Property & Financial vs Health & Welfare LPA
Understanding the two types of Lasting Power of Attorney and why many people choose to create both.
Written by James Tyrrell · Reviewed by Anthony Dalton · Last reviewed
Many people assume that one LPA covers everything. It does not. In England and Wales, there are two distinct types of Lasting Power of Attorney (LPA), each covering a different area of your life. They are separate legal documents with different rules about when and how they can be used — and understanding the difference is essential to making sure you have the right protection in place.
At a glance
- There are two separate types of LPA: Property & Financial Affairs (money, bills, property) and Health & Welfare (medical treatment, care, living arrangements)
- A financial LPA can be used while you still have capacity; a health LPA can only be used when you lack capacity for the specific decision
- Most people need both types for full protection — one does not cover the other
- Each LPA costs £92 to register, and you can appoint different attorneys for each type
Quick Summary
- Property & Financial Affairs LPA covers money, property, bills, pensions and banking.
- Health & Welfare LPA covers care, medical treatment, living arrangements and life-sustaining treatment decisions.
- Most people need both if they want full protection.
The Two Types at a Glance
Both types of LPA are created under the Mental Capacity Act 2005 and must be registered with the Office of the Public Guardian (OPG) before they can be used. However, they cover very different types of decisions.
Property & Financial Affairs
This LPA gives your attorney the power to manage your financial matters, including:
- Bank accounts and savings
- Paying bills, rent and mortgage
- Managing pensions and benefits
- Buying, selling or renting property
- Dealing with tax and investments
- Running a business on your behalf
Can be used while you still have mental capacity, if you choose to allow it when creating the LPA.
Health & Welfare
This LPA gives your attorney the power to make decisions about your personal welfare, including:
- Medical treatment and care
- Where you live
- Day-to-day care and diet
- Who you have contact with
- Life-sustaining treatment
- Moving into a care home
Can only be used when you lack mental capacity to make the specific decision in question.
When Can Each LPA Be Used?
This is one of the most important differences between the two types, and it is often misunderstood.
A Property & Financial Affairs LPA can be used as soon as it is registered, even while you still have full mental capacity — provided you chose to allow this when creating the document. This can be very useful if, for example, you have mobility issues and want your attorney to visit the bank on your behalf, or if you are going abroad for an extended period.
A Health & Welfare LPA, on the other hand, can only be used once you lack the mental capacity to make the specific decision at hand. Your attorney cannot make health or welfare decisions for you while you are still capable of making them yourself. This is an important safeguard built into the Mental Capacity Act 2005.
Key point: Even with a Property & Financial Affairs LPA in use, you still retain full control of your finances while you have capacity. Your attorney acts alongside you, not instead of you, until you are no longer able to manage things yourself.
Why Most People Need Both Types of LPA
If you only create a Property & Financial Affairs LPA, no one will have the legal authority to make medical or care decisions on your behalf. If you only create a Health & Welfare LPA, no one will be able to access your bank accounts or pay your bills. Each type protects a different part of your life.
Consider these real-world scenarios:
- You have a stroke and cannot communicate — your family needs a Health & Welfare LPA to make decisions about your medical treatment and a Property & Financial Affairs LPA to pay your household bills
- You develop dementia — your spouse needs both LPAs to manage your care arrangements and your finances as the condition progresses
- You are in an accident and unconscious — hospital staff will consult your Health & Welfare attorney about treatment, while your Property & Financial Affairs attorney ensures your mortgage and bills are covered
Key point: Creating both LPAs at the same time is simpler and more cost-effective than doing them separately. The preparation work overlaps significantly, so the additional effort is minimal.
Can You Appoint Different Attorneys for Each?
Yes, and many people choose to do so. Because the two LPAs cover very different types of decisions, it can make sense to appoint different people depending on their strengths.
For example:
- You might appoint an adult child who works in finance as your Property & Financial Affairs attorney
- You might appoint your spouse or a close family member who understands your personal values as your Health & Welfare attorney
- You might appoint a professional (such as a solicitor) for financial matters and a family member for health decisions
Alternatively, you can appoint the same person or people for both LPAs. There is no requirement for the attorneys to be different — it is entirely your choice. Our guide on who can be an attorney for an LPA explains the eligibility rules and what qualities to look for.
