Property and financial affairs LPA
This is the LPA that keeps the bills paid. Uniquely, it can be used while you still have capacity — if you want it to be.
The short answer
- Covers bank accounts, bills, pensions, benefits, investments, and buying or selling property.
- It can be used as soon as it is registered, with your consent, while you still have capacity — or you can restrict it to when you lack capacity.
- Being a spouse or next of kin gives you no authority over someone else's money. Sole accounts get frozen.
- Attorneys must act in your best interests, keep your money separate from theirs, and keep records.
- Gifts are tightly limited — customary occasions only, and reasonable in size. Anything more needs court approval.
What's on this page
What your attorneys can do#
- Operate your bank and building society accounts;
- Pay bills, mortgage and rent;
- Claim, receive and manage pensions and benefits;
- Manage investments (within the LPA's terms);
- Deal with tax affairs;
- Buy, sell, maintain or let property, including your home;
- Pay for care and negotiate with care providers.
When it can be used#
Once registered, this LPA can be used while you still have capacity, provided you consent. That is genuinely useful if you are physically unwell, in hospital, or abroad for a long period.
If you would rather it only operated once you cannot manage yourself, you can say so in the instructions section. Be careful how it is worded, though: an instruction like "only to be used when I lack capacity" creates a practical problem, because banks then require evidence of incapacity every time — which can be slow at exactly the wrong moment.
Why next of kin is not enough#
There is no legal status called "next of kin" that gives you control of someone's finances. Being their husband, wife or child gives you nothing. Without a registered LPA:
- sole accounts are frozen;
- direct debits fail and bills go unpaid;
- a property in one name cannot be sold, even to fund care;
- pension and benefit changes cannot be made;
- your family must apply to the Court of Protection, taking months and costing far more.
Joint accounts usually continue to operate, which is why some couples keep one — but that is a workaround, not a solution, and it does nothing about property or a sole-name pension.
What attorneys must do#
Attorneys act under the Mental Capacity Act 2005 and its Code of Practice. They must:
- act in your best interests, not their own;
- help you make your own decisions wherever you still can;
- keep your money separate from theirs — no mixing, ever;
- keep records and accounts of what they spend;
- follow any instructions in the LPA and consider your preferences;
- not take advantage of their position.
The Office of the Public Guardian investigates attorneys who misuse their position, and the courts remove and prosecute them. It is a serious role, not a courtesy title.
The rules on gifts#
Attorneys may make only limited gifts on your behalf:
- on customary occasions — birthdays, weddings, religious festivals;
- to people related to or connected with you, or to a charity you already supported;
- of a size that is reasonable given your estate.
Anything beyond that — including gifting to reduce inheritance tax, or transferring property to family — requires an application to the Court of Protection. Attorneys who make large gifts without authority are personally liable to repay them.
Practical steps once it is registered#
- Give certified copies or the online access code to your bank, pension provider and any investment manager.
- Ask each institution what they need — practice varies, and doing it in advance avoids delays.
- Keep a list of accounts, policies and regular payments where your attorneys can find it.
- Tell your attorneys where the registered LPA is kept.
Want this checked for your own situation?
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Frequently asked questions
Can my attorney sell my house?
Yes, if it is in your best interests — for example to fund care — unless the LPA restricts it. Where the attorney would also benefit from the sale, or is buying it themselves, there is a conflict of interest and Court of Protection approval is likely to be needed.
Can my attorney access my bank account straight away?
Once the LPA is registered and the bank has been given a copy, yes — with your consent while you have capacity, or on your behalf once you do not. Each bank has its own process for recording an LPA, so register it with them before it is needed.
Can an attorney change my will?
Never. Making or changing a will is a purely personal act that cannot be delegated. If someone lacks capacity and their will is genuinely inadequate, the only route is an application to the Court of Protection for a statutory will.
What if I do not trust anyone with my money?
Options: appoint two attorneys who must act jointly, so neither can act alone; appoint a professional such as a solicitor, who charges; name people to be notified when the LPA is registered; or write restrictions into the LPA. Doing nothing is not the safe choice — it just means the Court of Protection decides instead.
This is general information, not legal advice. Everyone's situation is different — speak to a qualified adviser before acting. KeepTheLot is an independent information service covering England & Wales. We are not a law firm.
Part of our guide to power of attorney.