Understanding powers of attorney: A simple guide

A power of attorney is a legal document that allows you (the donor) to give another person authority to act for you.

It can be an essential tool for planning ahead, ensuring someone you trust can step in if you’re unable to make decisions yourself.

Whether you’re exploring a general power of attorney (also known as an ordinary power of attorney), a lasting power of attorney (LPA), a medical power of attorney, or an advance directive such as a living will, understanding your options helps you protect your future and support your loved ones. 

In this guide, we break down the different types available, explain the difference between an LPA and an older enduring power of attorney (EPA), and set out when and how to put these documents in place. We also answer common questions, including who can witness a power of attorney, whether a power of attorney ends at death, and how to make a living will.

Our aim is to make these complex areas clear, practical, and accessible so you can make informed decisions with confidence.

What is a general power of attorney?

A general power of attorney is typically used for short term or specific tasks. It only remains valid while you have mental capacity, which means it cannot be relied on if your capacity later changes.

It’s commonly used if you’re abroad temporarily, recovering from illness, or need someone to help with a particular transaction.

Key features of a general power of attorney

• Used for specific or short term purposes 
• Only valid while you retain mental capacity
• Commonly used for financial or administrative tasks 

If you want protection that continues if you lose mental capacity, you will need an LPA.

What is an LPA?

An LPA is the current framework in England and Wales for appointing trusted people to make decisions for you if you cannot make them yourself.

There are two types, which both must be registered with the Office of the Public Guardian (OPG) before they can be used.

1. Property and financial affairs LPA 

This allows your chosen individuals to manage day-to-day matters such as paying bills, managing bank accounts and also larger, strategic decisions such as handling investments, collecting pensions and benefits, or buying and selling property.

You can choose whether your attorneys can act as soon as the LPA is registered or only if you lose mental capacity.

2. Health and welfare LPA

This allows your attorney to make decisions about medical treatment, care homes, day-to-day living arrangements, and even life sustaining treatment if you choose.

Unlike a property and financial affairs LPA, a health and welfare LPA only takes effect once you have lost capacity.  

Benefits of an LPA

• Continues even if you lose mental capacity
• Can be tailored with instructions and preferences
• Provides protection in both financial and welfare matters

What is an EPA?

Enduring powers of attorney (EPAs) were replaced by LPAs in 2007. However, any EPA created before that date is still valid.

EPAs only cover financial matters, therefore if you want someone to make health and care decisions on your behalf, you’ll need a health and welfare LPA in addition to the EPA.

An EPA can only be registered when the donor starts to lose capacity. Many people who still have EPAs choose to create new LPAs for broader protection, especially for health related decisions.

Does a power of attorney end at death?

Yes. All forms of power of attorney (general, LPA or EPA), end immediately on the donor’s death and the attorneys must stop acting straight away. After that point, responsibility passes to the executors named in the will (or administrators if there’s no will).

Who can witness an LPA?

A donor’s signature must be witnessed by someone aged 18 or over who isn’t a named attorney or replacement attorney.

An attorney’s signature must be witnessed by someone aged 18 or over who isn’t the donor.

Attorneys and replacement attorneys may witness each other’s signatures, but not the donor’s. Witnessing must be done in person, not online.

Who can be a certificate provider for an LPA?

A certificate provider confirms that the donor understands the LPA and isn’t being pressured into signing it.

They must be:

• Aged 18 or over
• Not related to the donor or the attorneys
• Someone who has known the donor well for at least two years, or a relevant professional

Professionals who may act as certificate providers include GPs, solicitors, social workers and independent mental capacity advocates.

Attorney duties

An attorney must act in the best interests of the donor, not the donor’s family in general (unless this aligns with the donor’s wishes). 

Their responsibilities include:

• Acting honestly and with integrity
• Keeping the donor’s finances separate
• Following any instructions or preferences in the LPA
• Consulting the donor where possible

Attorneys must follow the five statutory principles of the Mental Capacity Act 2005:

1. A person must be assumed to have capacity unless it’s established that they lack capacity
2. A person isn’t to be treated as unable to make a decision unless all practicable steps have been taken to help them do so
3. A person must not be treated as unable to make a decision merely because they make an unwise decision
4. Any act done or decision made on behalf of a person who lacks capacity must be done in their best interests
5. Before the act is done, or the decision is made, regard must be given to whether the purpose can be achieved in a way that is less restrictive of the person’s rights and freedom of action

Attorneys for property and financial affairs must keep accounts and must keep their own money separate. 

Medical decisions, living wills and advance decisions

A medical power of attorney is covered by the health and welfare LPA.

