A Lasting Power of Attorney is one of the most important legal documents you can put in place to protect your future. It gives someone you trust the legal authority to make decisions on your behalf if you lose the capacity to do so. Despite its significance, many people don’t know that there are different types of LPA, each serving a specific purpose.
If you’re planning ahead or supporting a loved one through the process, understanding these distinctions can help you make the right decisions at the right time. In this guide, we break down the two types of Lasting Power of Attorney used in England and Wales, what they cover, how they differ and when each might be appropriate.
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What Is a Lasting Power of Attorney?
Before looking at the types, it’s helpful to understand what an LPA is and why it matters. A Lasting Power of Attorney is a legal document that allows you (the donor) to appoint one or more people (known as attorneys) to make decisions for you if you become unable to make them yourself. This could be due to illness, injury or loss of mental capacity. Unlike an ordinary Power of Attorney, which is valid only while you have mental capacity, a Lasting Power of Attorney continues to be effective if you lose capacity. That’s why it’s often considered a crucial part of long-term planning.
The Two Types of Lasting Power of Attorney
There are two types of LPA in England and Wales:
- Property and Financial Affairs LPA
- Health and Welfare LPA
They are separate legal documents and you can choose to make one or both, depending on your needs and circumstances.
1. Property and Financial Affairs LPA
This type of LPA gives your attorney the authority to make decisions about your money and property. It can be used while you still have capacity (if you choose), as well as if you later lose the ability to manage your affairs. It covers decisions such as:
- Managing your bank and building society accounts
- Paying bills and setting up direct debits
- Collecting income, benefits or pensions
- Selling or letting out property
- Making investments (within certain limits)
Who might need it?
This LPA is particularly helpful if you’re worried about becoming physically unable to manage your finances for example, due to illness or mobility issues. It’s also useful if you travel frequently or live abroad for long periods and want someone to act on your behalf in the UK. You can specify whether your attorney can use this LPA immediately or only if you lose capacity. Many people choose to have it take effect right away for convenience especially when appointing someone they trust entirely, such as a spouse or adult child.
2. Health and Welfare LPA
This type of LPA only comes into effect if you lose mental capacity. Your attorney will then be able to make decisions about your health, care and day-to-day wellbeing. It covers decisions such as:
- Where you live (e.g. at home, in residential care)
- Your daily routine (e.g. washing, dressing, eating)
- Medical treatment
- Access to social activities and support services
- Life-sustaining treatment (if authorised)
Who might need it?
This LPA is vital if you want a trusted person to make personal and medical decisions on your behalf, should you lose the ability to make them yourself. It’s especially relevant if you have clear views about the type of care you’d want or not want in certain scenarios. One key aspect of this LPA is that you must state clearly whether or not you want your attorney to have the power to make decisions about life-sustaining treatment. If you don’t include this, healthcare professionals will make those decisions instead.
Should You Have Both LPAs?
In short, yes many people choose to set up both types of Lasting Power of Attorney. This provides comprehensive coverage, ensuring that your finances and your health are both taken care of if the need ever arises. The two documents are legally separate, so setting up one does not automatically include the other. You’ll need to complete a separate application for each and they must both be registered with the Office of the Public Guardian before they can be used.
Who Should You Appoint as an Attorney?
This is one of the most important decisions you’ll make when creating an LPA. Your attorney should be someone you trust completely to act in your best interests. You can choose:
- A family member
- A close friend
- A professional
- More than one attorney, either acting together or independently
If you appoint more than one person, you can specify how they should make decisions:
- Jointly: They must all agree on every decision.
- Jointly and Severally: They can act either together or independently, which offers more flexibility.
You should also consider appointing a replacement attorney, someone who can step in if your original choice is no longer able or willing to act.
How to Set Up a Lasting Power of Attorney
You can set up an LPA online via the GOV.UK website or use paper forms. While it’s possible to do it yourself, many people prefer to use professional support, especially if their situation is more complex or if they want to avoid mistakes that could delay the process. Key steps include:
- Choosing your attorney(s)
- Completing the LPA forms
- Signing and witnessing in the correct order
- Registering with the Office of the Public Guardian (which takes about 8–10 weeks)
There’s a registration fee for each LPA, though fee reductions and exemptions are available in some cases.
What Happens If You Don’t Have an LPA in Place?
If you lose capacity without a valid LPA, your family or friends will not automatically be able to manage your affairs. They would need to apply to the Court of Protection for permission to make decisions, which is a longer, more expensive process with ongoing supervision. Creating an LPA while you still have capacity puts you in control. It ensures your wishes are respected and spares your loved ones from legal complications during an already difficult time.
Plan Ahead While You Can
A Lasting Power of Attorney isn’t something you create when problems arise—it’s something you put in place before you ever need it. Whether you want to protect your finances, make your healthcare preferences clear or simply give peace of mind to those closest to you, an LPA is a vital part of responsible planning. If you’re not sure where to begin or want help making sure everything is handled correctly, Paradigm Wills & Legal Services can guide you through every step. From choosing the right type of LPA to registering it properly, our team ensures your documents reflect your wishes and stand up when it matters most.