Common Misconceptions About LPA Types
These misunderstandings come up repeatedly, and any one of them can leave families unprotected:
"My spouse can automatically make decisions for me"
This is not true. Without an LPA, even your spouse has no legal right to access your bank accounts, sell your property, or make medical decisions on your behalf. They would need to apply to the Court of Protection.
"One LPA covers both finances and health"
No. They are two separate documents. A Property & Financial Affairs LPA gives no authority over health decisions, and vice versa. You need both for complete protection.
"A Health & Welfare LPA lets my attorney decide everything about my care right away"
Not quite. It can only be used when you lack capacity to make a specific decision. If you can still decide for yourself, your attorney cannot override you.
"I only need a financial LPA because that's where the money is"
Financial protection is important, but so is having someone who can make health and care decisions aligned with your wishes. Without a Health & Welfare LPA, medical professionals will make those decisions for you.
What Does It Cost to Create Both?
Each LPA must be registered separately with the OPG, and each registration costs £92. If you create both types, the total OPG registration fee is £184.
If you are on a low income or receive certain means-tested benefits, you may be eligible for a fee exemption or remission, which can reduce or eliminate the registration fee entirely.
Many LPA services, including UKLPA, offer discounted pricing when you create both types together, making it significantly more affordable than preparing them separately.
Life-Sustaining Treatment: A Special Consideration
When creating a Health & Welfare LPA, you will be asked whether you want to give your attorney the authority to make decisions about life-sustaining treatment. This is one of the most significant powers you can grant.
Life-sustaining treatment includes things like ventilation, CPR, antibiotics for life-threatening infections, and artificial nutrition and hydration. If you grant this authority, your attorney can consent to or refuse such treatment on your behalf when you lack capacity.
If you choose not to give this authority, decisions about life-sustaining treatment will be made by medical professionals in your best interests. This is a deeply personal choice, and there is no right or wrong answer — but it is important to discuss it with your chosen attorney beforehand.
More Guides About LPA Types
Everything the financial LPA covers, when it can be used, and how to set one up. Health & Welfare LPA Guide
Medical decisions, care preferences, and life-sustaining treatment authority explained. Should You Create Both Types of LPA?
Why most people benefit from having both a financial and a health LPA in place. What Happens If You Only Have One Type of LPA?
The gaps in protection when you have only a financial or only a health LPA.
Not sure which type of LPA you need? Our guided service helps you decide and create the right documents. See pricing.
Key Takeaways
- Two separate documents, two different areas — Property & Financial Affairs covers money, bills and property; Health & Welfare covers medical treatment, care and living arrangements.
- Different activation rules — a financial LPA can be used while you still have capacity (if you allow it); a health LPA can only be used once you lack capacity for the specific decision.
- You can appoint different attorneys for each — choose someone financially savvy for your financial LPA and someone who understands your values for your health LPA.
- Both types cost £92 each to register — total £184 in government fees for full protection; fee exemptions and 50% reductions are available.
Helpful Answers on the Two Types of LPA
Can a Property and Financial Affairs LPA be used while I still have mental capacity?
Yes, if you choose to allow this when creating the LPA. This can be useful for practical reasons, such as having your attorney manage banking while you are abroad. You still retain full control of your finances — your attorney acts alongside you, not instead of you.
Do I need to appoint the same attorneys for both types of LPA?
No. You can appoint different attorneys for each type. Many people choose someone financially savvy for their Property and Financial Affairs LPA and someone who understands their personal values for their Health and Welfare LPA.
How much does it cost to create both types of LPA?
Each LPA requires a separate £92 registration fee with the OPG, so both types together cost £184 in government fees. Fee exemptions or 50% reductions are available for people on low incomes or certain means-tested benefits.
This guide was last reviewed and updated on . Information is based on current legislation and OPG guidance for England and Wales.
Official Guidance
Official resources from GOV.UK
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