Lasting power of attorney – do you need it and how to set it up
A lasting power of attorney can be used to appoint a loved one to help with important financial and medical decisions. Prices have increased but it is still a cost-effective way of gaining peace of mind.
Laura Miller
The cost of registering a lasting power of attorney (LPA) has increased – but it is still less than £100 to make sure someone you trust will manage your affairs if you are unable to.
The application fee jumped from £82 to £92 for LPA applications received from 17 November. But despite the fee hike, families considering setting up an LPA are being urged to act to ensure their loved ones are protected if the worst happens.
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There’s a lack of awareness - and also confusion - around LPAs, according to research. A survey of 1,200 savers by Paragon Bank reveals that a third (34%) have not discussed power of attorneys with family or friends. Just over one in 10 (12%) wrongly believe a bank can appoint an LPA for an individual.
Chris Williams, Paragon Bank customer service director, said: “It’s never too early to set up a power of attorney, regardless of age. Life is unpredictable and ensuring someone you trust can manage your accounts if you’re unable to is essential.”
He added: “We understand that discussing finances can feel uncomfortable, but it’s a practical step that prevents stress and confusion later. We regularly speak to families who face difficulties because PoA arrangements weren’t in place, and we cannot grant access without the proper legal authority. Sorting out a PoA is a sensible and pragmatic step.”
If something unexpected were to happen and you couldn’t manage your affairs, your loved ones wouldn’t automatically be allowed to act on your behalf. They would have to apply to the Court of Protection, which can be a slow and expensive process – much more expensive than the £92 application fee for lasting power of attorney.
Creating an LPA while you’re healthy ensures that someone you trust can step in quickly if the unexpected occurs.
What is a lasting power of attorney?
An LPA gives named family members or friends the ability to manage your affairs if you lose mental capacity.
For example, if you have dementia or become too frail to manage your own finances, you can use an LPA to appoint named people – known as attorneys - to help with your bank account and money-related decisions.
There are two types of LPA. One for health and welfare – to help with medical issues - and the other for property and financial affairs to manage your money.
These legal documents mean you can get help with making decisions on your health and finances.
"Ideally, all adults should have an LPA, regardless of age or health,” says Lucy Bluck, a solicitor specialising in personal planning at Anthony Collins.
“It’s like having an insurance policy that allows people you trust to act in your best interests and step into your shoes and make decisions on your behalf if you find yourself in a position where you can’t make those decisions anymore, perhaps due to an injury or medical event.
“In terms of your finances, an LPA also enables someone to act on your behalf even if you still have capacity, for example, if things like managing bank statements and utility bills are becoming too difficult, or negotiating contracts is becoming too much to deal with.”
Anyone whose unexpected incapacity would cause serious financial problems for others should have an LPA in place, says Andrew Titmus, partner, and private client solicitor at Parfitt Cresswell.
He says: “This includes company owners and parents of young children.
“As a parent, the loss of capacity of one of them through a medical condition or a car accident could be devastating in accessing funds for day-to-day use in looking after the home and the family. For a company owner it may mean that employees and suppliers cannot be paid.”
This doesn’t mean giving up control though. While you have mental and physical capacity, you retain control of your affairs and you continue to make decisions for yourself but can ask your attorneys for support if you need it.
Why you may need a lasting power of attorney
Without an LPA, if a loved one loses mental capacity then often nothing can be done for them, or in some circumstances the state takes over.
You may even have to apply to a court to gain control of their finances.
“All too often we take calls that begin ‘Dad passed away six weeks ago, and we need an LPA for Mum because we don’t want the problems for her that we had with him’. Being unable to access funds that are locked up can cause real hardship and frustration for many families,” says Malcolm Roberts, director at LPA Now.
“Not having the legal authority to ensure that well-known wishes concerning care are carried out can cause massive distress to those closest to someone who is in decline, when they find themselves powerless to affect decisions being made by medical staff, or social services.”
How to apply for lasting power of attorney
You can complete an LPA for health and/or financial affairs on the Gov.uk website but it will need to be printed, signed by the person it concerns, their attorneys and witnesses before it is sent to the Office of the Public Guardian (OPG) to be registered.
There are plans to bring this process fully online.
Making an LPA costs £92. If you have an income below £12,000, or get certain benefits, you might qualify for a lower fee, or the fee might be waived altogether.
Many people complete LPAs easily without legal advice but if your affairs are complex, you may want to use a solicitor, which will add to the costs, though it could save you a lot of stress.
Families have had to waste a collective £5 million – as well as countless hours – refiling power of attorney paperwork, often rejected due to errors, according to data.
A total of 133,760 lasting power of attorney (LPA) registrations were rejected in England and Wales in 2024, as the number of applications soared to nearly 1.5 million.
That marked a record 199% rise in LPA rejections in England and Wales in 2024 compared to 2021, figures from a Freedom of Information request to the Office of the Public Guardian showed.
Families should check the paperwork carefully before sending it off to avoid making mistakes and causing delays.
What to watch out for with a lasting power of attorney
It is up to you who you decide to make an attorney for your affairs.
But Hannah Borner Webster, partner at Taylor Walton Solicitors, says it’s vital to choose someone you trust and who knows you well enough to understand how you would want decisions to be made.
“If you are choosing more than one attorney then it is important to choose people who get on to avoid disagreements,” she says.
“They should be responsible and have the necessary skills to make decisions on your behalf.”
There is no democracy among attorneys, adds Roberts at LPA Now, so if a family member doesn’t get on with their brothers and sisters or has a history of stubbornness, or just being argumentative, they could paralyse an LPA.
He suggests it is worth clarifying what you want to happen, and write down your wishes for various scenarios to help avoid or at least reduce disputes.
“Advanced statements, or letters of wishes can be put in place, so attorneys have a solid reference point if you have specific detailed requirements,” says Roberts.
“This can remove any ambiguity between say attorneys who perhaps have been closer to a loved one in the later stages, than others who live further away.”
