Who Pays the Cost of an LPA?
Understanding who is responsible for LPA costs and whether others can help cover the expense.
Written by James Tyrrell · Reviewed by Anthony Dalton · Last reviewed
One of the most common questions about Lasting Powers of Attorney is who actually foots the bill. The costs involved — from professional fees to the government registration charge — can add up, and it is not always obvious who should pay. This guide explains the usual arrangements, the legal position, and your options. For official information, see OPG fee guidance on GOV.UK.
At a glance
- Usually the donor pays all LPA costs, including the £92 OPG registration fee and any professional preparation fees
- Anyone can pay on the donor's behalf — adult children, spouses, and other family members commonly cover the costs
- Paying for someone else's LPA has no tax implications — the amounts are well within the annual gift exemption
- Fee reductions (to £46) or full exemptions are available for donors on low incomes or means-tested benefits
Usually, the Donor Pays
In most cases, the person making the LPA — known as the donor — pays all the costs. This includes both the professional preparation fee (if using a solicitor or online service) and the £92 government registration fee per LPA.
This makes sense because the LPA is the donor's document. It is created to protect their interests and give them peace of mind that trusted people can manage their affairs if they lose mental capacity. The donor is the one who benefits most from having an LPA in place.
For a full breakdown of what these costs look like, see our guide on how much an LPA costs.
Can Family Members Pay?
Yes, absolutely. There is no legal requirement for the donor to personally pay the costs. Family members often pay for an LPA as a practical or generous gesture, particularly in these situations:
- Adult children paying for elderly parents — This is the most common scenario. Children may arrange and pay for their parents' LPAs, recognising that having the documents in place will make life much easier for the whole family if a parent loses capacity.
- Spouses or partners — Couples often make LPAs together, and one partner may cover the costs for both.
- Siblings sharing the cost — Multiple family members sometimes split the expense between them, especially when setting up LPAs for a parent.
From a legal perspective, it does not matter who physically pays for the LPA. The document is still the donor's, and the person paying has no special rights or influence over the LPA as a result of paying. However, if someone other than the donor is paying, it is important to ensure there is no suggestion of undue influence or pressure.
Key point: Anyone can pay for an LPA on behalf of the donor. However, fee reductions and exemptions are based on the donor's income and benefits, regardless of who pays. See our guide on LPA fee reductions for details.
Can the Attorney Pay?
An attorney can pay for the LPA costs, but this requires some care. Because the attorney is the person who will be given legal authority under the LPA, there is a potential perception that they are funding the LPA for their own benefit — to gain control over the donor's affairs.
In practice, most attorneys who pay are close family members (a son, daughter, or spouse) where the arrangement is entirely natural and there is no suggestion of impropriety. The certificate provider, whose role is to confirm the donor understands the LPA and is not under pressure, provides a safeguard here.
If the attorney is a professional (such as a solicitor acting as attorney), the costs of the LPA would typically come from the donor's funds rather than the professional's own pocket.
Employer and Workplace Schemes
Some employers offer LPA preparation as part of their employee benefits package, particularly for senior staff. This is becoming more common as employers recognise the value of helping staff plan for the future. Benefits may include:
- Access to a group legal services scheme that covers LPA preparation at no cost to the employee
- A legal advice helpline through an Employee Assistance Programme (EAP) that includes LPA guidance
- Discounted rates with partner solicitors or LPA services
- A one-off allowance or reimbursement for estate planning costs including LPAs
It is worth checking with your HR department or employee benefits provider whether any LPA-related support is available. Even if full preparation is not covered, you may find that advice or guidance is included in your benefits.
Trade Union and Professional Body Benefits
Some trade unions and professional membership bodies offer legal services to members at reduced rates. This can include LPA preparation. Check with your union or professional body to see if discounted LPA services are part of your membership benefits.
Are There Tax Implications When Paying for Someone Else's LPA?
The good news is that paying for someone else's LPA generally has no tax implications for either party. LPA costs are considered a personal expense, not a gift for tax purposes (given the relatively modest amounts involved). Specifically:
- No income tax — Paying for a family member's LPA does not create any income tax liability for either party.
- No inheritance tax concerns — The amounts involved in LPA costs (typically under £1,000 even for a solicitor) fall well within the annual gift exemption of £3,000 per person per tax year.
- No capital gains tax — Paying someone's legal fees does not trigger any capital gains liability.
That said, if you are paying for the LPA as part of a larger financial arrangement — for example, alongside significant gifts or transfers of property — it is worth discussing the overall picture with a financial advisor to ensure there are no unexpected tax consequences.
What If the Donor Cannot Afford to Pay?
If cost is a barrier, there are several options to consider:
- Fee exemption or reduction — If the donor is on a low income or receives means-tested benefits, the £92 registration fee may be reduced to £46 or waived entirely. See our guide on LPA fee reductions and exemptions.
- Use an affordable online service — UKLPA charges just £89 per LPA on top of the £92 registration fee, making the total £181 — far less than the £300–£1,000+ that solicitors typically charge. See our guide on the government LPA registration fee for more details.
- Family contributions — As discussed above, family members can share or cover the costs entirely.
Can You Reclaim LPA Costs from the Donor Later?
If someone other than the donor pays for the LPA upfront, there is no formal mechanism to reclaim this from the donor later. It is generally treated as a gift or family contribution.
However, once an LPA is registered and in use, reasonable costs incurred by the attorney in carrying out their duties can sometimes be reimbursed from the donor's funds. The initial creation cost, if paid by the attorney, could arguably fall into this category, but it is a grey area. If large sums are involved (for example, if a solicitor's fee was several hundred pounds), it is worth discussing this with a legal professional.
For a full breakdown of what you'll pay, see our LPA pricing page, or learn how our guided service works.
Key Takeaways
- The donor typically pays — the LPA is the donor's document, and they benefit most from having it in place
- Family members often cover the cost — adult children paying for their parents' LPAs is the most common arrangement after the donor paying themselves
- Fee reductions are based on the donor's income — earning under £12,000 per year may qualify for a 50% reduction; certain benefits may qualify for full exemption
- No tax implications for paying on someone's behalf — the amounts fall well within the £3,000 annual gift exemption
- Check employer benefits — some employers, trade unions, and professional bodies offer LPA preparation as part of their legal services package
LPA Costs: Answers to Key Questions
Can my children pay for my LPA?
Yes. There is no legal requirement for the donor to personally pay for the LPA. Adult children commonly arrange and pay for their parents' LPAs, and this has no effect on the validity of the document.
Are there any fee reductions for the LPA registration fee?
Yes. If the donor earns less than £12,000 a year, the £92 fee may be reduced to £46. If the donor receives certain means-tested benefits such as Universal Credit, the fee may be waived entirely.
Is there any tax on paying for someone else's LPA?
No. Paying for another person's LPA has no income tax, capital gains tax, or inheritance tax implications. The amounts involved are well within the annual gift exemption of £3,000 per person per tax year.
This guide was last reviewed and updated on . Information is based on current legislation and OPG guidance for England and Wales.
Official Guidance
Relevant government resources
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