If you lost the ability to manage your finances — through dementia, a stroke, or an accident — who would pay your bills? Who would deal with your bank, your mortgage, or HMRC?
Without a Lasting Power of Attorney (LPA), nobody can step in automatically. Not your spouse, not your children. Your bank accounts freeze, your direct debits fail, and your family has to apply to the Court of Protection for a costly and time-consuming deputyship order.
An LPA for finances solves this. It lets you choose someone you trust to manage your money if you can’t — and it costs just £82 to set up.
What Is a Financial LPA?
A Property and Financial Affairs LPA is a legal document that gives a named person (your “attorney”) the authority to manage your money and property. You set it up while you still have mental capacity, and it can be used whenever you need it — either permanently or temporarily.
This is different from the Health and Welfare LPA, which covers medical and personal decisions and can only be used after you’ve lost capacity.
What a Financial LPA Covers
Your attorney can manage:
- Bank and building society accounts
- Savings and investments
- Paying bills and managing household finances
- Dealing with HMRC and tax affairs
- Buying, selling, or renting out property
- Managing your pension
- Paying care home fees
- Maintaining your home
- Claiming benefits on your behalf
When It Can Be Used
A Property and Financial Affairs LPA can be used as soon as it’s registered with the Office of the Public Guardian (OPG) — even while you still have mental capacity, provided you consent.
This is useful if, for example, you’re in hospital and need someone to deal with an urgent financial matter on your behalf. You remain in control as long as you have capacity — your attorney can only act with your permission.
Once you lose capacity, your attorney can act without your consent, but they must always act in your best interests.
Types of LPA
There are two types of LPA in England and Wales:
| Feature | Property and Financial Affairs LPA | Health and Welfare LPA |
|---|---|---|
| Covers | Money, property, investments, tax | Medical treatment, care, daily routine |
| When it can be used | Immediately (with consent) or after capacity is lost | Only after capacity is lost |
| Registration fee | £82 | £82 |
| Can have same attorney? | Yes | Yes |
You can have the same person as attorney for both LPAs, or choose different people for each.
How to Set Up a Financial LPA
Step 1: Choose Your Attorney
This is the most important decision. Your attorney will have access to your money and the power to make financial decisions on your behalf.
What to look for:
- Trustworthy — they’ll have access to everything you own
- Organised — they need to manage finances, keep records, and make decisions
- Financially capable — they don’t need to be an expert, but they should be competent
- Available — they should have time to manage your affairs
- Willing — don’t assume someone wants the role. Ask them first
Can you have more than one attorney?
Yes. You can appoint:
- A single attorney
- Two or more attorneys who must act together (jointly)
- Two or more attorneys who can act together or independently (jointly and severally)
- A mix — for example, two attorneys must act jointly for major decisions but can act independently for day-to-day matters
Jointly means both attorneys must agree on every decision. Jointly and severally means each can act independently. Joint and several gives more flexibility but less control.
Professional attorneys:
If you don’t have a suitable person, you can appoint a professional attorney — a solicitor or a professional trustee. They’ll charge fees for their services, but they bring expertise and accountability.
Step 2: Complete the LPA Form
You can fill in the form:
- Online at GOV.UK — gov.uk/lpa (recommended — faster processing)
- On paper — download from GOV.UK or order by post
The form asks for:
- Your details (the “donor”)
- Your attorney’s details
- What powers you want to give them
- Any restrictions or conditions
- When the LPA can be used
Step 3: Get a Certificate Provider
Someone must confirm that:
- You understand what the LPA does
- You’re not being pressured or forced into it
- There’s no fraud involved
The certificate provider can be:
- A solicitor
- A GP or doctor
- Someone who’s known you personally for at least two years
They must sign the LPA and this is a legal requirement — the LPA isn’t valid without it.
Step 4: Sign the LPA
The following people must sign:
- You (the donor)
- Your attorney(s)
- The certificate provider
- Witnesses (you and each attorney need a witness)
Step 5: Register with the OPG
Send the completed LPA to the Office of the Public Guardian:
- Online: via the GOV.UK portal
- By post: OPG, PO Box 16182, Birmingham, B2 2WH
Registration takes 8 to 10 weeks. The OPG will check the form is valid and then register it.
Costs
| Item | Cost |
|---|---|
| LPA registration fee | £82 per LPA |
| Both LPAs (financial + health) | £164 |
| Fee remission (low income/savings under £21,000) | Reduced or free |
| Solicitor fees (optional) | £300–£500 |
| Total with solicitor | £382–£582 for both |
Free and Reduced Fee Remission
You may get a reduced fee or pay nothing if:
- You receive certain means-tested benefits
- Your income is below a certain threshold
- Your savings are under £21,000
Check the current thresholds on the OPG website before applying.
