LPA: BOTH types needed
  • Why: Choosing the care home and expressing care preferences requires a health and welfare LPA. Paying the fees and potentially selling her house to fund care requires a property and financial affairs LPA
  • Important note: This is a perfect example of why both LPAs are usually necessary

Scenario 3: Paying Bills While on Holiday

You're going abroad for three months and want someone to pay your mortgage and utility bills while you're away.

  • Which LPA: Property and Financial Affairs LPA (set to activate immediately)
  • Why: Bill payment is a financial decision
  • Capacity note: You can use this LPA even while you have full capacity, if you set it to activate immediately

Scenario 4: Refusing Life-Sustaining Treatment

Your husband is in ICU after a massive stroke. Doctors say he's unlikely to regain consciousness and ask whether to continue life support.

  • Which LPA: Health and Welfare LPA—but only if you explicitly granted life-sustaining treatment authority
  • Why: This is the most serious health decision an attorney can make
  • Critical requirement: You must have ticked Option A in Section 7 of the health and welfare LPA form, or the attorney has no authority to refuse treatment

Scenario 5: Selling Property to Pay for Care

Your wife has advanced dementia and her care costs £6,000 per month. You need to sell her house to pay for care.

  • Which LPA: Property and Financial Affairs LPA only
  • Why: Selling property is a financial decision
  • Attorney can: Instruct solicitors, sign contracts, access her bank account for sale proceeds

Scenario 6: Daily Care Routine

Your father has dementia. The care home asks what time he prefers to wake up, whether he likes tea or coffee, and if he wants to attend activities.

  • Which LPA: Health and Welfare LPA only
  • Why: Daily routine and personal preferences are welfare decisions
  • Capacity note: Can only be used once your father lacks capacity to express these preferences himself

Scenario 7: Managing Investments

Your elderly parent wants help managing their investment portfolio worth £200,000.

  • Which LPA: Property and Financial Affairs LPA
  • Why: Investment decisions are financial decisions
  • Important choice: If your parent still has capacity, they could set the LPA to activate immediately so you can help now, or set it to activate only when they lose capacity

Scenario 8: Medical Records Access

You need to collect your mother's medical records from her GP to share with specialists.

  • Which LPA: Health and Welfare LPA only
  • Why: Accessing medical records is a health and welfare matter
  • Capacity requirement: Your mother must have lost capacity for the specific health decision you're making, or the GP won't share records under the LPA
Situation Property & Finance LPA Health & Welfare LPA Both Needed
Paying bills ✅ ❌
Choosing care home ❌ ✅
Paying care home fees ✅ ❌
Consenting to surgery ❌ ✅
Selling property ✅ ❌
Refusing life-sustaining treatment ❌ ✅ (if explicitly granted)
Moving into care home (choosing + paying) ✅
Managing care and paying for it ✅

Why Most People Need Both Types of LPA

Health and finances are deeply interlinked in later life. Most situations requiring an LPA involve both areas, which is why creating only one type leaves dangerous gaps.

If you only have a property and financial affairs LPA, your attorneys can pay for care but can't choose where you live. They can manage your finances but can't consent to medical treatment. They can access your financial records but not your medical records.

These gaps force families into impossible positions. When Robert needed a feeding tube but his family had no health and welfare LPA, they couldn't legally consent. The hospital had to seek court approval, delaying treatment and causing enormous stress.

If you only have a health and welfare LPA, your attorneys can choose your care home but can't pay the fees. They can consent to treatment but can't access funds to pay for private care. They can make daily care decisions but can't manage the money needed to implement them.

The practical reality is stark. Without proper authority, family members must apply to the Court of Protection. The application fee alone is £371, and legal costs typically range from £3,000 to £10,000.

Compare that to the total cost of both LPAs: £164 currently, or £184 after the fee increase on 17 November 2025. Fee exemptions are available for those on means-tested benefits, and fee remissions (50% reduction) apply if your income is under £12,000 per year.

When Elizabeth, 79, had a stroke, her son Mark had her property and financial affairs LPA. He could pay her bills and manage her £180,000 in savings. But when doctors asked whether to insert a feeding tube, Mark had no legal authority to decide. The family had to apply to the Court of Protection—a six-month process costing £4,200 in legal fees—because Elizabeth hadn't created a health and welfare LPA. That £82 LPA she didn't register would have saved £4,200 and six months of family stress.

While there are limited situations where only one LPA might be appropriate, most people find that health and finances are too interconnected to separate. Creating both LPAs provides complete protection without gaps.

