A Property and Financial Affairs Lasting Power of Attorney allows you to choose trusted people to help manage your money and property if you need support now or in the future.
It can cover everyday matters such as paying bills and dealing with bank accounts, as well as more significant decisions involving investments, pensions or the sale of a home.
Unlike a Health and Welfare LPA, a registered Property and Financial Affairs LPA may be used while you still have mental capacity if the document allows it and you give permission. It can also continue to be used if you later lose the capacity to make the relevant financial decision yourself.
This guide explains how a Property and Financial Affairs LPA works in England and Wales, what attorneys may be able to do, and the safeguards that apply.
What is a Property and Financial Affairs LPA?
A Property and Financial Affairs Lasting Power of Attorney is a legal document through which you, as the donor, appoint one or more attorneys to make or help with decisions about your money, property and other financial affairs.
You must have mental capacity to make the LPA. This means that, at the time it is created, you must be able to understand the nature and effect of the document and the authority you are giving.
The LPA must be registered with the Office of the Public Guardian before an attorney can use it.
You can make a Property and Financial Affairs LPA on its own or alongside a Health and Welfare LPA.
What decisions can a financial attorney make?
The exact authority depends on the wording of the registered LPA. Subject to that wording and the law, an attorney may be able to help with decisions about:
- bank and building society accounts;
- household bills and regular payments;
- benefits, pensions and other income;
- tax matters;
- savings and investments;
- insurance policies;
- property maintenance;
- buying or selling property;
- paying for care or support; and
- other financial commitments.
An LPA does not mean that the attorney owns the donor’s money or property. The attorney manages those affairs on the donor’s behalf and must act in the donor’s best interests.
When can a Property and Financial Affairs LPA be used?
A Property and Financial Affairs LPA can only be used after it has been registered by the Office of the Public Guardian.
The donor can choose whether the attorneys may act:
- as soon as the LPA has been registered, with the donor’s permission; or
- only when the donor lacks mental capacity to make the relevant financial decision.
If the donor still has capacity and the LPA permits earlier use, the attorney should only act with the donor’s agreement. The donor remains in control and can continue making their own decisions.
This flexibility can be useful where someone remains capable of managing their affairs but would like practical help because of illness, disability, reduced mobility, travel or difficulty dealing with paperwork.
What does mental capacity mean?
Mental capacity is the ability to make a particular decision at the time it needs to be made.
A person may be able to make some financial decisions but not others. They may also have capacity at one time but not another.
Under the Mental Capacity Act 2005, a person should be assumed to have capacity unless it is established otherwise. They should also be given practical support to make their own decision before somebody decides on their behalf.
An unwise decision does not, by itself, prove that somebody lacks capacity.
Why make a financial LPA before it is needed?
A Property and Financial Affairs LPA allows you to choose who you trust and set out how they should act while you still have capacity to make those choices.
Without a suitable LPA, family members do not automatically gain authority to manage your accounts or property. If you later lose capacity, somebody may need to apply to the Court of Protection for deputyship.
Our related guides explain why your children cannot automatically make decisions for you and the difference between a Lasting Power of Attorney and deputyship.
Who can be appointed as an attorney?
An attorney must be aged 18 or over.
You may appoint:
- a spouse or civil partner;
- an adult child;
- another relative;
- a trusted friend;
- a suitable professional; or
- more than one person.
For a Property and Financial Affairs LPA, an individual who is bankrupt or subject to a debt relief order cannot act as an attorney while that restriction applies.
The best choice is not always the person who lives nearest or the eldest member of the family. Consider trustworthiness, financial responsibility, organisation, availability and the ability to work with any other attorneys.
How can several attorneys be appointed?
If you appoint more than one attorney, you must decide how they will make decisions.
Jointly
All attorneys must agree and act together for every decision.
This can provide a strong safeguard, but it may also make everyday administration less flexible. The LPA may also become unusable if one joint attorney can no longer act, unless the document has been structured appropriately.
Jointly and severally
The attorneys may act together or independently.
This can make it easier for one attorney to deal with routine matters while another is unavailable. It requires confidence that each attorney can be trusted to act alone.
Jointly for some decisions and jointly and severally for others
You may require agreement for specified important decisions while allowing attorneys to act independently for other matters.
