Most people think a Power of Attorney is something you only need later in life. In reality, it’s about planning, control, and peace of mind at any age

A Property and Financial Affairs Lasting Power of Attorney (LPA) ensures that if you’re ever unable – or simply don’t want – to manage your finances yourself, someone you trust can legally step in

In this first of two posts on LPAs, NMTBP explains what a Financial LPA is, why it’s important, and exactly how to set one up in England and Wales

What is a Property & Financial Affairs LPA?

A Property and Financial Affairs LPA allows you (the donor) to appoint one or more people (your attorneys) to make decisions about your money and property

This can include:

• Managing bank and savings accounts

• Paying bills and everyday expenses

• Collecting pensions or benefits

• Buying or selling property

• Handling investments and tax affairs

Unlike a Health and Welfare LPA, a Financial LPA can be used while you still have mental capacity, if you choose — for example, if you’re unwell, travelling, or want help managing complex finances

Why having one in place is so important

Without a Financial LPA:

• Even close family members cannot access your accounts

• Spouses and civil partners have no automatic legal authority

• Loved ones may have to apply to the Court of Protection

• Decisions become slow, expensive, and stressful at the worst possible time

With an LPA, you decide in advance:

• Who acts for you

• How they act

• When they can step in

It’s about retaining control, not giving it up

Step-by-Step: how to set up a Financial LPA

Step 1: Make sure you’re eligible

You must:

• Be 18 or over

• Have mental capacity at the time of making the LPA

• Be acting freely, without pressure

Once capacity is lost, it’s too late to create an LPA

Step 2: Choose your attorney(s)

Your attorney must:

• Be 18 or over

• Be financially responsible

• Not be bankrupt (for a Financial LPA)

You can appoint:

• One attorney

• Multiple attorneys jointly (all decisions together), or

• Jointly and severally (together or independently)

You can also name replacement attorneys if your original choice can no longer act

Step 3: Decide how and when they can act

You can choose whether your LPA:

• Can be used as soon as it’s registered, or

• Only once you lose mental capacity

You can also add:

• Preferences (guidance your attorney should follow)

• Instructions (legally binding rules)

Clear instructions can help avoid confusion or family disputes later

Step 4: Choose a certificate provider

A certificate provider confirms that:

• You understand the LPA

• You’re not under pressure

• You’re making it voluntarily

They must be:

• Someone who has known you well for at least two years, or

• A professional (e.g. solicitor, GP, social worker)

They cannot be an attorney or closely related to one

Step 5: Complete the LPA form

You can:

• Use the online government LPA service (recommended), or

• Fill out a paper form

The online service reduces errors and guides you through each stage. You can still print the document for signing

Step 6: Sign in the Correct Order

This is one of the most common points where mistakes happen.

The correct order is:

1. You (the donor)

2. The certificate provider

3. Your attorney(s)

Each signature must be:

• Witnessed

• Correctly dated

An incorrect order can invalidate the application

Step 7: Register the LPA

Your LPA must be registered with the Office of the Public Guardian (OPG) before it can be used.

• Fee: £82 per LPA

• Fee reductions or exemptions may apply

• Registration typically takes 8–10 weeks

You can register immediately or later, but early registration avoids delays in emergencies

Step 8: Store it safely and tell the right people

Once registered:

• Store the original securely

• Provide certified copies to attorneys if needed

• Inform banks or financial institutions when it’s activated

Do you need a solicitor?

Not necessarily. Many people complete an LPA themselves

However, professional advice can be helpful if:

• Your finances are complex

• Family relationships are difficult

• You want detailed safeguards or restrictions

Can I restrict when my Attorney can act?

Yes — when setting up the LPA, you can include instructions, such as:

• The LPA can only be used if a doctor confirms you lack capacity

• The attorney may only manage certain accounts

• Another person must be consulted before major decisions

Be careful: overly strict instructions can make the LPA hard or impossible to use when it’s genuinely needed

Can I revoke a Financial LPA?

Yes, as long as you still have mental capacity

You can:

• Revoke the LPA entirely

• Replace an attorney

• Create a new LPA with different terms

Revocation must be done formally and notified to the Office of the Public Guardian and all attorneys

A final thought

A Property and Financial Affairs LPA is one of the most practical legal protections you can put in place. It ensures that if life changes suddenly or gradually, your finances are handled smoothly, lawfully, and by people you trust

It’s not about expecting the worst — it’s about being prepared for reality