If you're looking into how to protect your money and property for the future, a property and financial affairs lasting power of attorney is one of the most useful legal documents you can put in place. It's designed for exactly this purpose: making sure someone you trust can step in and manage your finances if you're ever unable to do this yourself.

A property and financial affairs LPA lets you choose one or more attorneys to handle things like your bank accounts, bills and property on your behalf. You can set it up to work alongside you now, or hold it in reserve for the future. Either way, it gives you and your family reassurance that your financial affairs will stay in safe hands.

At Switalskis, our lasting power of attorney solicitors help people across the UK put these documents in place correctly and without unnecessary delay. We'll explain your options clearly, draft your LPA to reflect your wishes and guide you through registration with the Office of the Public Guardian.

Demand for LPAs has grown sharply in recent years. The Office of the Public Guardian received over 1.37 million applications to register powers of attorney in a single year, according to figures reported by Legal Futures. More people than ever are recognising the value of planning ahead, rather than leaving their family to deal with the Court of Protection later on.

If you'd like advice on setting up a property and financial affairs LPA, speak to our wills and probate team today on 0800 1380 458 or using the form on our site.

What is a property and financial affairs LPA?

A lasting power of attorney (LPA) is a legal document that lets you appoint one or more people, known as attorneys, to make decisions on your behalf. There are two types: a property and financial affairs LPA and a health and welfare LPA. This guide focuses on the property and financial affairs version, sometimes referred to in full as a lasting power of attorney property and financial affairs.

The person setting up the LPA is known as the donor. You must be 18 or over and have the mental capacity to make your own decisions when you create it. Once it's registered, your attorney has the legal authority to manage your money and property in line with your instructions.

A property and financial affairs LPA is only valid in England and Wales. Scotland and Northern Ireland have their own legal frameworks for powers of attorney, so if you live elsewhere in the UK, different rules will apply. If you're unsure which document you need, our wills and probate solicitors can talk you through the options for your situation before you commit to anything.

What does a property and financial affairs LPA cover?

A property and financial affairs LPA gives your attorney authority over a wide range of financial decisions. Common examples include:

• Managing your bank account and any building society accounts
• Paying your household bills and daily expenses
• Collecting your pension, benefits or other income
• Selling property or dealing with the sale of a house on your behalf
• Managing investments and shares
• Paying for care fees, including care home costs
• Dealing with your tax affairs
• Handling correspondence with banks, building societies and the Post Office

You can also set limits on what your attorney is allowed to do. Some donors choose to restrict their attorney to certain decisions only, while others give broader authority over their property and financial affairs. Whatever you decide, your attorney must always act in your best interests and stick to any instructions or preferences you've included in the document.

For example, you might allow your attorney to have full access to manage your bank accounts and pay bills but require them to seek advice before selling your home. Setting this out clearly when you create the LPA avoids confusion later and gives your attorney a clear framework to work within. Our solicitors can help you think through which decisions to include, based on your family circumstances and what matters most to you.

Can a property and financial affairs LPA be used while the donor has capacity?

Yes. A property and financial affairs LPA can be used as soon as it's registered even while you still have full mental capacity, with your permission.

Many people find this useful if they're going into hospital for a period, travelling abroad or simply want support managing their financial affairs day to day. You can also choose to restrict your attorney so they can only act once you lose mental capacity, if you'd prefer to keep full control for as long as possible.

This flexibility is one of the main reasons people plan ahead and set up a property and financial affairs LPA long before it's actually needed, rather than waiting until a crisis forces the issue.

How does a property and financial affairs LPA differ from a health and welfare LPA?

A health and welfare LPA covers a different set of decisions to a property and financial affairs LPA. Where a property and financial affairs LPA deals with money and assets, a health and welfare attorney can make decisions about your medical treatment, daily routine and healthcare treatment, but only  if you've lost mental capacity.

