What Does a Lasting Power of Attorney Cover?
A Lasting Power of Attorney (LPA) gives someone you trust the legal authority to make decisions on your behalf, but it does not give unlimited power. What it covers depends on the type of LPA you create and any specific instructions or restrictions you include in the document.
Each type of LPA covers the following:
Property and Financial Affairs LPA
This type allows your attorney to manage your money, property, and financial matters, including:
- Accessing and managing bank and savings accounts
- Paying household bills, rent, or mortgage
- Collecting pensions, benefits, or income
- Buying or selling property or assets
- Managing investments
- Filing and paying taxes
- Dealing with debts or creditors
You can choose to allow your attorney to act as soon as the LPA is registered (while you still have capacity), or only once you lose mental capacity.
Health and Welfare LPA
This type gives your attorney authority to make decisions about your personal health and well-being, but only after you lose the mental capacity to decide for yourself. It can include:
- Decisions about where you live (e.g., at home or in care)
- Choosing or changing care providers
- Day-to-day decisions about meals, routines, and personal care
- Giving or refusing consent for medical treatment
- Making decisions about life-sustaining treatment (if explicitly authorised in the document)
How long does a Lasting Power of Attorney (LPA) last?
A common question we are asked by clients is how long a Lasting Power of Attorney is legally enforceable, and we have set out below some of the main points.
Revoked
You, the donor, can cancel the LPA at any time as long as you have the mental capacity to revoke this document. This must be done formally, in writing, and registered with the Office of the Public Guardian (OPG).
Superseded by a New LPA
If you make a new LPA and explicitly revoke the previous one, the old LPA will no longer be valid.
Automatically Invalidated
An LPA becomes automatically invalidated if any of the following occurs:
- The attorney dies or loses mental capacity (and there’s no replacement named)
- The attorney becomes bankrupt (for Property & Financial Affairs LPA)
- You (the donor) get divorced or dissolve a civil partnership from your attorney, if they were your spouse (this may end their role depending on the LPA’s wording)
- The Court of Protection cancels the LPA for misuse or concern
Ends Upon the Donor’s Death
Once you (the donor) die, the LPA automatically ends, and your affairs are managed through your Will or probate process. The attorney no longer has any authority to deal with your affairs.
Who Is Exempt from LPA Registration Fees?
In the UK, the standard fee to register an LPA is £82 per document (as of 2025). However, some individuals may qualify for:
Full exemption if receiving certain benefits (e.g., Universal Credit, Income Support).
50% fee reduction for those with a gross annual income of less than £12,000.
Charitable fee waivers in specific situations.
Always check with the Office of the Public Guardian or we can advise you accordingly.
Can I Sell My Parents’ Property Without a Lasting Power of Attorney (LPA)?
When a parent becomes incapacitated or unable to manage their affairs due to illness, injury, or age-related conditions, you might find yourself needing to step in and help manage their property, including selling their house. However, if your parent hasn’t granted you a Lasting Power of Attorney (LPA), this can be problematic.
What Happens Without an LPA?
Without an LPA in place, you do not automatically have the legal right to make decisions on behalf of your parent, including selling their property. The absence of an LPA means that you cannot act as their “attorney” for your parent’s financial matters, which means a court application is required.
Applying to the Court of Protection for a Deputyship
If your parent lacks capacity and has not appointed an attorney via an LPA, the next step is to apply to the Court of Protection to become a deputy for your parent’s financial affairs. A deputy is someone who is authorised by the court to make decisions on behalf of a person who is no longer able to manage their own affairs.
Process of Becoming a Deputy:
- You must complete an application to the Court of Protection, demonstrating that your parent is incapacitated and that you are the best person to manage their affairs.
- The court will assess your application and decide whether to appoint you as a deputy. If approved, you will be granted authority to act on your parent’s behalf for financial matters, including selling property.
- This process can take several months and involves court fees and legal procedures, which can be costly.
- Once appointed, you will need to adhere to strict guidelines and could be subject to ongoing monitoring by the court.
While this route grants you the authority to sell your parents’ property, the time and cost involved are significant compared to simply having an LPA in place.
The Importance of Having an LPA
The key takeaway here is that without a Lasting Power of Attorney, you cannot sell your parent’s property unless you have been appointed as a deputy by the Court of Protection. If your parent has not given you any form of legal authority to manage their affairs, and they are no longer mentally capable, you will likely have to go through a lengthy and costly legal process to gain permission to manage their property or make important financial decisions on their behalf.
