Article last updated 10 August 2026.
A lasting power of attorney (LPA) is a legal document that lets you appoint trusted people to manage your finances, property, health, or care on your behalf. It must be set up while you still have capacity – once that's lost, it's too late. Without one, your family may need to apply to the Court of Protection, which can be slower, more costly, and outside your control.
It’s one of the most practical and caring things you can put in place to protect yourself and the people you love. Yet it remains one of the most commonly deferred steps in long-term financial planning – often until it's too late to act.
We explain what a power of attorney is, why having one matters, and what to consider when setting one up.
This article is for general information purposes only and isn't legal advice. We recommend seeking independent legal advice when setting up a power of attorney. This article relates to the law in England and Wales. Different rules apply in Scotland and Northern Ireland.
Key takeaways
A power of attorney is a legal document that allows you – the "donor" – to appoint one or more trusted people, known as "attorneys," to make decisions on your behalf. Those decisions might relate to your finances, your property, your health, or your care.
The key word here is trust. You're giving someone else the legal authority to act in your name. That's why it's so important to think carefully about who you choose and to put arrangements in place while you're well and fully able to make that decision yourself.
In England and Wales, the most common form is a lasting power of attorney. There are two distinct types, and many people choose to set up both.
You do have an option to set up an ordinary power of attorney (OPA) instead of an LPA. An OPA is separate from LPA and has different rules. It’s only valid while you have mental capacity – it can’t be used if you lose it. A lasting power of attorney is specifically designed to remain in effect if and when capacity is lost.
This covers decisions about your money and assets. Your attorney can manage your bank accounts, pay bills, collect income, deal with investments, and handle property transactions on your behalf. Importantly, with your permission, this type of LPA can be used even while you still have mental capacity – for example, if you're physically unwell or simply find it easier to have someone help manage your finances.
For clients with more complex financial arrangements – investment portfolios under discretionary management, property holdings, business interests, or trust structures – the scope of an attorney's authority is considerably more significant. An attorney may need to make active investment decisions, instruct portfolio managers, execute property transactions, or navigate trust arrangements. It's worth discussing with your Investment Manager or Financial Planner how your LPA interacts with your existing financial structures.
This covers decisions about your personal wellbeing – from day-to-day care routines to medical treatment and, if you choose, decisions about life-sustaining treatment. Unlike the property and financial affairs LPA, this type can only be used once you've lost mental capacity. It gives your attorneys the authority to speak on your behalf with doctors, care providers, and other professionals, ensuring your wishes are known and respected.
Life has a way of changing when we least expect it. If you have investment portfolios, property interests, or business holdings, the absence of an LPA isn't just an inconvenience. It can leave assets frozen, investment decisions unmade, and carefully constructed financial plans unable to function at the moment they matter most.
Setting up a lasting power of attorney while you're well is, in many ways, an act of kindness to the people who care about you. It removes uncertainty, reduces the risk of family disputes, and means that if the time comes, the right people are already authorised to act.
Without an LPA in place, your family or loved ones would typically need to apply to the Court of Protection to be appointed as your "deputy." This process can be significantly slower, more complex, and more expensive than setting up an LPA in advance. It can also be emotionally draining at an already difficult time – and the outcome isn't guaranteed. The court decides who acts on your behalf, which may not be the person you would've chosen.
The practical consequences are significant:
A lasting power of attorney is a powerful document, and it's worth approaching it with care.
Choose your attorneys carefully. Your attorneys will have significant authority over your life and finances. Choose people you trust completely – whether that's a family member, a close friend, or a professional such as a solicitor. You can appoint more than one attorney and specify whether they must act jointly (together on every decision) or jointly and severally (where each attorney can act independently, or all together, which tends to be more practical day to day).
Consider a professional attorney where complexity warrants it. Where estates are complex or family dynamics are sensitive, some clients choose to appoint a professional attorney – a solicitor or trust corporation – either alongside or instead of a family member. This can provide an additional layer of objectivity and accountability, particularly where significant assets or competing interests are involved.
Consider appointing a replacement attorney. Life changes. If your primary attorney is unable or unwilling to act when the time comes, a replacement attorney can step in without the need to create a new LPA.
Be clear about your wishes. You can include instructions and preferences within the LPA itself – for example, guidance on how you'd like your finances managed or your views on certain medical treatments. The more clearly you express your wishes, the easier it is for your attorneys to act in your best interests.
Review it after major life changes. Marriage, divorce, bereavement, or a significant change in your financial circumstances are all good reasons to revisit your LPA. If an attorney is no longer the right person for the role, it's important to update your arrangements.
A lasting power of attorney must be registered with the Office of the Public Guardian (OPG) before it can be used. The LPA can’t be used until registration is complete, even in an emergency. So, it's important to begin the process well in advance of when you might need it – not as an afterthought.
Registration times have varied considerably in recent years and can take several weeks. Check current processing times at gov.uk/power-of-attorney before you start.
A registration fee is payable to the OPG per LPA. Check gov.uk/power-of-attorney for current fees and any exemptions and reductions that may apply.
A lasting power of attorney works best as part of a wider financial and estate plan – alongside a current will, any inheritance tax considerations, and your wishes for how your estate is managed and distributed. For clients with significant assets, reviewing your LPA arrangements in the context of your overall plan isn't a one-off exercise. It's an ongoing part of managing your financial life well.
A lasting power of attorney isn't something most of us like to think about. It asks us to consider a future where we may not be able to make our own decisions – and that can feel uncomfortable. But putting one in place, or regularly reviewing one you already have, is one of the most forward-thinking, responsible things you can do for yourself, for your loved ones, and the financial life you've worked hard to protect.
At Rathbones, we take a whole-of-life approach to financial planning – combining your short-term objectives and long-term goals across every aspect of your financial life.
Your Investment Manager or Financial Planner will work alongside your other legal advisers to ensure any lasting powers of attorney are reflected in your plans.
We'd recommend raising your LPA arrangements during your next annual financial review.
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This material is for information only and does not constitute advice. Tax depends on individual circumstances and legislation and HMRC practice may change. Clients should take personal advice (and tax/legal advice where relevant) before acting. Investments and tax advantaged investments can fall as well as rise and may be illiquid; eligibility and relief depend on meeting conditions.