A health and welfare LPA can cover things such as:

• Where you live and who provides your day-to-day care
• Consenting to or refusing medical care on your behalf
• Decisions about life sustaining treatment, if you've given your attorney authority to do this
• Liaising with social services and care providers

Many people choose to set up both types of LPA at the same time, appointing the same attorneys or different ones for each. If you already have an advance decision in place covering your medical treatment wishes, it's worth discussing this with a solicitor to make sure your documents work together rather than conflict with one another.

How does a property and financial affairs LPA differ from an enduring power of attorney?

Enduring powers of attorney (EPAs) were replaced by LPAs in October 2007. You can no longer create a new EPA, but one made and signed before that date is still legally binding, provided it was completed correctly.

An EPA only covers property and financial affairs, not health and welfare decisions. If you lose mental capacity, your attorney must register the EPA with the Office of the Public Guardian before they can continue managing your financial affairs whereas an LPA can be registered as soon as it has been signed and witnessed so that it is ready to use straight away should the need arise.

If you still hold an old EPA, it's worth having it reviewed. Setting up a property and financial affairs LPA alongside a health and welfare LPA gives you broader, more up-to-date protection than an EPA alone. Our team regularly reviews older EPAs for clients to check they're still valid and to advise on whether it's time to put a full LPA in place instead.

In addition to LPAs and EPAs there's also a simpler, everyday version worth knowing about: an ordinary power of attorney. This only lasts while you have mental capacity and is usually used for a temporary period, for example if you're abroad and need someone to manage a specific matter for you. It automatically ends if you lose mental capacity, which is why a property and financial affairs LPA is the better choice for long-term planning.

How do I set up a property and financial affairs LPA?

Property and financial affairs LPAs must be registered with the Office of the Public Guardian before your attorney can use it. Here's how the process works for preparing and registering an LPA.

Step 1: choose your attorneys and complete the LPA form

Decide who you'd like to appoint as your attorney, or attorneys, and how they should make decisions on your behalf. You can appoint one attorney or more to manage your property and financial affairs. Many people choose a family member, such as a spouse, civil partner or adult child, though you can also appoint a friend or professional attorneys, such as a solicitor, if you'd prefer.

If you appoint more than one attorney, you'll need to decide how they should make decisions:

• Jointly: all attorneys must act jointly and agree on every decision together
• Jointly and severally: attorneys can make decisions on their own or together
• Jointly for some decisions, and jointly and severally for others: a mix of the two, set out clearly in your LPA

It's also sensible to appoint a replacement attorney, in case your first choice is unable to act, for example if your attorney dies or is no longer willing or able to help. If you're weighing up who to appoint, or how they should act together, we're happy to talk this through with you before you complete any paperwork.

You will then need to complete the property and financial affairs LPA form, known as LP1F, setting out who your attorneys are. We can complete this stage for you, so your instructions are recorded accurately from the outset.

Step 2: get the LPA signed and certified

You and your attorneys will need to sign the documents in the presence of a witness. A certificate provider, whose role is to confirm that you understand what you’re doing and haven’t been pressured into making the LPA, will  also need to sign the document. The signatures must be done in a specific order, so it's worth having a solicitor deal with this for you, as getting it wrong is one of the most common reasons an application is rejected.

Step 3: notify people if needed

If you've chosen to name people to be told about your application, they must be informed before you submit your LPA for registration. This gives them the chance to raise any concerns during the statutory waiting period. This is an optional part of the LPA and is something we can discuss with you.

Step 4: send your application to the Office of the Public Guardian

Once everything is signed and witnessed, the application should be submitted to the Office of the Public Guardian and the registration fee paid. They'll carry out their checks and provided there are no errors or objections, they’ll register your LPA. We keep track of your application throughout this stage and deal with any queries from the Office of the Public Guardian on your behalf.

How long does it take to register a lasting power of attorney?

Registering a property and financial affairs LPA typically takes 8 to 10 weeks, according to GOV.UK , provided there are no mistakes in the application. This includes a statutory four-week waiting period, which gives anyone named in the LPA the chance to object before it's registered.

If there are errors on the form or the certificate provider hasn't completed their section correctly, the Office of the Public Guardian will reject the application and you'll need to correct and resubmit it, which adds further time. Getting the right advice from the outset can help you avoid this kind of delay, particularly if your LPA involves more than one attorney or complicated family circumstances and it's one of the main reasons clients ask us to handle their application from start to finish.

