What are the five types of Power of Attorney
Many people know about Lasting Powers of Attorney, but fewer realise that different power-of-attorney documents do different jobs.
Some are designed for long-term incapacity planning. Some are useful for short-term authority while you still have mental capacity. Others are older documents that may still be valid, or business-focused versions used for continuity planning.
The right choice depends on what you need the attorney to do, when they need to act, and whether the arrangement must continue if you lose mental capacity.
This article looks at five common routes you may hear about:
Lasting Powers of Attorney, usually the starting point for long-term protection.
Property & Financial Affairs LPA, the money and property half of LPA planning.
Health & Welfare LPA, the health, care and medical decisions half of LPA planning.
General Power of Attorney, useful for short-term or urgent authority while you still have capacity.
Enduring Power of Attorney, an older document that may still matter if it was made before October 2007.
Business or Commercial LPA, used where business continuity needs separate thought.
Strictly speaking, some of these are sub-types or older versions rather than completely separate modern documents. In practice, this is the clearest way to understand the choices.
Practical checklist
Here’s when each route might matter:
Lasting Powers of Attorney: when you want long-term protection if you lose capacity.
Property & Financial Affairs LPA: when someone may need authority over money, property, bills, pensions, investments or practical financial matters.
Health & Welfare LPA: when someone may need authority over care, daily living, medical decisions or life-sustaining treatment decisions.
General Power of Attorney: when you need short-term or urgent authority while you still have mental capacity.
Enduring Power of Attorney: if you already have one made and signed before 1 October 2007, it may still be valid.
Business or Commercial LPA: if you own or run a business and want continuity if you cannot act.
What to consider
- Lasting Powers of Attorney
Lasting Powers of Attorney are the backbone of modern incapacity planning.
They are designed to let your chosen attorneys act if you cannot make decisions yourself. They must be registered with the Office of the Public Guardian (OPG) before they can be used.GOV.UK currently says LPA registration usually takes 8 to 10 weeks if there are no mistakes. The OPG registration fee is £92 per LPA.
At Fern Wills & LPAs, the professional fee is currently £250 per LPA, plus the OPG registration fee.
Most clients should consider the two halves of LPA planning together because they protect different parts of your life.
- Property & Financial Affairs LPA
This is the money and property half of LPA planning.
It can cover decisions about:
bank and building society accounts;
bills, pensions and benefits;
property and investments;
tax, insurance and financial administration;
selling or managing a home, where appropriate.
Once registered, a Property & Financial Affairs LPA can be used with your permission while you still have capacity, or later if you lose capacity.
This is often the LPA families need first in a practical emergency, because banks, pension providers, utility companies and insurers will usually need formal authority before discussing or changing an account.
- Health & Welfare LPA
This is the health, care and medical decisions half of LPA planning.
It can cover decisions about:
care arrangements;
daily living;
medical treatment;
where you live;
life-sustaining treatment decisions, if you choose to give that authority.
A Health & Welfare LPA can only be used if you cannot make the relevant decision yourself at the time.
This is why the two halves of LPA planning work best together. One deals with money and property. The other deals with health, care and welfare.
- General Power of Attorney
A General Power of Attorney is also called an Ordinary Power of Attorney.
It can be useful if you still have mental capacity but need someone to act for you temporarily, urgently or for a specific purpose.
For example:
paying bills while you are abroad;
dealing with a transaction while you are unavailable;
recovering from surgery;
covering an urgent gap while an LPA is being prepared or registered;
authorising someone to deal with a specific property, vehicle or business matter.
A General Power of Attorney can be effective as soon as it is signed. It does not need to be registered with the OPG, so there is no OPG registration fee.
It stops working if you lose mental capacity, so it is not a substitute for an LPA.
At Fern Wills & LPAs, a General or Ordinary Power of Attorney is currently £250 professional fee.
- Enduring Power of Attorney
Enduring Powers of Attorney were replaced by LPAs in October 2007, so you cannot make a new EPA now.
However, an EPA made and signed before 1 October 2007 may still be valid.
An EPA only covers property and financial affairs. It does not cover health and welfare decisions.
If the donor is losing or has lost mental capacity, an EPA may need to be registered before it can continue to be used.
If you have an old EPA, it is worth reviewing whether it still fits your situation. Some people keep a valid EPA in place. Others revoke it and replace it with modern LPAs, especially where they also want health and welfare protection.
- Business or Commercial LPA
A Business or Commercial LPA is usually a Property & Financial Affairs LPA drafted with business continuity in mind.
