Planning ahead: why a power of attorney matters
Have you ever thought about how you and your family would manage your financial and medical affairs if you have an accident or illness that affects your ability to make decisions? It’s a good idea to plan ahead for a time when you might not be physically or mentally able to manage your own finances, including your pension.
A power of attorney is a legal document that allows you to appoint someone (called an ‘attorney’) to help you make decisions – or even to make them on your behalf. Your attorney could be a friend, family member or solicitor – it’s up to you.
There are two different types of power of attorney:
- Property & financial affairs: This lets your attorney manage your bank accounts, pay bills, collect benefits and buy or sell property. It can be used with your permission once registered.
- Health & welfare: This covers decisions about your daily routine, medical care and care-home arrangements. It can only be used if you can no longer make decisions yourself.
Why is a Power of Attorney important?
A Power of Attorney must usually be set up while you have mental capacity, so it’s worth considering before it’s urgently needed. Even if you’re married or in a civil partnership, your partner can’t automatically manage your affairs unless you have a power of attorney in place. Instead, your loved ones might have to apply to the Court of Protection to become a ‘deputy’ – which can be a time consuming, costly and complex process. By putting a Power of Attorney in place now, you can choose someone you trust to make decisions on your behalf if you lose capacity in the future, rather than leaving it to the Court of Protection to decide who should be appointed, which may not be the person you would have chosen.
How much does it cost?
In England and Wales, the government registration fee is currently £92 (as of 2026) for each LPA. If you register both types — one for property & financial affairs and one for health & welfare — the total registration fee is currently £184. Some people can apply to pay a reduced fee or no fee, depending on their income or whether they receive certain means-tested benefits. If you choose to use a solicitor or professional adviser to prepare and/or register the LPA on your behalf, their fees will be additional and can vary.
Where can I find out more?
You can find out more on the MoneyHelper website.
As you might expect, legal documents like powers of attorney are complicated, so we recommend getting advice from a legal professional before setting one up.
The GOV.uk website has all the necessary forms to complete and details of how to pay the fees if you decide to set it up without using a solicitor.
Important to know
This page is for general information only and is not legal advice. The information above applies to lasting powers of attorney in England and Wales. The rules are different in Scotland and Northern Ireland, so please check the relevant guidance if you need arrangements to work outside England and Wales.