What Your Attorney Can Do
With a registered Property and Financial Affairs LPA, your attorney can:
- Manage bank accounts — open, close, and operate accounts
- Pay bills — household bills, utility bills, council tax, subscriptions
- Deal with HMRC — file tax returns, claim refunds, correspond with HMRC
- Manage investments — buy and sell shares, manage ISAs, handle pensions
- Buy and sell property — with Court of Protection approval for your main home
- Claim benefits — apply for and manage state benefits on your behalf
- Pay care costs — fund care home fees or home care
- Maintain your property — arrange repairs, improvements, or adaptations
Restrictions You Can Add
You can limit your attorney’s powers. For example:
- No authority to sell my main home without Court of Protection approval
- Attorney must consult my financial adviser before making investments over £10,000
- Attorney cannot make gifts on my behalf
- Attorney must keep a detailed record of all transactions
What Your Attorney Cannot Do
- Make gifts from your money (unless the LPA specifically allows it and it’s in your best interests)
- Change your will
- Make decisions about your health or welfare (that requires a separate Health and Welfare LPA)
- Benefit themselves financially (except to repay legitimate expenses)
- Act after your death — the LPA ends when you die
Safeguards and Oversight
The LPA system includes several safeguards to protect you:
Certificate Provider
Before the LPA is registered, an independent certificate provider must confirm you understand the document and aren’t being coerced. This is your first line of protection.
Notification Requirements
You must notify anyone named in the LPA — for example, replacement attorneys or people you’ve excluded from decision-making. They can raise concerns with the OPG if they believe the LPA is being misused.
Court of Protection
If there’s a dispute about the LPA, or if your attorney isn’t acting in your best interests, the Court of Protection can:
- Investigate the attorney’s conduct
- Remove the attorney
- Suspend the LPA
- Appoint a new attorney or deputy
Ongoing Supervision
- Attorneys must keep records and accounts
- The OPG can investigate complaints
- The Court of Protection can intervene if necessary
- Banks and financial institutions can report concerns
Common Mistakes to Avoid
1. Not Setting Up Early Enough
The most common mistake. You must have mental capacity to create an LPA. Once you’ve lost it — through dementia, a severe stroke, or another condition — it’s too late. Your family will have to go through the expensive and stressful deputyship process.
Do it now. It takes 8–10 weeks to register, and the cost is just £82.
2. Choosing the Wrong Attorney
Don’t just pick the closest person or your eldest child by default. Choose someone who is:
- Trustworthy and honest
- Financially competent
- Emotionally capable of making difficult decisions
- Available and willing
If in doubt, consider a professional attorney — especially for complex financial affairs.
3. Not Registering the LPA
An unregistered LPA is useless. You can’t use it until it’s registered with the OPG. Many people create an LPA and then forget to register it — or leave it in a drawer without telling anyone.
4. Not Telling Anyone
Your attorney needs to know the LPA exists and where to find it. Banks, financial advisers, and other institutions also need to know. Tell your attorney, store the LPA securely, and keep a record of where it is.
5. Assuming Your Spouse Has Automatic Authority
They don’t. Without an LPA, your spouse cannot access your bank accounts, deal with your investments, or manage your property on your behalf. They would need to apply to the Court of Protection.
6. Not Covering Both Types
A financial LPA covers your money. A Health and Welfare LPA covers your medical treatment and personal care. You need both — they’re separate documents with separate registration.
7. Not Reviewing It
Review your LPA every 3–5 years or after major life events:
- Marriage, divorce, or separation
- Birth of children
- Death of your named attorney
- Change in your financial circumstances
- Moving to a different part of the UK
LPA vs Deputyship: Why It Matters
| Feature | LPA | Deputyship |
|---|---|---|
| When you set it up | While you have capacity | After you’ve lost capacity |
| Who chooses the person | You | The court |
| Cost | £82 registration fee | £371 application + £320/year supervision |
| Time | 8–10 weeks to register | Months for court process |
| Control | You set the terms | Court sets the terms |
| Privacy | Private | Public court proceedings |
LPA in Scotland and Northern Ireland
The system differs slightly:
- Scotland: The equivalent is called a “Continuing Power of Attorney” (for finances) and a “Welfare Power of Attorney” (for health). Register with the Office of the Public Guardian Scotland.
- Northern Ireland: Powers of Attorney are governed by different legislation. Register with the High Court.
The core principles are similar, but the forms and processes differ. Check the relevant government websites for guidance.
Key Takeaways
- A Property and Financial Affairs LPA lets you choose who manages your money if you lose capacity
- It costs £82 and takes 8–10 weeks to register — set it up early
- Choose your attorney carefully — they’ll have access to your finances
- You can add restrictions to limit what your attorney can do
- An LPA is far cheaper and less stressful than the deputyship process
- Review it regularly and tell your attorney it exists
- You need a separate Health and Welfare LPA for medical decisions
This article is for general information only and does not constitute legal or financial advice. LPA rules can change, and individual circumstances vary. For personalised guidance, consult a solicitor specialising in estate planning or contact the Office of the Public Guardian.