The wording must be clear and workable. Complicated or contradictory instructions can cause practical problems when banks and other organisations examine the document.
Should you appoint replacement attorneys?
A replacement attorney can step in if an original attorney can no longer act.
This may happen if an attorney:
- dies;
- loses mental capacity;
- chooses to stop acting;
- becomes bankrupt or subject to a debt relief order;
- is removed by the Court of Protection; or
- can no longer act because a marriage or civil partnership with the donor has ended, depending on the wording of the LPA.
Replacement arrangements should be considered carefully, particularly where the original attorneys have been appointed jointly.
What is the certificate provider?
A certificate provider is an independent person who confirms that the donor understands the LPA and is making it freely, without pressure or fraud.
The certificate provider must meet the eligibility requirements and should be able to form a genuine view about the donor’s understanding and freedom of choice.
This is an important safeguard within the LPA process.
Can you include preferences and instructions?
Yes. An LPA may contain preferences and instructions.
A preference tells the attorneys how the donor would like them to approach a matter, but it is not normally legally binding.
An instruction tells the attorneys what they must or must not do and is binding if it is valid and workable.
Possible subjects might include:
- consulting a particular person before a major decision;
- using a named financial adviser, where appropriate;
- keeping a minimum balance in a particular account;
- approaching the sale of a home in a particular way; or
- providing regular financial information to another trusted person.
Instructions must not require an attorney to break the law, conflict with the Mental Capacity Act or make the document impossible to use. Tailored guidance can help ensure that the wording reflects your wishes without creating unintended restrictions.
What duties does a financial attorney have?
An attorney must follow the Mental Capacity Act 2005, the LPA and any relevant guidance.
Important duties include:
- supporting the donor to make their own decisions wherever possible;
- acting in the donor’s best interests when the donor cannot decide;
- staying within the authority given by the LPA;
- keeping the donor’s money separate from their own;
- keeping appropriate accounts and records;
- avoiding conflicts of interest;
- maintaining confidentiality; and
- choosing the least restrictive suitable option.
An attorney must not treat the donor’s assets as their own or use the role for personal benefit.
How should an attorney make a best-interests decision?
Where the donor lacks capacity for a particular decision, the attorney must consider what is in the donor’s best interests.
This includes considering:
- the donor’s past and present wishes;
- any relevant beliefs and values;
- the donor’s written preferences and instructions;
- whether capacity may return;
- whether the decision can wait;
- the views of people involved in the donor’s care or interested in their welfare; and
- all other relevant circumstances.
The attorney should involve the donor as fully as possible, even where the donor cannot make the final decision independently.
Can an attorney sell the donor’s home?
A Property and Financial Affairs LPA may give an attorney authority to sell the donor’s property, provided the LPA does not restrict that power and the sale is in the donor’s best interests.
The attorney should consider the donor’s wishes, living arrangements, care needs and financial position. Independent valuation and professional advice may be appropriate.
Additional legal issues can arise where:
- the attorney wants to buy the property;
- the property would be sold below market value;
- the donor and attorney own the property together;
- a conflict of interest exists; or
- the transaction amounts to a gift.
In those circumstances, authority from the Court of Protection or other specialist advice may be required.
Can an attorney make gifts?
An attorney’s power to make gifts is limited.
Small and customary gifts may sometimes be permitted on occasions such as birthdays, weddings or religious celebrations, and donations may be made to charities the donor supported. Any gift must be reasonable in relation to the donor’s circumstances.
Larger gifts, unusual transfers, loans, payments to the attorney or attempts to reduce the donor’s estate may require approval from the Court of Protection.
An attorney should not assume that a gift is allowed simply because the donor made similar gifts in the past or because the attorney expects to inherit eventually.
Can an attorney manage investments?
An attorney may be able to manage savings and investments within the authority granted by the LPA.
They should consider the donor’s needs, risk tolerance, expected expenditure and existing financial arrangements. Appropriate regulated financial advice may be needed.
Attorneys should avoid making speculative decisions or changing investments for their own benefit.
Can an attorney access a joint bank account?
Joint accounts can require careful handling.
A bank may need to understand whether the donor still has capacity, whether another account holder can continue operating the account and how the LPA applies. The account provider’s procedures may vary.
