Most of us have a will on our to-do list. Far fewer think about what would happen if we were still alive but could no longer make decisions for ourselves, after a stroke, an accident or the onset of dementia.
Without a Lasting Power of Attorney, your family may not be able to pay your bills, manage your bank account or have a say in your care, even if they are your husband, wife or children. Setting one up is straightforward, costs £92, and you can do it yourself.
Quick answer: A Lasting Power of Attorney (LPA) lets you choose people you trust to make decisions for you if you cannot. There are two types: property and financial affairs, and health and welfare. In England and Wales, each costs £92 to register with the Office of the Public Guardian, and registration takes about 8 to 10 weeks. You must make one while you still have mental capacity.
In this guide
- What a Lasting Power of Attorney is
- The two types of LPA
- Why it matters, even if you are married
- Choosing your attorneys
- How to make an LPA, step by step
- How much it costs
- What happens if you do not have one
- Scotland and Northern Ireland
What is a Lasting Power of Attorney?
An LPA is a legal document that lets you (the “donor”) appoint one or more people (your “attorneys”) to make decisions on your behalf. It only becomes valid once it has been registered with the Office of the Public Guardian (OPG).
It is not the same as a will. A will deals with your affairs after you die. An LPA covers the time while you are alive but may not be able to manage things yourself. It ends automatically when you die, and your executors take over.
The two types of LPA
Property and financial affairs
This lets your attorneys manage your money and property, for example:
- paying bills and managing your bank accounts
- collecting your pension and benefits
- dealing with your tax
- selling your home if needed
With your permission, it can be used as soon as it is registered, even while you still have capacity. That can be helpful if you simply want a hand with paperwork, or if you are often away.
Health and welfare
This lets your attorneys make decisions about things like:
- your daily routine, such as washing, dressing and eating
- your medical care
- moving into a care home
- life-sustaining treatment, if you choose to give them this power
It can only be used once you are unable to make these decisions yourself.
You can make one or both. Many people make both at the same time.
Why it matters, even if you are married
A common myth is that your husband, wife or next of kin can automatically step in. They cannot. Without an LPA:
- banks may freeze or restrict access to an account in your sole name
- your family may not be able to sell your home to pay for care
- decisions about your treatment are made by doctors in your best interests, though they will usually consult your family
If you have joint accounts, your partner can usually still use them, but anything in your sole name, including most pensions and investments, can become very hard to reach.
Choosing your attorneys
Your attorney can be anyone aged 18 or over who has mental capacity: a partner, adult child, other relative, friend or a professional such as a solicitor. They do not need to live in the UK. A person who is bankrupt, or subject to a Debt Relief Order, cannot be a property and financial affairs attorney.
Things to think about:
- Trust. They will have a lot of power over your money or care.
- Ability. Are they organised and good with money? Are they likely to be around and well enough to help?
- How they act together. If you choose more than one, you can let them act “jointly and severally” (together or separately), “jointly” (they must all agree on everything), or a mix of the two. Jointly and severally is usually more practical, because if one attorney can no longer act, the others can carry on.
- Replacement attorneys. You can name back-ups in case an attorney dies or can no longer act.
How to make an LPA, step by step
- Choose your attorneys and talk to them first, so they are happy to take it on.
- Fill in the forms. The simplest way is the online service on GOV.UK, which lets you save your progress and checks for mistakes. You can also download paper forms. A family member or friend can help you.
- Choose a certificate provider. This is someone who has known you well for at least two years, or a professional such as a doctor or solicitor. They confirm that you understand the LPA and are not being pressured.
- Decide who to notify. You can name people to be told when the LPA is registered. They have 3 weeks to raise any concerns.
- Sign in the right order. You, your certificate provider, your attorneys and witnesses must all sign the same original paper document. Copies and digital signatures are not accepted. Your attorneys cannot witness your signature.
- Register it with the OPG and pay the fee. Either you or one of your attorneys can apply.
Registration usually takes 8 to 10 weeks if there are no mistakes, and is often quicker if you make and pay online. Errors are the most common cause of delays, so check every page before you send it.
Once registered, your attorneys can use the online “Use a lasting power of attorney” service on GOV.UK to share proof of the LPA with banks and other organisations.
How much does an LPA cost?
- £92 per LPA to register in England and Wales, or £184 for both types
- Half price if you earn less than £12,000 a year
- Free if you get certain means-tested benefits, such as Income Support
- If the OPG finds a mistake, you may be able to correct it and reapply within 3 months for £46
You do not need a solicitor. Some people prefer to use one, especially if their finances are complicated or if family relationships are difficult, but solicitor fees are on top of the registration fee.
Be careful with companies that charge large fees to “help” with an LPA that you could fill in yourself on GOV.UK. Our guide to avoiding scams in retirement has more tips.
What happens if you do not have one?
If you lose capacity without an LPA, your family will usually need to apply to the Court of Protection to become your “deputy”. This is slower, more expensive and more stressful than making an LPA. For example:
- an application fee of £432 for each type of deputyship, plus £266 if a hearing is needed
- an assessment fee of £100 for new deputies
- an annual supervision fee of £320 in most cases
- often a security bond, which is a type of insurance
The court also chooses who acts for you, and it may not be the person you would have picked.
Scotland and Northern Ireland
An LPA made in England and Wales is only legally binding there. The rules are different elsewhere in the UK:
- Scotland: you make a continuing power of attorney (for money and property) and/or a welfare power of attorney. It must be certified by a solicitor or a doctor and registered with the Office of the Public Guardian (Scotland). See mygov.scot.
- Northern Ireland: there is a separate system. See nidirect for details.
Frequently asked questions
Is it too late if someone already has dementia?
Not necessarily. A diagnosis does not automatically mean someone lacks capacity. If they can still understand what an LPA is and what it means, they may be able to make one. The certificate provider will need to be satisfied of this. Act sooner rather than later.
Can I cancel an LPA?
Yes. While you still have capacity, you can end it by sending the OPG the original LPA and a signed, witnessed deed of revocation.
What if I already have an Enduring Power of Attorney?
Enduring Powers of Attorney made before October 2007 can still be valid. They only cover property and financial affairs, so you may want to make a health and welfare LPA as well.
Can my attorney do anything they like?
No. Attorneys must act in your best interests, follow any instructions you include, and keep your money separate from theirs. The OPG can investigate if there are concerns.
Final thoughts
An LPA is one of the most useful documents you can have in later life, and one of the easiest to put off. It costs less than many people expect, protects your family from a costly court process, and makes sure the people you trust are the ones making decisions.
It works best alongside other planning. See our guide to the legal steps to take before you retire, our ultimate retirement checklist, and what happens to your pension when you die. If you are thinking about care, our Attendance Allowance guide explains the help available.
