What is Lasting Power of Attorney? Why Do I Need it?
What Is a Lasting Power of Attorney and Why Is It Important in England?
Planning for the future is something many people delay, yet it is one of the most important steps you can take to protect your finances, health, and personal wishes. One essential legal tool for this purpose is a Lasting Power of Attorney (LPA). In England, an LPA ensures that if you lose the ability to make decisions for yourself, someone you trust can step in and act on your behalf.
This guide explains in detail what a Lasting Power of Attorney is, how it works, the different types available, and why having one in place is so important.
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 (known as “attorneys”) to make decisions on your behalf. These decisions can relate to your finances, property, health, and personal welfare.
An LPA is specifically designed to be used if you lose mental capacity, meaning you are no longer able to make informed decisions for yourself. However, depending on the type of LPA, it may also be used while you still have capacity, with your permission.
LPAs are governed by the Mental Capacity Act 2005 and must be registered with the Office of the Public Guardian (OPG) before they can be used.
The Two Types of Lasting Power of Attorney
In England, there are two distinct types of LPA, and many people choose to set up both for full protection.
1. Property and Financial Affairs LPA
This type of LPA allows your attorney(s) to manage your financial matters. It can be used as soon as it is registered, provided you give consent.
Responsibilities may include:
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Managing bank and building society accounts
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Paying bills and household expenses
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Collecting pensions or benefits
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Buying or selling property
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Handling investments
This LPA is crucial for ensuring your financial life continues to run smoothly if you are unable to manage it yourself.
2. Health and Welfare LPA
This LPA covers decisions about your personal wellbeing and medical care. Unlike the financial LPA, it can only be used if you lose mental capacity.
It allows your attorney(s) to make decisions about:
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Medical treatment and healthcare
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Moving into a care home
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Daily routines such as eating, dressing, and hygiene
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Life-sustaining treatment (if explicitly authorised)
This type of LPA ensures that your personal values and preferences are respected, even when you cannot communicate them.
What Is Mental Capacity?
Mental capacity refers to your ability to make your own decisions. Under English law, you are assumed to have capacity unless it is proven otherwise.
You may lose capacity due to:
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Dementia or Alzheimer’s disease
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Stroke or brain injury
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Serious illness
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Mental health conditions
Capacity can be temporary or permanent, which is why planning ahead with an LPA is essential.
Why Is a Lasting Power of Attorney Important?
1. You Stay in Control of Your Future
One of the biggest advantages of an LPA is that it allows you to choose who will make decisions for you.
Without an LPA:
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Decisions may be made by strangers or court-appointed deputies
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Your personal wishes may not be fully understood
With an LPA:
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You choose trusted individuals
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You can include instructions and preferences
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You decide how decisions should be made
This ensures your autonomy is respected, even if you lose capacity.
2. Avoiding the Court of Protection
If you lose mental capacity without an LPA, your loved ones must apply to the Court of Protection to gain authority to act on your behalf.
This process can be:
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Expensive
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Time-consuming (often taking months)
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Emotionally stressful
In contrast, an LPA allows your chosen attorneys to act immediately once it is registered, avoiding delays and legal complications.
3. Ensuring Financial Stability
Without a Property and Financial Affairs LPA, your finances can quickly become difficult to manage.
Potential problems include:
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Frozen bank accounts
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Unpaid bills
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Missed mortgage or rent payments
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Difficulty accessing funds for care
An LPA ensures continuity, allowing your attorney to step in and manage your financial affairs without disruption.
4. Protecting Your Health and Welfare Decisions
A Health and Welfare LPA is particularly important because it covers deeply personal decisions.
Without one:
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Doctors and professionals make decisions based on “best interests”
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Family input may be considered, but they have no legal authority
With one:
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Your chosen person speaks on your behalf
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Your preferences guide medical and care decisions
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You can include instructions about life-sustaining treatment
This provides reassurance that your values will be respected.
5. Reducing Stress and Conflict for Families
When there is no LPA, families can face uncertainty and disagreements about what should happen.
This can lead to:
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Arguments between relatives
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Delays in decision-making
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Legal disputes
An LPA removes ambiguity by clearly stating:
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Who makes decisions
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How those decisions should be made
This helps families focus on supporting each other rather than dealing with legal uncertainty.
6. Flexibility and Customisation
An LPA is not a one-size-fits-all document. It can be tailored to your needs.
You can:
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Appoint more than one attorney
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Specify whether they act jointly or independently
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Include instructions or preferences
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Name replacement attorneys
This flexibility allows you to design a plan that fits your personal circumstances.
7. Built-In Safeguards
LPAs include several safeguards to protect against misuse:
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A certificate provider must confirm you understand the document and are not under pressure
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Attorneys are legally required to act in your best interests
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The Office of the Public Guardian can investigate concerns
These measures ensure that your interests remain protected.
8. Planning for Unexpected Events
Many people think LPAs are only necessary for older individuals, but that is a misconception.
Loss of capacity can happen at any age due to:
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Accidents
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Sudden illness
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Medical emergencies
Having an LPA in place means you are prepared for the unexpected, not just old age.
Common Misconceptions About LPAs
“My family can automatically make decisions for me”
This is incorrect. Without an LPA, even close family members have no automatic legal authority.
“I don’t need one yet”
The key requirement for creating an LPA is having mental capacity. Once capacity is lost, it is too late to set one up.
“It’s too complicated”
While there is a formal process, it is relatively straightforward compared to applying to the Court of Protection later.
“It’s only about finances”
Health and welfare decisions are equally important and often more personal.
When Should You Set Up a Lasting Power of Attorney?
The best time to set up an LPA is now, while you are still capable of making decisions.
Common times people arrange LPAs include:
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When writing a will
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After marriage or starting a family
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Following a medical diagnosis
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During retirement planning
However, there is no minimum age requirement—any adult can benefit from having one.
How to Set Up an LPA in England
The process involves:
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Choosing your attorney(s)
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Completing the official LPA forms
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Having the document signed and witnessed
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Registering it with the Office of the Public Guardian
There is a registration fee, although reductions or exemptions may apply depending on your circumstances.
Conclusion
A Lasting Power of Attorney is a vital part of financial and personal planning in England. It ensures that if you are ever unable to make decisions for yourself, someone you trust can step in and act in your best interests.
Without an LPA, your loved ones may face significant legal, financial, and emotional challenges. With one in place, you gain peace of mind knowing that your affairs will be handled smoothly and according to your wishes.
Ultimately, an LPA is about more than legal protection—it is about maintaining control, dignity, and security for the future.
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A Kat's Wills and Estate Planning our dedicated and professional team are on hand to assist you every step of the way with arranging your LPA. We can offer home visits, telephone/video calls or fully online services.
Our prices for online services are £90.00 per person for one set of paperwork or £150.00 per person for both sets of paperwork plus the registration fee payable to the OPG. Our fully advised services are £320.00 per person for both sets of paperwork plus the OPG registration fee.
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The OPG registration fee is £92.00 for each LPA you register, if you register both sets of paperwork it would be £184.00 per person. Unless you qualify for exemption or reduction of the fees. I will discuss this further with you to see if an exemption or reduction applies.