Powers of attorney · 8 min read · Published · Updated
Property and financial affairs LPA vs health and welfare LPA: what is the difference?
There are two types of lasting power of attorney and they do different jobs. This guide explains both in plain English so you can decide which you need.
By Aaron Johnson, Consultant Solicitor and TEP, a solicitor in Bridlington who writes every guide himself.
This guide is general information about the law of England and Wales, not legal advice. Each case is assessed on its own merits.
Guides · Powers of attorney · No. 10 of 11Reviewed · 8 minutes
Two documents, two purposes
Many people assume a single lasting power of attorney covers everything. In fact there are two separate types of LPA, each dealing with a different part of your life. The difference matters, because the powers, the timing and the practical effects of each are quite different.
Property and financial affairs LPA
A property and financial affairs LPA lets your attorney deal with your money and property. This includes running bank accounts and savings, paying bills, collecting income such as pensions and benefits, managing investments, buying, selling or renting property, and dealing with your tax.
You can choose to let your attorney act for you while you still have mental capacity. This is useful in practice, for example if you are abroad, recovering from surgery, or would simply rather someone else handled day-to-day money matters. The attorney cannot override your wishes while you have capacity. They act only with your consent.
If you prefer, you can restrict the LPA so your attorney can only act once you have lost capacity.
Health and welfare LPA
A health and welfare LPA lets your attorney make decisions about your personal care, medical treatment and daily life. This includes where you live, your daily routine and care needs, medical and dental treatment, whether you move into a care home, what you eat and wear, and your social contact with others.
Your attorney can only make a decision under a health and welfare LPA when you lack the mental capacity to make that particular decision yourself. They cannot override your wishes while you can still decide.
You can also choose to give your attorney authority over decisions about life-sustaining treatment. This choice is made in section 5 of the form, which is not optional. You must sign either Option A or Option B before you sign section 9. Otherwise the OPG may not be able to register the LPA. Option A gives your attorney this authority. Option B leaves it to your doctors. They decide in your best interests, taking your attorney's views into account. Think carefully about which option you choose.
Property and Financial vs Health and Welfare LPA
| Property and Financial Affairs LPA | Health and Welfare LPA |
|---|---|
| Covers bank accounts, investments and pensions | Covers medical treatment decisions |
| Covers buying, selling and maintaining property | Covers care home and daily care choices |
| Covers bills and financial commitments | Can include life-sustaining treatment decisions |
| Can be used while you still have capacity, if you choose | Can only be used when you lack capacity |
| Must be registered with the OPG before use | Must be registered with the OPG before use |
Key differences at a glance
When it can be used. A property and financial affairs LPA can be used as soon as it is registered, if you allow it. A health and welfare LPA can only be used when you lack capacity for the decision in question.
What it covers. The financial LPA covers money, property and assets. The health LPA covers personal care, medical treatment and where you live. There is no overlap.
Who to appoint. You can appoint different people for each LPA. A family member who is good with money might suit the financial LPA. A close relative who shares your values might suit health and welfare decisions better.
If you could not decide for yourself tomorrow
Life with a lasting power of attorney, and life without one.
Whether you need both
You are not required to make both, but there are strong practical reasons to. Loss of capacity usually affects both money and care at the same time, and only both LPAs together cover both.
Without a property and financial affairs LPA, your family may be unable to reach your bank accounts to pay your care fees. Without a health and welfare LPA, decisions about your treatment and where you live may be made by people who do not know your wishes.
Making both LPAs at the same time also costs less, because the meetings and identity checks happen once.
Practical tips
Appoint at least one replacement attorney for each LPA. Think carefully about whether your attorneys should act "jointly" (always together) or "jointly and severally" (together or separately). And talk to your attorneys about your wishes before the LPA is finalised, so they understand your values.
If you would like to discuss which type of LPA is right for you, contact Aaron.
This guide is general information, not legal advice.
Sources
The official pages behind the rules this guide explains. Each was checked on .
Written by Aaron Johnson, Consultant Solicitor and TEP · Law of England and Wales as at 20 March 2026 · Ends