A living will (also known as an advance decision or advance directive) is a separate document that allows you to record binding refusals of specific medical treatments, including life-sustaining treatment, if you later lose capacity.

Key points about living wills

Living wills and health and welfare LPAs can work alongside each other, but they must be consistent. To create a living will:

• You must be 18 or over and have mental capacity
• It must be in writing, signed and witnessed when refusing life sustaining treatment
• It must state clearly that it applies even if your life is at risk if you wish to refuse life sustaining treatment, and set out specifically the treatment to be refused.

It is also important to note that:

• A living will can be changed or withdrawn at any time while you have capacity
• Healthcare providers and loved ones should know about it
• Living wills can refuse treatment, but cannot demand specific treatment
• They only apply once a person later lacks capacity to consent
• If there’s both a health and welfare LPA and a living will, whichever is more recent generally takes precedence, if there’s any conflict 

When to set up a power of attorney

Powers of attorney should be created as early as possible. If an accident, illness or condition affects your ability to make decisions unexpectedly, having the right documents in place avoids delays and stress for loved ones and gives you prior control over who will make decisions for you.

They’re also useful when you want to plan ahead, if you have a diagnosis that may affect capacity over time, when managing complex finances, and before long travel or life changes. The key is to set it up early, while you have full capacity.

You can only put a power of attorney in place if you still have mental capacity at the time you sign it. Capacity is decision specific, meaning you must be able to understand what the power of attorney does, the authority you’re giving your attorney, and the consequences of creating it.

If you’re in the early stages of an illness that may affect memory or decision making, it may still be possible to make a power of attorney but the sooner you act, the better.

If there’s any uncertainty about your capacity, a solicitor may seek input from a healthcare professional to confirm that you understand the document.

If you have already lost capacity and can no longer understand the nature and effect of the power of attorney, it is too late to make one. In that situation, your family or those close to you would need to apply to the Court of Protection for a deputyship order instead.

How to set up an LPA 

Putting an LPA in place is one of the most important steps you can take to protect yourself and your family. Although the forms can be completed online or on paper, many people prefer to instruct a solicitor to prepare the documents to ensure they’re drafted correctly, reflect their wishes, and avoid delays at registration.

If you'd like advice on setting up an LPA, get in touch with our team and we can guide you through the whole process.

Choosing your attorneys

We can help you think through the practical considerations when appointing attorneys, including whether to appoint more than one, how they should act together and whether replacement attorneys are needed.

We can also advise on safeguarding provisions and potential family dynamics.

Preparing the LPA documents

We can draft the LPAs for you, ensuring your wishes are captured accurately. This includes advising on instructions, preferences and any bespoke provisions that can be added to the documents to make sure that they fit in with your wishes and preferred lifestyle. 

Signing and witnessing

This is often where the process can go wrong as the LPA must be signed in a strict legal order.

We can guide you through the process, act as a certificate provider where appropriate and ensure all signatures and witnessing are completed correctly to prevent the OPG from rejecting the application.

Registering the LPA with the OPG 

We can handle the full registration process, monitor progress and any enquiries. Registration times vary but typically take eight to ten weeks.
Registration is essential as the LPA cannot be used until this is complete.

Do I need a power of attorney?

Yes, if you want certainty about who will manage your affairs or make decisions on your behalf if needed. Without an LPA, your family may have to apply to the Court of Protection for authority, which can be time consuming, expensive, and emotionally challenging.

Putting a power of attorney in place ensures your wishes are respected and your affairs handled smoothly.

Business lasting power of attorney

For business owners, putting LPAs in place is an essential part of continuity planning, ensuring that a trusted person can step in to authorise payments, sign contracts and keep the business operating if you’re suddenly unable to do so.

Without this protection, the business may face significant disruption while colleagues or family apply to the Court of Protection for authority, which can take months and restrict access to bank accounts and essential decision‑making.

Summary

Powers of attorney provide essential protection if you lose the ability to make decisions.

A general power of attorney is useful for short term needs but ends if you lose mental capacity. LPAs offer long term security and cover both financial affairs and health and welfare decisions, depending on the type you choose. Older EPAs still operate but deal only with finances.

Alongside LPAs, you may also consider a living will (also known as an advance decision) to outline your medical treatment refusals. Setting these documents up early ensures your preferences are clear, reduces strain on loved ones, and gives you confidence that important decisions will be made by the people you trust.

If you would like tailored advice or support in putting powers of attorney in place, make an enquiry and a member of our team will be happy to help.

Our content explained