The attorney must distinguish the donor’s money from money belonging to another account holder and should keep clear records.
How does an attorney prove their authority?
Organisations may ask to see:
- the original registered LPA;
- an official or certified copy;
- an online access code, where the government’s online service can be used;
- proof of the attorney’s identity and address; and
- information about whether the donor has capacity and has authorised the attorney to act.
Banks, pension providers and other organisations may have their own identification and security procedures.
Can the donor change or cancel the LPA?
While the donor has mental capacity, they may be able to revoke the LPA or remove an attorney using the appropriate formal process.
Changing the names of attorneys within an existing LPA is not usually as simple as editing the document. A new LPA may be needed, depending on the change required.
The Office of the Public Guardian must also be told about certain changes, including changes of name or address, the death of an attorney or a replacement attorney beginning to act.
When does a Property and Financial Affairs LPA end?
An LPA ends when the donor dies. From that point, authority over the estate passes to the executors or administrators rather than the attorneys.
It may also end or be affected if:
- the donor revokes it while they have capacity;
- the Court of Protection cancels it;
- a sole attorney can no longer act and there is no effective replacement;
- joint attorneys can no longer act under the appointment structure; or
- other legal events affect the appointment.
An attorney must stop using the LPA as soon as their authority ends.
Common misunderstandings about financial LPAs
“My spouse can already deal with everything.”
Marriage or civil partnership does not automatically give one person authority to manage all assets held solely in the other person’s name.
“My children can step in if I become unwell.”
Adult children do not automatically gain legal authority over a parent’s accounts or property.
“An LPA means I lose control immediately.”
No. If you have capacity, you remain entitled to make your own decisions. Where the LPA permits early use, an attorney should act only with your permission.
“My attorney can give my money away.”
Gift-making powers are restricted. Significant or unusual gifts may require Court of Protection approval.
“The form can be signed now and registered later if needed.”
An unregistered LPA cannot be used. Delaying registration may also mean that errors are only discovered when the document is urgently needed.
Questions to consider before making a financial LPA
- Whom do I trust to manage my money responsibly?
- Would my chosen attorneys work well together?
- Should they be able to act independently?
- Do I want replacement attorneys?
- Should the LPA be usable with my permission while I have capacity?
- Are there any preferences or instructions worth recording?
- Are my financial affairs unusually complex?
- Who should know that the LPA exists and where it is stored?
Property and Financial Affairs LPA guidance in Dorset
Brooks Wills supports individuals and families across Poole, Bournemouth, Christchurch, wider Dorset and West Hampshire with clear, professional guidance about Lasting Powers of Attorney.
We explain the choices in plain English, including who to appoint, how attorneys should work together and whether preferences or instructions may be appropriate.
Learn more about our Lasting Powers of Attorney services.
Brooks Wills is a member of the Institute of Professional Willwriters and the Society of Will Writers.
Call, message or book a consultation to discuss putting a Property and Financial Affairs LPA in place.
Simplifying legacies, securing tomorrow.
This article provides general information for England and Wales. It is not legal, tax or financial advice. The appropriate arrangements depend on individual circumstances.
Frequently asked questions
Can a Property and Financial Affairs LPA be used before I lose capacity?
Yes, once it has been registered, if the LPA allows this and you give your attorney permission. You remain entitled to make your own decisions while you have capacity.
Can my attorney withdraw money from my bank account?
An attorney may be able to access and manage an account within the authority granted by the LPA. They must use the money for your benefit, keep appropriate records and follow any restrictions in the document.
Can an attorney sell my house?
They may be able to do so if the registered LPA gives sufficient authority, the document contains no relevant restriction and the decision is in your best interests. Transactions involving a conflict, gift or sale below market value may require further authority.
Can I appoint more than one financial attorney?
Yes. You can appoint attorneys jointly, jointly and severally, or jointly for some decisions and jointly and severally for others. The most suitable structure depends on how you want decisions to be made.
Does a financial attorney control health and care decisions?
No. A Property and Financial Affairs LPA does not provide authority over health and welfare decisions. Those matters require a separate Health and Welfare LPA or another appropriate legal basis.
What happens to the LPA when I die?
The LPA ends immediately. Your attorneys no longer have authority, and responsibility for your estate passes to the executors named in your will or to administrators under the intestacy rules.
