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What Is a Lasting Power of Attorney (LPA)? A Beginner's Guide

· 25 min

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

When Margaret turned 68, she thought she was being proactive by organizing her paperwork and writing her will. But when she developed early-stage dementia two years later, her family discovered a critical gap in her planning: she had no lasting power of attorney. Her son couldn't access her bank accounts to pay her care home fees. Her daughter couldn't speak to doctors about her treatment options. The family had to apply to the Court of Protection—a process that took 9 months and cost over £3,000—to get permission to make decisions Margaret could no longer make herself.

Margaret's situation isn't unusual. In 2024, over 1.49 million LPAs were registered in the UK—a 28% increase from the previous year. Yet many people still don't understand what an LPA is or why they need one until it's too late.

This guide explains everything you need to know about lasting powers of attorney in plain English: what they are, why you need one, the two types available, who can be your attorney, and how to set one up.

Table of Contents

What Is a Lasting Power of Attorney?

A lasting power of attorney (LPA) is a legal document that allows you to appoint someone you trust—called an attorney—to make decisions on your behalf if you lose mental capacity. Think of an LPA as giving someone you trust a legal "key" to make decisions when you can't.

The LPA was created under the Mental Capacity Act 2005 and is administered by the Office of the Public Guardian (OPG). Mental capacity means the ability to understand information, retain it, weigh your options, and communicate your decision. If you lose this ability due to illness, injury, or cognitive decline, your attorney can step in.

It's important to understand what an LPA is—and what it isn't. A will says what happens to your assets after death. An LPA says who makes decisions while you're alive but unable to decide yourself. They're complementary documents that work together to protect your wishes.

In the LPA process, you're called the "donor" (the person making the LPA), and the person you appoint is your "attorney" or "donee." The Office of the Public Guardian regulates LPAs and investigates concerns about attorney conduct.

LPAs apply to England and Wales. Scotland has Continuing Power of Attorney and Welfare Power of Attorney under different legislation. Northern Ireland has Enduring Power of Attorney and is introducing LPAs under separate laws.

The popularity of LPAs has grown dramatically. Over 1.49 million LPAs were registered in 2024—a 28% increase from the previous year. LPAs now make up the vast majority of all powers of attorney registered in the UK.

Here's what an LPA covers—and what it doesn't:

What an LPA covers What an LPA doesn't cover
Decisions while you're alive but incapacitated What happens after death (that's your will)
Medical treatment choices Decisions you're still capable of making yourself
Managing your finances Decisions made by others (e.g., your doctor's clinical judgment)

Why Do You Need a Lasting Power of Attorney?

Without an LPA, your family faces a difficult reality: no one can legally make decisions for you, no matter how close they are to you. Your partner can't access your bank account. Your adult children can't speak to your doctor. Your parents can't sell your house to pay for your care.

When you lose mental capacity without an LPA in place, your family must apply to the Court of Protection to become your "deputy"—a legal role that grants them decision-making power. This process typically takes 9 months or longer and costs over £3,000 in legal fees and court costs. It's stressful, expensive, and delays critical decisions about your care and finances.

David, 52, experienced this firsthand. After a severe stroke left him unable to communicate, his partner discovered she couldn't access his savings to pay their mortgage. Without an LPA, she had no legal authority over his finances. While she waited months for Court of Protection approval, they nearly lost their home.

Anne, 71, took a different approach. Diagnosed with Alzheimer's at 68, she'd already set up both types of LPA at age 65. When her condition progressed, her daughter could manage her finances and make care decisions smoothly throughout her illness. No court applications, no delays, no additional costs beyond the £184 registration fee.

Common situations where LPAs become essential include dementia diagnosis, stroke, serious accident, progressive illness like Parkinson's or MS, and sudden incapacity from brain injury or coma. These events don't just affect elderly people—unexpected incapacity can happen at any age.

An LPA protects three groups: you (your wishes are respected by someone who knows you), your family (they can act legally without court involvement), and vulnerable people who might otherwise be exploited when no one has authority to intervene.

Tom, 45, discovered this when a serious car accident left him in a coma for 3 months. His wife had LPA and could make medical decisions aligned with his values, including consenting to experimental treatment that helped his recovery. Without the LPA, doctors would have made decisions without family input.

The peace of mind an LPA brings is invaluable. You're setting up protection while you don't need it, so it's there when you do. Since 2 million LPAs have been added to the "Use an LPA" online service since 2020, more families are experiencing how much easier this makes difficult times.

