Lasting powers of attorney vs deputyships: What happens if you can no longer make decisions?

Planning for the future is something many of us put off, but life is full of unpredictable changes. Making sure you protect yourself and your family in the event of such changes can help avoid a range of issues and challenges for all concerned.

As people live longer, conditions such as dementia, the after-effects of a stroke, Parkinson’s or serious accidents are becoming more common, and these can affect a person’s ability to manage their own affairs. If that happens, someone must be legally authorised to step in.

Understanding what a lasting power of attorney (LPA) is, why it matters, and how it compares to a Court of Protection deputyship can make a significant difference to you and your family.

What is a lasting power of attorney?

A lasting power of attorney (LPA) is a legal document that allows you, as the donor, to choose trusted people (your attorneys) to make decisions on your behalf if you lose mental capacity or need support managing your affairs.

It is only possible to make LPAs while you have the ability to understand what they are, how they can be used and who is the best person to appoint to help you if you become less able or unable to manage your own affairs.

By selecting your attorneys and defining their powers, you retain full control over how your affairs are managed:

• Your attorneys can act only within the powers you choose to give them.
• You remain in control for as long as you have mental capacity.
• An LPA is used only if and when it becomes necessary.

Types of LPA

A common misconception is that a single Lasting Power of Attorney gives an attorney authority over both finances and health. In fact, there are two different types of LPA – Property & Finance and Health & Welfare.

Creating both types of LPA ensures that all aspects of life are covered in the event of a loss of capacity, and it is possible to appoint different attorneys for each type, helping to distribute the responsibilities between those appointed.

Property and finance LPA

A property and financial affairs LPA enables your chosen attorneys to manage practical matters such as:

• Paying bills
• Running bank accounts
• Buying essential items
• Managing investments
• Selling property (if ever required)

It’s a common concern for those making these LPAs that signing a financial LPA hands over control immediately. However, this could not be further from the truth. In reality, you as the donor, retain full decision-making powers while you have capacity. Your attorneys act only at your request or at the point that mental capacity is officially lost.

This type of LPA is particularly helpful if mobility becomes difficult or health issues make day-to-day financial tasks harder. It ensures continuity and avoids disruption to your financial management.

Health and welfare LPA

A health and welfare LPA gives your attorneys authority to make decisions about:

• Medical treatment
• Medication
• Surgery
• Care arrangements
• Where you live

Unlike a financial LPA, a health and welfare LPA can only be used if you lose the ability to make the relevant decisions yourself.

This might be temporary, for example, if you are unconscious or under general anaesthetic, or it could be permanent, for example, if you develop dementia. Appointing people that you trust, whether they are family members, friends or professionals legally empowered to act for you, gives you the peace of mind of knowing that if you do lose the ability to make your own decisions, your chosen people can make the decisions in your place.

The Office of the Public Guardian recommends putting both types of LPA in place to ensure full protection.

What are the charges related to an LPA?

This is a one-off cost, and there are no ongoing annual fees.

All LPAs must be registered at the Office of the Public Guardian to become valid for use. They make a charge of £92 for each LPA, and this is payable in addition to the cost of preparation of the LPAs.

How long does an LPA last, and can it be changed?

Once registered and processed, typically around 14 weeks, your LPAs will stay in place for life. As previously explained, this does not mean that powers are automatically transferred to your attorneys, but the LPAs are there to be activated if and when you give the attorney with permission or that you have lost mental capacity and cannot make the decision yourself.

When is a Court of Protection deputyship needed?

If a person loses capacity without having made an LPA, their family cannot legally access their finances or make decisions for them.

In that situation, an application must be made to the Court of Protection, asking the court to appoint a deputy. The deputy may be a family member, a friend, or a professional.

Key points about deputyship:

• Capacity must be formally assessed by a medical professional, and fees will be payable to the doctor or psychiatrist.
• The application process is more complex, more expensive and can take up to a year before the Order for deputyship is granted. The fee for the application is currently £421 payable to the Court.
• Until the order is made, no one has legal authority to pay bills or make decisions, which can cause significant difficulties.
• Deputies must file detailed annual reports, maintain clear financial records, and take out compulsory insurance.
• There are ongoing annual fees, unlike LPAs.

Deputyship provides an important safety net, but in most cases, it is far better to choose your own attorneys in advance rather than leave the courts to decide on your behalf.

LPA vs deputyship: A direct comparison?

While both systems ultimately protect vulnerable individuals, the differences are clear:

In almost all cases, making LPAs early is the simpler, faster and more cost-effective approach. It ensures that the people you trust are able to support you if the unexpected happens.