It’s never easy to think about a time when you might need help managing your affairs, but putting the right legal arrangements in place can give you and your loved ones peace of mind. A Power of Attorney (POA) and Lasting Power of Attorney (LPA) allow someone you trust to make decisions on your behalf if needed. This guide explains the key differences, when each might be useful, and how to set them up.
What is a Power of Attorney (POA)?
A Power of Attorney (POA) is a legal document that lets you give someone you trust the power to make decisions on your behalf. It can be used for specific tasks - like managing your finances while you're abroad or handling paperwork if you're unwell.
A POA is only valid while you have mental capacity. If you lose capacity, it automatically becomes invalid unless it’s a Lasting Power of Attorney (LPA) or an Enduring Power of Attorney (EPA), which remain in place even if you can no longer make decisions for yourself.
Key features
Can be used for short-term or one-off transactions.
The donor (you) must have mental capacity when setting it up.
Becomes invalid if the donor loses mental capacity, unless it is an LPA or EPA.
Often used for financial matters, like managing a bank account or selling property while the donor is unavailable.
What is a Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney (LPA) is a specific type of POA that remains valid even if the donor loses mental capacity due to illness, injury, or old age. LPAs were introduced in the UK under the Mental Capacity Act 2005. They ensure trusted individuals can continue making decisions when someone is unable to do so themselves.
There are two types of LPA, each covering different aspects of your life:
1. Health and welfare LPA
This allows your attorney(s) to make decisions about:
Medical care and treatment options
Living arrangements (e.g. moving into a care home)
End-of-life care, including life-sustaining treatment
This type of LPA only takes effect if you lose mental capacity and cannot make decisions for yourself.
2. Property and financial affairs LPA
This allows your attorney(s) to handle financial matters such as:
Managing bank accounts and paying bills
Collecting pensions or benefits
Buying or selling property
Handling investments and taxes
Unlike the Health and Welfare LPA, this type of LPA can be used while you still have capacity, if you choose to give your attorney immediate authority.
POA vs LPA: What are the differences?
Feature | Power of Attorney (POA) | Lasting Power of Attorney (LPA) |
|---|---|---|
Purpose | Typically used for temporary or specific financial matters | Allows ongoing decision-making, even if the donor loses mental capacity |
Validity if donor loses mental capacity | Becomes invalid | Remains valid if registered with the OPG |
Registration requirement | No registration required | Must be registered with the OPG |
Types available | General POA, Limited POA | Health and Welfare LPA, Property and Financial Affairs LPA |
Common uses | Managing financial affairs while the donor is abroad or unwell | Long-term care planning and financial management |
Applying for a Lasting Power of Attorney (LPA)
An LPA is essential if you want someone to handle your health, finances, or property in case you lose mental capacity in the future. Here’s how to apply:
1. Decide which type of LPA you need
The first step is to decide which type of LPA you need. A Health and Welfare LPA allows your attorney to make decisions about medical care, daily living, and end-of-life treatment. A Property and Financial Affairs LPA gives them control over bank accounts, bills, pensions, property, and investments. Many people choose to set up both LPAs for full protection.
2. Choose an attorney
Once you have decided which LPA(s) to apply for, you will need to choose an attorney - someone you trust to act in your best interests. It’s also a good idea to name a replacement attorney, in case your first choice is unable to act when needed.
3. Complete the LPA forms
After choosing an attorney, you must complete the LPA forms, which are available online from the UK government website or through a solicitor. These forms must be filled out carefully to avoid mistakes that could delay the registration process.
4. Get the forms signed
A crucial part of the process is having the LPA signed by a certificate provider. This is either a professional, such as a solicitor or doctor, or someone who knows you well but is not an attorney. Their role is to confirm that you fully understand what you’re agreeing to and that you are not under any pressure to sign.
5. Register the LPA with the Office of the Public Guardian (OPG)
Once the forms are completed and signed, you'll need to register the LPA with the Office of the Public Guardian (OPG). Registration is essential because an LPA cannot be used until it is officially recorded.
💡 Editor’s insight: “Registering a Lasting Power of Attorney (LPA) can take time, so it’s important to set it up while you’re still able to make decisions for yourself. Doing this early ensures that if your circumstances change, a trusted person will already have the legal authority to step in and help when needed. Planning ahead can provide peace of mind for both you and your loved ones."
What is an Enduring Power of Attorney (EPA)?
Before LPAs were introduced, an Enduring Power of Attorney (EPA) was used in the UK for financial decisions. While new EPAs can no longer be created, existing EPAs remain valid if they were made before 1 October 2007. You can learn more in our full guide to the differences between lasting and enduring power of attorney.
Key points about EPAs:
EPAs only cover financial matters, not health or welfare decisions.
If the donor loses mental capacity, the attorney must register the EPA with the OPG before continuing to act.
Unlike LPAs, an EPA does not need to be registered until the donor becomes mentally incapacitated.
FAQs
Can I have both a POA and an LPA?
Yes, you can have both, but most people choose an LPA because it remains valid even if they lose mental capacity. A general POA is usually used for short-term situations, like managing finances while you're abroad. If you want long-term protection, an LPA is the better option.
Do I need a solicitor to set up a POA or LPA?
No, you don’t legally need a solicitor, but getting legal advice can be helpful - especially for complex financial matters. You can complete the forms yourself, but a solicitor can help ensure everything is legally correct.
Can an attorney under a POA or LPA make a will for me?
No, an attorney cannot create or change a will on your behalf. However, if you lose mental capacity and a will needs to be updated, an attorney can apply to the Court of Protection to request a statutory will, but this is only approved in exceptional cases.
Final thoughts
The main difference between a Power of Attorney (POA) and a Lasting Power of Attorney (LPA) is that a POA is temporary and ends if the donor loses mental capacity, while an LPA remains valid even if they do. If you are planning for the future, setting up an LPA ensures that someone you trust can manage your affairs if you become unable to do so. Seeking legal advice can help you choose the right option based on your needs.
References
Disclaimer: This article only provides general information and does not constitute professional advice. For any specific questions, consult a qualified legal professional.