The contrast is stark: 8-10 weeks and £92 to set up an LPA now, versus 9+ months and £3,000+ to get Court of Protection approval when crisis hits. The choice is clear.

The Two Types of LPA: Health and Welfare vs Property and Financial Affairs

There are two distinct types of LPA, each covering different aspects of your life. Most people need both for complete protection.

A Property and Financial Affairs LPA covers all decisions about your money and property. This includes managing bank accounts, paying bills and debts, collecting benefits and pension, selling your house, managing investments, and handling tax affairs. Crucially, this LPA can be used as soon as it's registered—you don't have to wait until you lose capacity. You can choose whether your attorney can act immediately or only when you lack capacity.

A Health and Welfare LPA covers medical treatment and personal care decisions. This includes consenting to or refusing medical treatment, deciding where you live, choosing care arrangements, and managing your daily routine and diet. Unlike the financial LPA, this one can only be used after you've lost mental capacity—your attorney can't make health decisions while you're still capable.

The Health and Welfare LPA includes a critical provision about life-sustaining treatment. You must explicitly grant this power if you want your attorney to refuse life-sustaining treatment on your behalf. This isn't automatic—you tick a box in Section 6 of the form to give this authority.

Emma set up both LPAs before developing vascular dementia. Her son used the Property and Financial Affairs LPA to manage her rental income and pay care home fees. He used the Health and Welfare LPA to choose a care home that matched her religious values and dietary requirements. Having both meant he could handle all aspects of her care legally and in line with her preferences.

Here's how the two types compare:

Feature Property & Financial Affairs Health & Welfare
Covers Money, property, bills Medical care, daily living
Can be used Immediately or when you lack capacity Only when you lack capacity
Life-sustaining decisions No Yes (if explicitly granted)
Registration cost (2025) £92 £92
Who needs it Everyone with assets/income Everyone who wants control over care

Do you need both? Ideally, yes. They cover different aspects of your life, and you can't use one to make decisions covered by the other. If you only have a Property and Financial Affairs LPA, no one can legally consent to medical treatment for you. If you only have a Health and Welfare LPA, no one can access your money to pay for that care.

The legal basis for both types is the Mental Capacity Act 2005, Part 1. The prescribed forms are LP1F for financial affairs and LP1H for health and welfare. Both must be registered with the Office of the Public Guardian before they can be used.

Who Can Be Your Attorney?

Choosing the right attorney is one of the most important decisions you'll make. This person will have significant power over your life when you can't make decisions yourself, so trust is paramount.

The basic requirements are straightforward: your attorney must be 18 or older and have mental capacity. For Property and Financial Affairs LPAs, your attorney cannot be bankrupt or subject to a Debt Relief Order. Professional care workers can only be attorneys in exceptional circumstances—for example, if they're your only living relative.

Most people choose partners or spouses (42%), adult children (35%), siblings (15%), or close friends (8%). But these statistics shouldn't dictate your choice. Choose the person who's genuinely best suited for the role, not the person you feel obligated to choose.

Don't just choose your oldest child by default. Choose the person who's most financially responsible for your financial LPA, and the person who best understands your values and wishes for your health LPA. These don't have to be the same person.

You can appoint multiple attorneys to act together. If you choose two or more attorneys, you must decide how they'll make decisions:

Jointly: They must agree on every decision. This provides a safeguard but can be inflexible. What if one attorney is on holiday when a decision needs making?

Jointly and severally: They can act independently. This is flexible but provides less oversight—any one attorney can make decisions alone.

Combination: They act jointly for some decisions (like selling your house) and jointly and severally for others (like paying bills). This balances safeguards with practicality.

You can also appoint replacement attorneys—backup choices in case your original attorney can't or won't act. Your replacement steps in if your original attorney dies, loses capacity, or chooses to resign.

Common mistakes to avoid when choosing attorneys:

  • ❌ Appointing someone who lives abroad (difficult to act quickly when needed)
  • ❌ Appointing all your children jointly to avoid hurt feelings (creates gridlock if they disagree)
  • ❌ Appointing someone you haven't discussed this with first (they may not want the responsibility)
  • ✅ Have honest conversations with potential attorneys about your wishes
  • ✅ Consider practical factors: geographic location, availability, financial competence
  • ✅ Choose people who'll respect your wishes, not impose their own views

Remember that being an attorney carries legal duties under the Mental Capacity Act. Your attorney must act in your best interests, follow any instructions you've included in the LPA, keep your money separate from their own, and keep records of decisions made. The Office of the Public Guardian investigates complaints and can remove attorneys who abuse their power.

