Property & Financial Affairs LPA

What is a Property and Financial Affairs LPA?

A Property and Financial Affairs LPA gives your chosen attorneys the legal authority to manage your money, property, and financial matters. This is often the most commonly used type of LPA because it covers the practical day-to-day financial decisions we all need to make.

What Decisions Does It Cover?

Your attorneys can help you with a wide range of financial matters:

Banking and Finances

Operating your bank accounts
Paying bills and managing direct debits
Managing savings and investments
Dealing with your pension
Filing tax returns
Claiming benefits and allowances

Property

Buying, selling, or letting property
Managing rental properties
Paying mortgage and household bills
Arranging repairs and maintenance
Dealing with tenants

Other Matters

Running a business on your behalf
Managing insurance policies
Dealing with your employer
Making gifts on your behalf (within limits)

When Can It Be Used?

Unlike a Health and Welfare LPA, a Property and Financial Affairs LPA can be used in two situations:

1. While You Have Capacity

You can authorise your attorneys to act on your behalf even while you are still able to make your own decisions. This is useful if:

You travel frequently and need someone to manage bills
You find managing finances difficult or stressful
You have mobility issues that make banking difficult
You want to gradually hand over financial management

Important: Your attorneys must always follow your instructions while you have capacity.

2. If You Lose Capacity

If you lose the mental capacity to make financial decisions (due to dementia, stroke, or other conditions), your attorneys can take over completely. They must act in your best interests.

Key Features and Options

Preferences and Instructions

You can add:

Preferences: Guidance your attorneys should follow where possible
Instructions: Binding rules your attorneys must follow

Examples include:

"I would like to continue supporting my usual charities"
"My attorneys must consult my accountant before making investment decisions"
"Gifts to family members must not exceed £500 per year each"

When Attorneys Can Act

You can choose whether your attorneys can act:

As soon as the LPA is registered: Gives flexibility to help you now
Only when you lack capacity: Keeps full control until needed

Safeguards and Protections

The LPA includes several protections:

Attorneys must always act in your best interests
They cannot give away your assets unless you have authorised gifts
They must keep your money separate from their own
They must keep accurate accounts
The Office of the Public Guardian can investigate concerns
Anyone can report suspected abuse or misuse

What Attorneys Cannot Do

Even with a Property and Financial Affairs LPA, attorneys cannot:

Make decisions about your health or care (that requires a separate LPA)
Make or change your Will
Vote on your behalf
Benefit themselves (except for reasonable expenses)
Delegate their role to someone else

Practical Considerations

Notifying Banks and Institutions

Once your LPA is registered, you should:

Send certified copies to your bank(s)
Inform your building society, pension provider, and HMRC
Notify any financial advisers or accountants

Joint Accounts

If you have joint bank accounts, your co-account holder can usually continue to manage these without needing the LPA. However, it is still useful to have the LPA in case the other account holder is unavailable.

Why You Should Not Delay

Creating a Property and Financial Affairs LPA while you are healthy means:

You can take your time choosing the right attorneys
You can register it so it is ready when needed
You avoid the stress and cost of Court of Protection if something happens suddenly
Your family has peace of mind knowing they can help if needed