In short, if you anticipate the need to manage your parent’s property in the future, setting up a Lasting Power of Attorney is essential. It will make things far easier, faster, and less stressful for you and your parent when the time comes. Without it, the road to making decisions, such as selling a property, can become much more complicated and emotionally taxing.
Is an LPA more important than a Will?
We are often asked whether a Lasting Power of Attorney (LPA) is more important than a Will, and this depends on the context and your specific needs, as both serve different purposes in estate planning.
In short, an LPA and a Will are complementary legal documents, each crucial for different aspects of decision-making, and we have highlighted the key differences between the two and why they’re both important.
What is a Lasting Power of Attorney (LPA)?
An LPA is a legal document that allows you to appoint one or more individuals (known as attorneys) to make decisions on your behalf if you become mentally or physically incapacitated in the future. The LPA can cover decisions related to your finances, property, and healthcare.
What is a Will?
A Will is a legal document that outlines how you want your assets (property, money, possessions) to be distributed after your death. It also allows you to appoint guardians for any dependents and make funeral arrangements. Importantly, a Will only comes into effect after you’ve passed away—it has no legal power while you’re still alive.
Why an LPA Might Be More Important Than a Will (In Some Situations)
In terms of immediate need, an LPA can be more important than a Will for the following reasons:
- A Will Doesn’t Help While You’re Alive
- A Will only governs what happens after you die, whereas an LPA becomes effective during your lifetime, particularly if you lose the mental or physical capacity to make decisions for yourself.
- If you have an accident or develop a condition (e.g., dementia or a stroke) that impairs your ability to make decisions, an LPA allows someone to step in and manage your affairs. Without it, your family may have to go through the Court of Protection, which can be a lengthy and expensive process.
LPAs Prevent Family Disputes During Your Lifetime
Without an LPA, if you lose capacity, decisions about your finances, healthcare, and personal care may be left to family members to argue over in court.
Having an LPA in place provides clear legal authority to your chosen representatives, reducing family conflict and confusion about who should make critical decisions on your behalf.
Do You Need Both?
The simple answer is yes as the LPA addresses potential incapacity during your lifetime, while the Will addresses your wishes after death. It’s not about one being more important than the other, but rather about them serving different needs. If you’re concerned about what happens to you while you’re still alive, particularly in the event of mental incapacity, an LPA is crucial. If you’re concerned about the distribution of your assets after death, then a Will is essential. Both documents ensure your wishes are respected and help provide clarity and peace of mind for your family.
What Powers Does an Attorney Have?
An attorney appointed under an LPA has the legal authority to act on behalf of the donor (the person who made the LPA). The scope of these powers depends on the type of LPA, the donor’s instructions, and whether the donor still has mental capacity.
Depending on the LPA type:
Powers Under a Property and Financial Affairs LPA
If you’re appointed under a Property and Financial Affairs LPA, you can make decisions such as:
- Accessing and managing bank accounts
- Paying household bills, debts, and living expenses
- Collecting pensions, benefits, or income
- Managing savings, investments, and insurance policies
- Filing tax returns and dealing with HMRC (or your country’s tax authority)
- Buying, selling, or renting out property
- Applying for state support or financial aid
- Handling business affairs (if explicitly authorised)
These powers can be used while the donor still has mental capacity if they allow it or only once they lose capacity, depending on the donor’s instructions.
Powers Under a Health and Welfare LPA
Under a Health and Welfare LPA, you may make decisions like:
- Choosing care arrangements (e.g., home care vs. care home)
- Deciding on daily routines, such as meals, hygiene, and activities
- Consenting to or refusing medical treatment
- Accessing medical records to make informed choices
- Deciding where the donor should live
- Making choices about life-sustaining treatment, if explicitly granted in the LPA
These powers can only be used when the donor has lost mental capacity to make those decisions themselves.
What Attorneys Cannot Do
An attorney must always act in the donor’s best interests and follow the principles of the Mental Capacity Act 2005 (in England and Wales, or equivalent in other countries). Even with broad powers, attorneys cannot:
- Make or alter the donor’s will
- Give away the donor’s assets, unless allowed under gifting rules (e.g., birthday gifts or charitable donations of reasonable value)
- Use the donor’s money for their own benefit
- Make decisions if the donor still has capacity, unless specifically authorised
- Delegate their authority to someone else
