Posted: Wednesday, 7 January 2026 @ 13:24
As we move into 2026, the landscape for Lasting Powers of Attorney (LPAs) continues to evolve following significant reforms. For both advisors and clients, understanding these changes is crucial for effective estate planning. An LPA is no longer an optional extra—it's an essential component of comprehensive financial and personal protection.
⚠️ The Critical Truth About LPAs
You must have mental capacity to create an LPA. This is the single most important fact that every client needs to understand. Once capacity is lost, it's too late. This urgency makes LPAs arguably more important than a Will for lifetime protection.
Understanding the Two Types of LPA
💳 Property and Financial Affairs LPA
This allows your chosen attorney(s) to manage:
- Bank accounts and bill payments
- Property transactions (buying/selling)
- Investment management
- Business affairs
Key feature: Can be used immediately (with donor's consent) or only upon loss of capacity.
❤️ Health and Welfare LPA
This grants authority for decisions about:
- Daily care and routine
- Medical treatment
- Residential care choices
- Life-sustaining treatment (must be specifically authorised)
Key feature: Can only be used if the donor lacks capacity to make these specific decisions.
🚨 Without an LPA: The Court of Protection Alternative
If someone loses capacity without an LPA, their family must apply to the Court of Protection for deputyship. This process is:
- 5-10 times more expensive than setting up an LPA
- Much slower (typically 6-9 months)
- Less flexible – the court chooses who acts
- Ongoing supervision with annual reporting requirements
How to Appoint an Attorney: A Step-by-Step Guide
The 5-Step LPA Process
1. Choose Your Attorney(s)
Select trustworthy individuals who understand your values. Consider appointing more than one for shared responsibility.
2. Have Open Discussions
Explain your wishes and expectations clearly. Ensure they're willing and able to take on this responsibility.
3. Complete the Forms Correctly
Either use the government portal with extreme care or seek professional help. Mistakes cause rejection.
4. Certificate Provider Confirmation
Someone must confirm you understand the LPA and aren't under pressure. This can be a professional or someone who has known you for 2+ years.
5. Register with the OPG
The LPA must be registered with the Office of the Public Guardian before it can be used (currently takes 8-10 weeks).
💰 Recent Fee Changes to Note
As of November 2025, the application fee to register an LPA with the OPG increased from £82 to £92. While this represents a cost increase, it's minimal compared to the thousands required for a Court of Protection application.
Key Considerations for Choosing Attorneys
Trust and Integrity: The most important quality. Choose someone who will always act in your best interests.
Financial Acumen: For financial LPAs, select someone competent with money management.
Geographic Practicality: Consider whether they live close enough to manage your affairs practically.
Availability: Ensure they have the time and willingness to take on this responsibility.
Back-up Plans: Name replacement attorneys in case your first choice cannot act.
📋 Important Client Conversations
When advising clients about LPAs, ensure you cover:
- The difference between the two types of LPA
- The urgency of setting up LPAs before capacity becomes an issue
- The substantial cost and time savings versus Court of Protection applications
- How their attorney should make decisions (following their wishes vs. best interests)
- The importance of keeping LPAs updated with life changes
👨💼 Professional Guidance: Why It Matters
While clients can create LPAs independently using the government portal, professional guidance offers significant advantages:
Avoid Rejection: Approximately 20% of DIY applications are rejected due to errors
Personalised Advice: Tailored guidance on complex family situations or business interests
Future-Proofing: Advice on how LPAs interact with Wills, trusts, and care planning
Peace of Mind: Knowing documents are correctly completed and registered
⏳ Take Action in 2026
Don't let your clients—or yourself—fall into the "too late" category. LPAs are about maintaining control and protecting dignity during life's uncertainties.
The time to act is now, while capacity and choice are still available.
Disclaimer: This article provides general information about Lasting Powers of Attorney. The legal requirements and processes can be complex, and professional advice should be sought for individual circumstances. Recent reforms and fee changes should be verified with current government guidance.