When Should You Set Up an LPA?

The golden rule: set up an LPA while you still have full mental capacity. You cannot create an LPA after you've lost capacity. If you're thinking "I'll do it later when I need it," you're already too late—by the time you need it, you can't make one.

There's no minimum age (beyond 18) and no requirement that you're ill or elderly. The ideal timing is as soon as you're thinking about it. Most people set up LPAs in their 50s to 70s, but younger people increasingly recognize the value of having this protection in place.

Sarah, 38, set up an LPA before major brain surgery. She's glad she did—complications left her temporarily unable to communicate for two weeks. Her husband could make medical decisions using her Health and Welfare LPA, ensuring treatment aligned with her values during a critical time.

Can you still create an LPA after a dementia diagnosis? Yes—this is a critical point many people misunderstand. You can make an LPA after diagnosis as long as you still have mental capacity to understand what you're doing. Many people with dementia retain capacity for significant time after diagnosis.

Robert, 74, was diagnosed with Alzheimer's disease at age 73. He worried he'd left it too late. But when a solicitor assessed his capacity, Robert could still understand what an LPA was, why he needed one, and who he wanted to appoint. He successfully set up both types of LPA. Six months later, his capacity had declined to the point where he couldn't have made those decisions.

Mental capacity for making an LPA means you must understand what an LPA is, the consequences of making one, and who you're appointing. This is assessed at the time you create the document, not when you register it.

If you have a progressive condition like Alzheimer's, Parkinson's, or MS, set up your LPA immediately after diagnosis. Your window of opportunity may be shorter than you think, and having legal protection in place early means one less worry as your condition progresses.

Unexpected incapacity doesn't just happen to elderly people. Stroke, serious accident, brain injury, sudden illness, or complications from surgery can happen at any age. Young and healthy people increasingly set up LPAs as part of comprehensive life planning, alongside their will and life insurance.

Before major surgery or extended international travel, consider setting up an LPA. If something goes wrong and you're incapacitated, your family will have the legal authority they need immediately.

The reality is stark: You can only create an LPA while you have mental capacity. Don't wait until you need it, because by then it's too late.

How to Set Up a Lasting Power of Attorney

Setting up an LPA involves five steps, and the entire process takes about 8-10 weeks from start to finish if there are no errors in your application.

Step 1: Choose Your Attorney(s)

Decide who you trust to make decisions for you. Have honest conversations about the responsibilities involved and your specific wishes. Consider whether you need replacement attorneys as backups. Don't skip the conversation—your attorney needs to understand what you're asking of them and agree to take on this responsibility.

Step 2: Complete the LPA Forms

You have two options: the free online service or paper forms.

The online option is available at lastingpowerofattorney.service.gov.uk. This free GOV.UK service provides step-by-step guidance through each section of the form. It's designed for straightforward situations and most people find it easier than paper forms.

The paper option means downloading forms LP1F (Property and Financial Affairs) or LP1H (Health and Welfare) from GOV.UK. You fill them in by hand or type into the PDF. Paper forms work better if you have complex requirements or prefer working offline.

In the forms, you'll include your details and your attorney's details, any instructions (things your attorney must do) or preferences (things you'd like them to consider), and state when the LPA can be used (for financial LPAs, you choose whether immediately or only when you lack capacity).

Step 3: Get a Certificate Provider

A certificate provider is someone who confirms you understand what you're doing and aren't being pressured or coerced. They must either have known you for at least 2 years (like a friend, neighbor, or colleague) or have relevant professional skills (solicitor, doctor, social worker).

Your certificate provider cannot be a family member, one of your attorneys, or a partner of your attorney. They sign Section 10 of the LPA form after having a conversation with you about what you're doing.

Step 4: Sign and Witness

The signing order matters—if you get this wrong, your LPA will be invalid.

You (the donor) sign first, with a witness present. Your witness must be 18 or older and cannot be your attorney. Then your attorney(s) sign, each with their own witness present. Different attorneys should have different witnesses. Sign in the order specified on the form—donor first, then attorneys.