Cost, Registration, and Setting Up Both LPAs

Creating both types of LPA involves straightforward steps and clear costs. Understanding the process helps you plan effectively.

The registration fee is currently £82 per LPA. This increases to £92 per LPA from 17 November 2025. The total for both types is £164 currently, or £184 after the fee increase.

Fee exemptions eliminate the cost entirely if you receive means-tested benefits like Income Support or Jobseeker's Allowance. Fee remissions reduce the cost to £41 per LPA (£46 after November 2025) if your annual income is under £12,000.

Processing takes 8-10 weeks if there are no mistakes on your forms. You'll need separate forms for each type: LP1H for health and welfare, and LP1F for property and financial affairs.

You can complete both online at https://www.lastingpowerofattorney.service.gov.uk or use paper forms. Each LPA must be signed, witnessed, and certified separately. Both must be registered with the Office of the Public Guardian before they can be used—even signed and witnessed LPAs cannot be used until registered.

Follow these steps to create both LPAs:

  1. Choose your attorney(s) for each type of LPA (can be same or different people)
  2. Complete both LPA forms (health and welfare plus property and financial affairs)
  3. Get each form certified by a certificate provider
  4. Sign each form with a witness present
  5. Get your attorney(s) to sign each form
  6. Register both LPAs with the Office of the Public Guardian (£82 each, or £92 after November 2025)
  7. Wait 8-10 weeks for registration
  8. Receive registered LPAs—property LPA can be used immediately (if you chose that option), health LPA can be used when you lose capacity
Method Cost for Both LPAs Pros Cons
DIY (GOV.UK online service) £164 (£184 after Nov 2025) Cheapest option, guided process Takes time, must check own mistakes
Online LPA service £200-£400 Guided, error-checking, convenience More expensive than DIY
Solicitor £600-£1,200+ Expert review, complex situations handled Most expensive, requires appointments

Brian, 66, set up both LPAs using the GOV.UK online service. The process took him three evenings to complete both forms carefully. His daughter acted as certificate provider (free), and he registered both for £164. Total cost: £164 and about six hours of his time. Brian's solicitor had quoted £850 for the same service.

The method you choose depends on your comfort with legal forms, the complexity of your situation, and your budget. All routes result in legally valid LPAs if completed correctly.

Making Your Decision: Which LPA Do You Need?

Your specific circumstances determine whether you need one or both types of LPA. This framework helps you make an informed decision.

You likely need both types if:

  • You want complete protection for health and finances (the most common situation)
  • You're over 50 and planning ahead for potential future incapacity
  • You have significant assets like property, savings, or investments and want someone to make health decisions
  • You have health conditions that might affect capacity in future
  • You want the same person to handle everything for you without gaps

You might need only a property and financial affairs LPA if:

  • You want help managing finances while you still have capacity (for example, when going abroad or if you have mobility issues)
  • You have complex financial affairs but strong views about making your own health decisions as long as possible
  • You've created an Advance Decision (living will) covering health decisions

However, this leaves gaps for non-life-sustaining health decisions that Advance Decisions don't cover.

You might need only a health and welfare LPA if:

  • You have minimal assets or finances but want someone to make care and medical decisions
  • Your finances are handled jointly through joint bank accounts with your spouse but you want health decision protection

This approach also creates problems—attorneys can't access money to pay for the care they're arranging.

Consider these important factors in your decision:

Life stage matters. Someone under 40 with no health issues might prioritize a property LPA for convenience. Anyone over 60 should seriously consider both types.

Family dynamics affect attorney selection. Complex family relationships might need careful consideration of who handles financial versus health decisions.

Your health status influences urgency. Existing conditions or a family history of dementia makes health and welfare LPAs more immediately important.

Asset complexity drives the need for property LPAs. Significant property holdings or investments make financial protection essential.

Geographic plans matter too. If you're planning to move abroad, you might prioritize a property LPA for managing UK assets remotely.

Rachel, 58, has a house worth £320,000, £80,000 in savings, and no serious health issues. She created both types of LPA appointing her daughter for both. Total cost: £164. This gives complete protection for health and finances.

James, 45, owns multiple rental properties and wants his brother to help manage them while he works abroad for two years. He created a property and financial affairs LPA set to activate immediately. He plans to create a health and welfare LPA when he's older.

Susan, 72, has early-stage Parkinson's disease. She created both LPAs urgently. Her health and welfare LPA ensures her son can make medical decisions when her condition progresses. Her property LPA (set to activate on capacity loss) protects her £250,000 estate.

