The Simple Explanation
A Lasting Power of Attorney — often shortened to LPA — is a legal document that lets you choose people you trust to make decisions on your behalf if you become unable to make them yourself.
The key word is "lasting" — unlike some older forms of legal authority, an LPA can continue to be valid even after you have lost mental capacity.
The Two Types of LPA in England and Wales
There are two types of Lasting Power of Attorney in England and Wales, and they cover very different situations:
1. Property & Financial Affairs LPA
Covers decisions about your money, bank accounts, bills, pensions, benefits and property. This type can be used with your permission even while you still have mental capacity.
2. Health & Welfare LPA
Covers decisions about care, medical treatment, daily routine, where you live and life-sustaining treatment preferences. It can only be used when you cannot make those decisions yourself.
Who Needs an LPA?
Many people assume an LPA is only for the elderly. In reality, loss of mental capacity can happen at any age — through a serious accident, a stroke, a brain injury or a sudden illness.
There is an important legal requirement, under the Mental Capacity Act 2005, which is designed to protect and empower individuals, aged 16 and over, who cannot make their own decisions due to an impairment, or disturbance, in the functioning of the mind or brain, and provides the legal framework for assessing capacity, and making decisions on someone else's behalf. You must have mental capacity when you make the LPA, and you cannot make one after losing mental capacity, and an independent Certificate Provider must declare that at the time of signing, the Donor has the mental capacity to understand, and sign the LPA Application.
What Happens Without an LPA?
Without an LPA, your family may find they have very limited legal authority to act on your behalf. Being a spouse, partner or next of kin does not automatically give someone the right to manage bank accounts, deal with property or make certain medical decisions.
The alternative, if you have already lost capacity, is for a family member to apply to the Court of Protection — a process that can take many months and cost significantly more than setting up an LPA in advance.