Step 5: Register with Office of the Public Guardian

Send your completed forms to the OPG with the £92 registration fee (per LPA). If you've named people to be notified in Section 5, you must notify them before sending the application. The OPG processes your application, which takes 8-10 weeks if there are no mistakes.

Your LPA cannot be used until it's registered. Even if you've signed all the paperwork, it has no legal effect until the OPG confirms registration and returns your stamped LPA to you.

The process timeline looks like this:

Week 0: Complete forms
Week 1: Sign and witness
Week 2: Send to OPG
Weeks 3-12: OPG processes
Week 12: LPA registered and returned

Common errors that delay registration include wrong signing order (donor must sign before attorneys), missing signatures or dates, certificate provider being ineligible (too closely related to donor or attorney), and incorrect fee or missing evidence for fee reduction.

The online service is free and walks you through each step with built-in checks that prevent common errors. Use it unless you have complex requirements like trusts, business interests, or international property. Don't post your LPA at the last minute—factor in the 8-10 week processing time and plan ahead.

How Much Does an LPA Cost in 2025?

The good news: setting up an LPA is significantly cheaper than most people think. The bad news: the fee is increasing in November 2025.

Current costs are £82 per LPA until 16 November 2025. From 17 November 2025, the fee increases to £92 per LPA. Since most people need both types (Property and Financial Affairs plus Health and Welfare), the total cost is £184 from November 2025.

The fee applies to each LPA separately—you pay twice if you're setting up both types. This is just the registration fee. Creating the LPA itself is free if you use the online service.

If you earn less than £12,000 per year (gross income before tax), you can apply for a 50% fee reduction. The reduced fee is £46 per LPA instead of £92. You'll need to provide evidence: last 2 years' tax self-assessment forms, a letter from your employer confirming salary, or pension and benefit award letters.

You may qualify for complete fee exemption (£0) if you receive Income Support, income-based Jobseeker's Allowance, income-related Employment and Support Allowance, Pension Guarantee Credit, Universal Credit, Housing Benefit, or Council Tax Reduction. You'll need a current benefit award letter dated within the last 3 months.

Apply for fee reduction or exemption before sending your LPA. Include the evidence with your application, not after.

How does the DIY cost compare to using a solicitor?

Option Cost
DIY (online GOV.UK service) £92 per LPA (registration only)
DIY (paper forms) £92 per LPA (registration only)
Solicitor to draft + register £300-£800 per LPA
Solicitor for both LPAs £600-£1,500 total

Unless your situation is complex—business assets, international property, trusts, or concerns about mental capacity—the free online service is sufficient. You'll save £600 or more in solicitor fees.

The Office of the Public Guardian processes over 1.49 million LPAs annually. The standard processing time is 8-10 weeks for error-free applications. Rush processing isn't available, so plan ahead.

Compare this to Court of Protection deputyship if you don't have an LPA: application fees of £371-£485, solicitor fees of £2,000-£4,000, and ongoing annual supervision fees. The total cost exceeds £3,000, and the process takes 9 months or longer. An LPA is dramatically cheaper and faster.

LPA vs EPA: What's the Difference?

If you're researching lasting powers of attorney, you may have heard about enduring powers of attorney (EPAs). Understanding the difference is important, especially if you or a family member has an old EPA.

An EPA is an Enduring Power of Attorney—the predecessor to the LPA. EPAs could only be created before 1 October 2007. After that date, the only option was to create a lasting power of attorney. EPAs only covered property and financial decisions, not health and welfare.

Here's how EPAs differ from LPAs:

Feature EPA (pre-2007) LPA (post-2007)
Still valid? Yes, if made before Oct 2007 Current system
Health decisions? No Yes (separate Health LPA)
When register? Only when donor loses capacity Before use (recommended)
When use? Immediately (no registration until capacity lost) After registration
Scope Property/financial only Two types: property/financial + health/welfare

If you have a valid EPA made before October 2007, it still works for financial decisions. You don't have to replace it. However, EPAs have significant limitations compared to modern LPAs.

Consider adding a Health and Welfare LPA to complement your EPA. Your EPA covers financial matters, but someone still needs legal authority to make medical and care decisions. A Health and Welfare LPA fills this gap.

Consider replacing your EPA with a new Property and Financial Affairs LPA if your circumstances have changed significantly—different attorney needed, new assets acquired, relationship breakdown with original attorney, or instructions and preferences you'd like to add.