Take these action steps:

  1. Assess your situation using the framework above
  2. Identify who you'd trust as attorney(s) for each type
  3. Decide whether to DIY, use an online service, or consult a solicitor
  4. Create and register your chosen LPA(s)—don't delay as LPAs can only be created while you have capacity
  5. Tell your attorney(s) where you've stored the registered LPAs

The most important thing is to create LPAs while you still have full mental capacity. Once you've lost capacity, it's too late—your family will need to apply to the Court of Protection, which is expensive, time-consuming, and stressful. Even if you only create one type of LPA now, that's better than none. You can always create the second type later if your circumstances change.

Frequently Asked Questions

Q: What is the difference between health and welfare LPA and property and financial affairs LPA?

A: A health and welfare LPA allows your attorney to make decisions about your medical treatment, daily care, and living arrangements, but only after you've lost mental capacity. A property and financial affairs LPA lets your attorney manage your money, property, and financial matters, and can be used immediately upon registration (with your permission) or when you lose capacity.

Q: Can I have both types of LPA?

A: Yes, and most people should have both. The two LPAs cover completely different areas of your life—one handles health and care decisions, the other manages finances and property. Each costs £82 to register (increasing to £92 from 17 November 2025), so having both costs £164 total.

Q: When can a health and welfare LPA be used?

A: A health and welfare LPA can only be used once it's registered and you've lost mental capacity to make the specific decision yourself. Your attorneys cannot make health decisions for you while you still have capacity, even if the LPA is registered.

Q: When can a property and financial affairs LPA be used?

A: When creating a property and financial affairs LPA, you choose whether it can be used immediately upon registration (with your permission) or only when you lose capacity. Many people choose immediate use so attorneys can help with day-to-day finances if needed.

Q: Can my health and welfare attorney make financial decisions?

A: No. If your LPA is for health and welfare, your attorneys cannot make decisions about your money or property. Similarly, property and financial affairs attorneys cannot make health or care decisions. The two types of LPA are completely separate.

Q: Do I need to appoint the same people for both LPAs?

A: No, you can appoint different attorneys for each type of LPA. You might choose a family member who understands your values for health decisions, and someone financially savvy for property matters. However, many people appoint the same trusted person for both.

Q: Can a health and welfare LPA be used to refuse life-sustaining treatment?

A: Only if you explicitly grant this authority in the LPA document. Under the Mental Capacity Act 2005, attorneys cannot refuse life-sustaining treatment on your behalf unless you've given express permission in Section 7 of the LPA form by ticking the appropriate box.

Conclusion

Key takeaways:

  • Understand the fundamental difference: Property and financial affairs LPAs cover money and property decisions; health and welfare LPAs cover medical treatment and care decisions. They're completely separate legal documents.
  • Know when each activates: Property LPAs can be used immediately (if you choose) or when you lose capacity. Health LPAs can only be used after you've lost capacity.
  • Consider creating both: Most people need both types because health and finances are interconnected in later life. The total cost (£164, or £184 after November 2025) is far less than Court of Protection costs if you leave gaps.
  • Choose your attorneys carefully: You can appoint the same person for both LPAs or different people based on their skills. What matters most is choosing people you trust completely.
  • Don't delay: LPAs can only be created while you have mental capacity. Once you've lost capacity, it's too late—your family faces expensive Court of Protection applications instead.

Creating LPAs isn't about expecting the worst—it's about protecting the people you love from impossible decisions. When Margaret's daughter Emma couldn't make care decisions because her mother had only created one type of LPA, the gap caused months of stress and uncertainty. Taking two evenings to create both LPAs now means your family can focus on caring for you, not navigating legal barriers.

Need Help with Your Will?

Understanding the difference between LPA types helps you plan for potential incapacity, but it's equally important to plan for what happens after you die. LPAs end when you die—that's when your will takes over to distribute your estate and name guardians for your children.

Create your will with confidence using WUHLD's guided platform. For just £99.99, you'll get your complete will (legally binding when properly executed and witnessed) plus three expert guides. Preview your will free before paying anything—no credit card required.

Legal Disclaimer: This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

Legal Disclaimer:

This article provides general information only and does not constitute legal or financial advice. WUHLD is not a law firm and does not provide legal advice. Laws and guidance change and their application depends on your circumstances. For advice about your situation, consult a qualified solicitor or regulated professional. Unless stated otherwise, information relates to England and Wales.

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