financial-planning

Lasting Power of Attorney UK: Costs, Process, and Why You Need One

SYM

A Lasting Power of Attorney (LPA) is a legal document that lets you appoint a trusted person to manage your affairs if you ever lose mental capacity due to illness, injury, or dementia. Without one, your family cannot access your bank accounts, sell your property, or make medical decisions on your behalf — even if they're your closest relatives. The only alternative is a costly Court of Protection deputyship, which can take many months and cost thousands of pounds. Setting up an LPA while you're well costs as little as £82 per document and takes a few weeks. It's one of the most important pieces of financial planning most people put off until it's too late.

The Two Types of Lasting Power of Attorney

There are two types of LPA in England and Wales, and most people need both. A Property and Financial Affairs LPA allows your attorney to manage bank accounts, pay bills, sell property, manage investments, and deal with HMRC on your behalf. It can be used from the moment it's registered, even while you still have capacity (with your permission). A Health and Welfare LPA allows your attorney to make decisions about medical treatment, care home placement, and daily welfare. It can only be used once you lack mental capacity to make those decisions yourself. Scotland and Northern Ireland have equivalent documents (Powers of Attorney) with slightly different rules.
  • •Property & Financial Affairs LPA: bank accounts, property, bills, investments
  • •Health & Welfare LPA: medical care, care homes, daily welfare
  • •Both types can be registered at the same time
  • •Financial LPA can be used while you still have capacity
  • •Health LPA: only activates on loss of mental capacity

How Much Does an LPA Cost?

The Office of the Public Guardian (OPG) charges £82 per LPA to register it in England and Wales (as of 2025). If you set up both types of LPA, that's £164 in registration fees. You may qualify for a fee remission (reduction or waiver) if you receive means-tested benefits or have an income under £12,000/year. If you use a solicitor to draft the LPAs, you'll pay an additional £200–£600 per LPA in professional fees — but this is worthwhile for complex estates or family situations. The free online route through GOV.UK is straightforward for most people with straightforward circumstances. The total cost of setting up two LPAs yourself: approximately £164–£200. Without an LPA, a Court of Protection deputyship costs £371 to apply plus ongoing annual fees — and the process can take 6–12 months.
  • •OPG registration fee: £82 per LPA
  • •Two LPAs (both types): £164 total registration fees
  • •Fee remission available: income under £12,000/year or on means-tested benefits
  • •Solicitor fees: £200–£600 per LPA (optional but recommended for complex situations)
  • •Court of Protection deputyship (without LPA): £371+ and 6–12 month wait

How to Set Up an LPA

The process in England and Wales begins at the gov.uk LPA service. You'll complete the LPA forms online or on paper, choosing your attorney(s), replacement attorneys, certificate provider (an independent person who confirms you understand and aren't being coerced), and any restrictions or preferences. The completed forms must be signed in the correct order: donor (you), certificate provider, attorneys. After signing, you post the forms and pay the registration fee to the OPG. The OPG typically takes 20 weeks to register an LPA once it receives the application. You cannot use the LPA until it's been officially registered. For urgency, the OPG offers an expedited service. Once registered, you receive the original document back — store it safely and tell your attorney where it is.
  • •Start online: gov.uk/power-of-attorney/make-lasting-power
  • •Choose attorneys and replacement attorneys carefully
  • •Certificate provider must be independent — not a family member
  • •Sign in correct order: donor, certificate provider, attorneys
  • •Registration takes ~20 weeks — plan well ahead

Who Should You Appoint as Attorney?

Your attorney must be over 18, have mental capacity, and not be bankrupt (for financial LPA). Choose someone you trust completely — this is a significant responsibility. You can appoint multiple attorneys who can act 'jointly' (all must agree) or 'jointly and severally' (any can act alone). Jointly and severally is usually more practical, especially if one attorney lives far away. For the health and welfare LPA, consider who knows your values and wishes best, who is calm under pressure, and who will genuinely represent what you would want rather than what they find easiest. You can appoint a professional (such as a solicitor) as attorney if family relationships are complex.
  • •Must be: over 18, mentally capable, not bankrupt (financial LPA)
  • •Multiple attorneys: 'jointly' (all agree) or 'jointly and severally' (any can act)
  • •Practically: 'jointly and severally' works better in most cases
  • •Consider: trustworthiness, geographical proximity, ability to handle paperwork
  • •Professional attorneys available if family situation is complex

Frequently Asked Questions

Can I change my LPA after it's registered?+

You can revoke (cancel) an LPA while you still have mental capacity. You cannot modify a registered LPA — you'd need to make a new one.

What if I lose capacity before making an LPA?+

If you lack mental capacity, you cannot make an LPA. Your family would need to apply to the Court of Protection for a deputyship — significantly more expensive and slower.

Does an LPA work in Scotland?+

England/Wales LPAs do not operate in Scotland. Scotland has its own Power of Attorney under the Adults with Incapacity (Scotland) Act 2000.

Can my attorney use my money for themselves?+

Attorneys have a legal duty to act in your best interests. Misusing funds is financial abuse and can result in prosecution. The OPG supervises deputies and investigates concerns.

#lasting power of attorney#lpa uk#estate planning#mental incapacity

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