It can help keep a business running if you are unavailable or lose capacity. For example, it can allow suitable attorneys to deal with business accounts, contracts, invoices, suppliers or practical decisions while keeping your personal finances separate.
This can be especially useful for:
sole traders;
company directors;
partnerships;
family businesses;
landlords;
business owners whose personal attorneys may not be the right people to manage commercial decisions.
A Business or Commercial LPA is currently £250 professional fee, plus the £92 OPG registration fee.
Which route do most people need?
Most people considering lifetime planning should start with the two halves of LPA planning:
Property & Financial Affairs; and Health & Welfare.
A General Power of Attorney can be useful as a short-term or urgent support document, especially where someone still has capacity and needs authority in place quickly.
An Enduring Power of Attorney only matters if it already exists from before October 2007.
A Business or Commercial LPA is worth considering where a business would be exposed if the owner, director or key decision-maker could not act.
How this works in real life
No LPA in place
Mr Davis had not made LPAs before suffering a stroke. His family could not simply step in and manage everything straight away. Delays, property issues and third-party restrictions caused practical and financial problems that could have been reduced with properly registered LPAs.
A short-term gap while an LPA was being registered
Mrs Cole was waiting for her LPA to be registered but needed help paying bills while recovering from surgery. A short General Power of Attorney covered the immediate gap because she still had capacity and needed practical support quickly.
A business continuity problem
A business owner wanted his spouse to manage personal finances if needed, but not necessarily business decisions. A separate Business LPA allowed him to choose attorneys with the right commercial experience while keeping personal and business authority separate.
An old EPAA client found an Enduring Power of Attorney made many years earlier. It still mattered, but it did not cover health and welfare decisions and did not reflect all of the family’s current circumstances. Reviewing it helped the client decide whether to keep it, replace it or add modern LPAs alongside the wider plan.
FAQs
Can I make an LPA on my own?
Possibly, you can make an LPA yourself using the official process. The risk is that mistakes can delay registration, create extra work, or mean the document does not work as intended when it is needed. Professional help is useful where you want the choices, wording and signing process checked properly.
Are LPAs recognised abroad?
LPAs are legally binding in England and Wales. Some overseas organisations may accept them with extra authentication, such as notarisation, apostille certification, translation or local validation, but acceptance depends on the country and organisation involved.
Can I change or revoke an LPA?
You cannot simply amend a registered LPA. If you still have mental capacity, the usual route is to revoke it and make a new one. Fern Wills & LPAs can guide you through the options and the notices needed.
What about “good days” if I have dementia?
Capacity is decision-specific and can fluctuate. While you have capacity for a particular decision, you keep making that decision yourself.
A Health & Welfare LPA can only be used when you cannot make the relevant decision. A Property & Financial Affairs LPA can be used once registered, with your permission, while you still have capacity.
Do I still need a Will if I have an LPA?
Yes. LPAs cover decisions during your lifetime. A Will deals with what happens after death. They do different jobs and usually work best as part of the same wider plan.
Is a General Power of Attorney enough instead of an LPA?
Not for long-term incapacity planning.
A General Power of Attorney can be useful while you still have capacity, but it stops working if you lose capacity. An LPA is the document designed to continue after capacity is lost.
Should business owners have a separate Business LPA?
Often, yes. The right attorney for personal finances may not be the right person to run or protect a business. A separate Business LPA can help keep authority clear and reduce confusion between personal and commercial decisions.
Optional technical notes
LPAs were introduced by the Mental Capacity Act 2005 and came into use in 2007.
General Powers of Attorney are governed by the Powers of Attorney Act 1971.
Enduring Powers of Attorney are governed by the Enduring Powers of Attorney Act 1985. New EPAs cannot be made, but EPAs made and signed before 1 October 2007 may still be valid.
Apostille, notarisation and translation requirements vary depending on the country and organisation involved.
Sources and further reading
GOV.UK: Make, register or end a lasting power of attorney
GOV.UK: Use or cancel an enduring power of attorney
Age UK: Powers of Attorney
Mental Capacity Act 2005
Powers of Attorney Act 1971
Enduring Powers of Attorney Act 1985
Next steps
Deciding which Power of Attorney is right for you can be confusing.
Most people start with the two halves of LPA planning: Property & Financial Affairs and Health & Welfare. General Powers of Attorney can then be used for short-term support where appropriate, and Business or Commercial LPAs can help business owners protect continuity.
Contact Fern Wills & LPAs to discuss the right option for you.
This article is general information only, not individual advice.
