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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.

A kitchen table in window light holding a ring of brass keys, a diary open at blank ruled pages, a plain bank card lying face down, a pair of folded reading glasses and a pencil with a terracotta barrel.

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 is an optional section of the form. Think carefully about whether you want to include it.

Property and Financial vs Health and Welfare LPA

Property and Financial Affairs LPAHealth and Welfare LPA
Covers bank accounts, investments and pensionsCovers medical treatment decisions
Covers buying, selling and maintaining propertyCovers care home and daily care choices
Covers bills and financial commitmentsCan include life-sustaining treatment decisions
Can be used while you still have capacity, if you chooseCan only be used when you lack capacity
Must be registered with the OPG before useMust 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, while a close relative who shares your values might be the better choice for health and welfare decisions.

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.

Written by Aaron Johnson, Consultant Solicitor and TEP · Law of England and Wales as at 20 March 2026 · Ends

Questions

Questions people ask about this.

General answers for England and Wales. What applies to you depends on your circumstances.

What is the difference between the two types of LPA?

A property and financial affairs LPA covers your money and property. A health and welfare LPA covers your care and medical treatment. The financial LPA can be used while you still have capacity, if you allow it. The health and welfare LPA can only be used once you lack capacity.

Can I appoint different attorneys for each type?

Yes. Many people appoint someone good with money for the financial LPA and someone who shares their values for health and welfare.

What if I only have one type of LPA?

You have a gap. Without a financial LPA, no one has authority to manage your money. Without a health and welfare LPA, no one has authority to make care decisions. Aaron recommends both.

Does a financial LPA cover my business?

It depends on how the business is set up. A sole trader's business generally falls within the LPA. For a limited company, it depends on the articles of association. Take specific advice.

Can my attorney make a will on my behalf?

No. An attorney cannot make or change your will under any type of LPA. Only the Court of Protection can authorise a "statutory will", and only in exceptional circumstances.

Next step

Four ways to start. Take the one you are comfortable with.

Or call 01262 310 850. Monday to Friday, 9am to 5.30pm.

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Important

This guide contain general information about the law of England and Wales as at March 2026. It is not legal advice and should not be relied on in place of advice on your own circumstances. Mental capacity and powers of attorney law, and the Office of the Public Guardian's fees and forms change often; check any specific point before acting on it. Outcomes for any one person depend on their facts, the documents, and decisions taken by HMRC, the courts and others. Fees shown are fixed once agreed in writing, before any work starts. Safe Harbour Legal is a trading name of Legal Studio Solicitors (MDLS Solicitors Limited, company number 08599445), authorised and regulated by the Solicitors Regulation Authority, SRA 598793. The complaints procedure is at safeharbour.legal/complaints-procedure.