3 min read
Property & Financial Affairs Lasting Power of Attorney explained

Author: Chris Watts, Will Writer – Fern Wills & LPAs

Last verified: 25 August 2025 (England & Wales)


Quick-read summary

A Property & Financial Affairs Lasting Power of Attorney (P&F LPA) allows someone you trust to manage your money, property and financial decisions. Unlike the Health & Welfare LPA, this type can be used while you still have mental capacity (if you allow it), as well as if you later lose capacity.

It’s the legal safeguard that ensures your bills get paid, your property is managed, and your finances stay secure if you’re unable to handle them yourself.


Practical checklist – when to consider a P&F LPA

You should think about setting up a Property & Financial Affairs LPA if you:

  • Want someone to help manage your bank accounts and savings
  • Need reassurance that bills and household expenses will always be covered
  • Own property that may need to be sold, let or repaired
  • Receive income, pensions or benefits that need collecting
  • Have investments or insurance policies to be maintained
  • Worry about future loss of mental capacity and want continuity

What to consider

What your attorney can do:

  • Manage bank accounts and savings
  • Pay bills and handle household expenses
  • Collect pensions, benefits and income
  • Deal with property transactions – buying, selling, or repairing
  • Oversee investments and insurance policies
  • Make modest gifts (like birthdays or charity donations), if authorised

When it can be used:

  • Straight away – if you choose to allow use while you still have capacity
  • Otherwise – it applies once you have lost mental capacity

Choosing attorneys:

  • Must be 18+, mentally capable, and not bankrupt
  • Can be appointed jointly (decisions made together) or jointly and severally (either can act independently)

Other key points:

  • Attorneys must keep finances separate from their own
  • Jointly-owned property may require both signatures to sell
  • Some banks or institutions may still ask for original documents or certified copies

How this works in real life

We recently helped Mr Davis, who was worried about managing his property portfolio as he got older. By setting up a Property & Financial Affairs LPA, he gave his two adult children authority to handle bills and manage rental income. When he later had a spell in hospital, his attorneys were able to step in immediately—avoiding missed mortgage payments and ensuring tenants’ needs were met.


FAQs

When does a Property & Financial Affairs LPA take effect?

It can be used as soon as it is registered if you give permission; otherwise, it can only be used once you lose mental capacity.

Can my attorney sell my home?

Yes, if your LPA authorises this and it’s in your best interests. If the property is jointly owned, both signatures may be required.

What happens if I don’t have one?

Your loved ones may have to apply to the Court of Protection, which is costly and time-consuming.

Can I have more than one attorney?

Yes – you can appoint more than one and decide whether they must act jointly or can act independently.

What checks are there to protect me?

Your attorney must follow the Mental Capacity Act 2005 and is supervised by the Office of the Public Guardian. They can be investigated if concerns arise.


Optional Technical Notes (for those who want the detail…)

  • Governed by the Mental Capacity Act 2005 and regulated by the Office of the Public Guardian
  • Restrictions: attorneys must act in your best interests, keep accounts and avoid conflicts of interest
  • Bankruptcy disqualifies someone from acting as a Property & Financial Affairs attorney
  • Gifts are strictly limited under s.12 MCA 2005 unless the Court of Protection approves larger ones

Sources & further reading:


Next steps

A Property & Financial Affairs LPA is one of the most practical ways to protect your finances. Without it, even close family may be powerless to help when it matters most.

📞 Contact Fern Wills & LPAs today to discuss setting up both types of LPA—so your financial and personal wellbeing are protected, whatever the future brings.

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