It is worth registering your LPA as soon as it has been signed, rather than waiting until it is needed. An attorney can still apply to register an existing LPA after you lose mental capacity, but any errors discovered at that stage may be impossible to correct because you may no longer be able to make a replacement LPA.

How much does it cost to register a property and financial affairs LPA?

The registration fee for an LPA is £92 per document. If you're registering both a property and financial affairs LPA and a health and welfare LPA, the total cost is £184.

Fee reductions and exemptions

If you have a low income or receive certain means-tested benefits, you may be entitled to a reduction or exemption from the registration fee. It's worth checking your eligibility with the Office of the Public Guardian before you apply.

Solicitor fees for preparing and registering an LPA are on top of the registration fee and we are happy to talk through the costs involved before you go ahead.. While it's possible to complete the forms yourself, mistakes are a common reason for rejection, so many people prefer the reassurance of having a solicitor manage the process on their behalf. We'll always give you a clear, upfront quote before any work begins, so there are no surprises.

Your attorney's responsibilities

Once your property and financial affairs LPA is registered, your attorney takes on some important legal duties.

Acting in your best interests

Your attorney must act in your best interests at all times and only make decisions they've been given authority to make. They should take into account your present wishes and involve you in decisions where possible, rather than simply acting on your behalf without consultation. They cannot benefit personally from their role, for example by paying themselves from your funds, unless this is specifically authorised.

Keeping accounts and following the rules

Your attorney must keep your money and property separate from their own, unless you already share a bank account. They must keep clear, up-to-date accounts of your money and property so they can be checked if needed. They also need to follow the principles set out in the Mental Capacity Act 2005 at every stage.

If you're worried an attorney isn't acting properly, or is misusing their position, you can raise this with the Office of the Public Guardian and our contested probate and Court of Protection team can advise on the next steps.

Reviewing and updating your property and financial affairs LPA

It's worth reviewing your LPA from time to time, particularly after a significant life event such as a marriage, divorce, civil partnership or the death of an attorney. If your circumstances change, you may want to appoint a different attorney or update your instructions.

You cannot simply amend a registered LPA. Instead, you would usually need to revoke it and create a new one, provided you still have the mental capacity to do so. If you lose mental capacity before making these changes, it becomes far harder (and sometimes impossible) to update your arrangements, which is another reason to get your LPA right from the outset. If your circumstances have changed since you last reviewed your LPA, our solicitors can talk you through whether it needs updating and handle the paperwork if it does.

What happens if you don't have a property and financial affairs LPA?

Without a property and financial affairs LPA in place, your family won't automatically have the legal authority to manage your money and property if you lose mental capacity. Even a spouse or civil partner can't access your bank account or make financial decisions on your behalf without one.

Instead, your family would need to apply to the Court of Protection for a deputyship order. This is a far more time consuming and costly process than setting up a property and financial affairs LPA. Court fees for appointing a deputy can run to £1,500 to £2,000 plus yearly fees., A deputy will usually need to apply for a court order for certain decisions and file annual accounts with the Office of the Public Guardian.

Setting up a property and financial affairs LPA while you have capacity is a straightforward way to avoid this. It's a much smaller cost and makes things simpler for your family in the future, compared to the ongoing supervision that deputyship involves. If your family is already facing a deputyship application because a loved one didn't have an LPA in place, our Court of Protection solicitors can support you through that process too.

How Switalskis can help

Our specialist wills and probate solicitors have extensive experience helping people set up property and financial affairs LPAs, alongside wills and other future planning documents. We'll take the time to understand your circumstances and explain your options clearly, without unnecessary legal jargon.

We can help you choose the right attorneys, decide how they should act and make sure your LPA is completed and registered correctly the first time..

Get in touch

If you'd like advice on setting up a property and financial affairs LPA, or want to discuss your options for planning ahead, our team is here to help.

Call us on 0800 1380 458 or contact us through the form on our website.