Power of Attorney and Later-Life Financial Planning
Without a registered Lasting Power of Attorney, if you lose mental capacity, your family cannot simply step in to manage your finances — even a spouse. They'd need to apply to the Court of Protection for a deputyship order, a process that typically takes months and costs significantly more than setting up an LPA in advance.
A Lasting Power of Attorney is one of the most important documents in later-life planning — and one of the most commonly put off. Without one, your family could face a lengthy, expensive court process if you ever lose the ability to manage your own affairs. Here's what it actually involves.
The Two Types of LPA
Most people benefit from setting up both types together:
Property and Financial Affairs LPA — gives your chosen attorney(s) the power to manage your money, property, bank accounts, and financial decisions. You can choose for this to take effect immediately (even while you still have capacity, for convenience) or only once you lose capacity
Health and Welfare LPA — gives your attorney(s) power over medical treatment and daily care decisions, including, if you specifically opt in, decisions about life-sustaining treatment. This only takes effect once you've lost mental capacity
What It Actually Costs in 2026
The mandatory registration fee, paid to the Office of the Public Guardian, is £92 per LPA — so £184 total if you register both types. This is the only compulsory cost if you complete the forms yourself via the free government online service.
DIY (gov.uk's free service): £184 total for both LPAs (registration fee only)
Will-writer or estate planner: typically £150-£500 per LPA on top of the registration fee
Solicitor: typically £300-£600+ per LPA on top of the registration fee
Fee reductions are available: a 50% reduction applies if your gross annual income is under £12,000, and full exemption applies if you receive certain means-tested benefits — though Universal Credit alone no longer automatically qualifies for full exemption as of February 2026; UC recipients are instead assessed for the 50% reduction.
Choosing Your Attorney
You can appoint more than one attorney, and choose whether they must act jointly (agreeing on every decision together) or jointly and severally (each able to act independently). Joint-and-several is often more practical day to day, but worth discussing openly with whoever you appoint, since the responsibility is significant.
It's also possible, and often sensible, to name a replacement attorney in case your first choice is unable or unwilling to act when needed.
Why This Matters for Later-Life Financial Planning Specifically
An LPA becomes directly relevant to several of the decisions covered elsewhere in this guide:
If you're considering equity release or a RIO mortgage, having an LPA in place means these arrangements can continue to be managed even if you later lose capacity
If care funding decisions arise (see our paying for care guide), your attorney can make these decisions on your behalf if you're unable to
Attorneys have limited legal power to continue lifetime gifting on your behalf — generally restricted to modest, customary gifts unless the Court of Protection specifically authorises more, which matters if gifting was part of your estate plan
Setting One Up
The gov.uk online service walks you through the process directly, and is the lowest-cost route if your situation is straightforward. If your finances are more complex — significant property, business interests, or a SIPP — a solicitor or specialist estate planner can help ensure the LPA is drafted with your specific circumstances in mind, including any restrictions or guidance you want to give your attorney.
This is worth setting up well before it's needed — an LPA can only be created while you still have mental capacity, so waiting until a health scare prompts the decision can be too late.
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Not sure which option fits your circumstances?