Lasting power of attorney explained: types, costs and how to set one up

If you don't have a lasting power of attorney in place, your family may not automatically be able to step in and manage your affairs if you ever lose the ability to make decisions for yourself.

Banks can freeze accounts, bills can go unpaid, and decisions about care or medical treatment can stall while relatives wait for the legal authority to act. Without one, the only way back in is for someone to apply to the Court of Protection for deputyship, a process that's slower, more expensive, and doesn't guarantee the outcome your family would have chosen.

Putting a lasting power of attorney in place while you still have mental capacity means you decide who acts for you, and on what terms, rather than leaving that choice to a court further down the line.

England and Wales recognise two separate types of lasting power of attorney, each covering a different part of your life. Most people set up both at the same time, though you can create just one if that better suits your circumstances.

A property and financial affairs LPA lets your attorney manage money matters on your behalf, from paying household bills to selling a property if that becomes necessary. You can choose whether it can be used as soon as it's registered or only once you lose mental capacity.

A health and welfare LPA only ever takes effect once you're unable to make the decision yourself. It allows your attorney to make choices about medical treatment, day-to-day care, and where you live, including whether you move into residential care.

Setting up a lasting power of attorney involves a handful of clear steps, all of which you can complete yourself using the official GOV.UK lasting power of attorney service, or with support from a solicitor if you'd prefer it.

You don't need a solicitor to set up a lasting power of attorney. Many people complete the process themselves through the official GOV.UK service, particularly when their financial affairs are straightforward and family relationships are settled.

The main risk of doing it yourself is a paperwork error. A missing signature, an incorrectly worded restriction, or a form completed in the wrong order can see your application rejected by the Office of the Public Guardian and sent back, adding weeks to the process. If your situation is complicated, or you're at all unsure, it's worth comparing a will writing service vs a solicitor, since similar trade-offs apply to an LPA.

There's no single 'best' person to be your power of attorney. The right choice depends on your circumstances, but the strongest attorneys tend to share a few qualities.

Choosing between siblings, or other close family members, is one of the most common sources of tension. Appointing more than one attorney to act jointly can help, since no single person holds all the responsibility, though it also means they need to agree on every decision unless you specify otherwise. If family disagreement feels likely, or your affairs are complex, appointing a professional attorney, such as a solicitor, gives you an independent decision-maker with no personal stake in the outcome.

Setting up a lasting power of attorney costs less than most people expect if you complete it yourself. There's a registration fee payable to the Office of the Public Guardian for each LPA you register, though reductions and exemptions exist for people on a low income or certain benefits. If you use a solicitor or will-writing service, their fees come on top of the registration fee.

Fees and eligibility thresholds change periodically, so rather than quote a figure that may already be out of date, see our dedicated guide covering how much a lasting power of attorney costs for the current breakdown.

An enduring power of attorney (EPA) was the predecessor to the lasting power of attorney. Since the Mental Capacity Act 2005 came into force in October 2007, it's no longer possible to create a new EPA. Only the property and financial affairs side was replaced directly; health and welfare decisions weren't covered by the old system at all.

If you or a family member already holds a valid EPA made before that cut-off, it remains legally valid and doesn't need to be replaced. It's still worth registering it with the Office of the Public Guardian if it hasn't been registered already, since an unregistered EPA can't be used once the donor loses mental capacity.

Without a lasting power of attorney, nobody, not even a spouse or adult child, automatically has the legal right to manage your finances or make care decisions for you if you lose mental capacity. Family members must apply to the Court of Protection to be appointed as a deputy instead.

Deputyship is slower and more expensive than registering an LPA, often taking several months, and it comes with ongoing supervision and reporting requirements that an LPA doesn't. The court also decides who's appointed, which may not be the person you'd have chosen yourself. It's broadly the same problem as what happens if you die without a will: without your own instructions in place, the decision passes to a court instead of the people who know you best.

A lasting power of attorney works best as part of a joined-up plan, rather than a document you set up once and forget about. Most people put one in place around the same time as writing a will, since both documents deal with who you trust to act on your behalf, just at different points in time.

An LPA can also work alongside setting up a trust, particularly if you want more control over how assets are managed for a vulnerable beneficiary, and it often comes up during inheritance tax planning, since many of the same conversations about your family's future happen at the same time. If you're considering equity release and later-life planning, it's worth having your LPA in place first, since a lender can't always proceed if you later lose the capacity to manage a lifetime mortgage yourself. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it.

Once someone has died, an LPA no longer applies. Their will and the probate process take over instead, which is a separate legal process for dealing with their estate.

This guide is general information, not legal advice, and everyone's circumstances are different. If you're unsure about any part of the process, especially where mental capacity, family disagreement, or a complex estate is involved, it's worth speaking to a solicitor who specialises in this area.

For impartial guidance on later-life planning more broadly, MoneyHelper is available on 0800 138 7777. You can also read more from Citizens Advice on your rights and options if you're supporting a family member through this process.