If your parent made an EPA in 2005, it's still valid for managing their finances. But consider adding a Health and Welfare LPA so someone can legally make medical decisions as well.

EPAs only need to be registered when the donor is losing or has lost capacity. Use form EP2PG to register with the OPG. You must notify the donor (unless they lack capacity) and specified relatives listed in the EPA. The registration fee is the same as for an LPA: £92 from November 2025.

EPAs are becoming increasingly rare. The vast majority of powers of attorney registered now are LPAs, reflecting the 18 years that have passed since the system changed. If you're creating a new power of attorney today, you'll be making an LPA, not an EPA.

Common Questions About Lasting Powers of Attorney

Q: Can I change or cancel my LPA after it's registered?

A: Yes. You can cancel (revoke) your LPA at any time as long as you still have mental capacity. You'll need to notify the OPG and your attorney(s). If you want to make changes like choosing a different attorney or adding new instructions, you'll need to revoke the old LPA and create a new one—you can't just amend it. Make sure your attorney knows you've revoked the LPA so they don't try to use it.

Q: Can my attorney do whatever they want with my money?

A: No. Attorneys have strict legal duties under the Mental Capacity Act. They must act in your best interests, follow your instructions and preferences in the LPA, keep your money completely separate from their own, keep records of decisions made, and not take advantage of their position. The Office of the Public Guardian investigates complaints and can remove attorneys who abuse their power. Attorneys can face criminal charges for fraud or theft.

Q: What's the difference between an LPA and a will?

A: An LPA covers decisions while you're alive but unable to make them yourself due to loss of mental capacity. A will covers what happens to your estate after you die. You need both documents for comprehensive estate planning—they serve different purposes and work together. Your LPA becomes invalid when you die, and your will becomes active. Neither can replace the other.

Q: What happens if I don't have an LPA and I lose capacity?

A: Your family must apply to the Court of Protection to become your "deputy"—a legal role that grants decision-making power. This process typically takes 9 months or longer and costs over £3,000 in application fees, legal fees, and court costs. During this time, no one can legally make decisions for you, which can delay medical treatment and leave bills unpaid. Court-appointed deputies also face ongoing annual supervision fees.

Q: Can I have different attorneys for health and financial LPAs?

A: Yes, and many people do. You might choose your spouse for financial decisions because they understand your finances, and your adult daughter for health decisions because she's a nurse who understands medical care. There's no requirement that the same person be attorney for both types. Choose whoever is best suited for each role.

Q: Will my LPA be valid in other countries?

A: Generally, no. An LPA made in England and Wales is only valid in England and Wales. Scotland has its own system (Continuing Power of Attorney and Welfare Power of Attorney). Northern Ireland has Enduring Power of Attorney. If you own property abroad or spend significant time in another country, you may need to create equivalent documents under that country's laws. Consult a solicitor who specializes in international estate planning.

Q: How will my attorney prove they have authority?

A: Once your LPA is registered, you and your attorney can create an account on the "Use an LPA" online service. This lets you give organizations like banks and healthcare providers access to view the details of your LPA online. You can also show the physical stamped LPA document. Over 2 million LPAs have been added to the Use an LPA service since 2020, making it easier for attorneys to prove their authority.

Conclusion

Key takeaways:

  • Understand the basics: An LPA lets someone you trust make decisions if you can't. There are two types: one for money, one for health.
  • Act while you can: You can only create an LPA while you have mental capacity—don't wait until you need it because by then it's too late.
  • Consider both types: Most people benefit from having both Property and Financial Affairs and Health and Welfare LPAs for complete protection.
  • Choose attorneys carefully: Pick people you trust completely, who understand your values, and who can handle the responsibility.
  • Register early: It takes 8-10 weeks to register, and the LPA can't be used until it's registered—plan ahead.

Setting up a lasting power of attorney isn't about expecting the worst—it's about protecting what matters most. Whether you're 35 or 75, healthy or managing a condition, an LPA ensures your voice is heard and your wishes are respected, even when you can't speak for yourself. The peace of mind it brings—for you and your family—is worth far more than the £92 registration fee.

Need Help with Your Will?

Understanding lasting powers of attorney is an important part of comprehensive estate planning. While an LPA protects you during your lifetime, your will ensures your wishes are carried out after you're gone—and both documents work together to protect what matters most.

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.

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