Property vs Health LPA: Key Differences
This guide covers Lasting Powers of Attorney in England and Wales only. Scotland and Northern Ireland have separate systems.
Most people know they need a Lasting Power of Attorney — but many don't realise there are two completely different types, covering two completely different areas of your life. Getting only one and missing the other can leave serious gaps in your protection.
Here's exactly what each LPA covers, how they differ, and why most people in England and Wales need both. GOV.UK outlines the two types of Lasting Power of Attorney in England and Wales.
The Essential Difference
Property and Financial Affairs LPAs cover money and property decisions. Health and Welfare LPAs cover medical treatment and care decisions. They are completely separate legal documents.
Neither can substitute for the other. An attorney with a financial LPA cannot make healthcare decisions. An attorney with a health LPA cannot access your bank account to pay your care home fees. These LPAs do not overlap. Each one serves a specific purpose. For more background, see our complete guide to Lasting Power of Attorney.
Property and Financial Affairs LPA — What It Covers
The Property and Financial Affairs LPA covers financial matters: managing your bank accounts and investments, paying your bills, collecting your income and benefits, selling or renting out your property, and handling business matters.
In practical terms, your attorney can:
- Access and manage your bank and savings accounts
- Pay your mortgage, rent, utility bills, and other outgoings
- Collect your pension, benefits, and other income
- Buy or sell property on your behalf
- Manage investments and financial assets
- Handle tax affairs and deal with financial institutions
When Can It Be Used?
This is a key distinction that many people miss. Uniquely, this LPA can be used while you still have capacity if you choose to set it up that way — for example, if you are abroad and need someone to handle UK finances on your behalf.
You can specify in the LPA whether your attorney can act immediately upon registration, or only when you have lost capacity. Most people allow immediate use — it gives flexibility without giving up control.
Health and Welfare LPA — What It Covers
A Health and Welfare LPA allows your attorney to make decisions regarding your daily care, medical treatment, and living arrangements when you are unable to do so yourself.
Your attorney can make decisions about:
- Where you live — including whether you move into a care home
- Your daily routine — washing, dressing, eating, and activities
- Medical treatment — including consenting to or refusing treatment on your behalf
- Who has contact with you
- Life-sustaining treatment — if you specifically authorise this in the LPA
When Can It Be Used?
Unlike the Property LPA, a Health and Welfare LPA can only be used when you have lost mental capacity — it cannot be used while you still have capacity to make these decisions yourself.
This means your attorney cannot interfere with your healthcare decisions while you are able to make them. The LPA activates only when it is genuinely needed.
Side-by-Side Comparison
| Property & Financial Affairs | Health & Welfare | |
|---|---|---|
| Covers | Money, property, finances | Care, treatment, daily living |
| When it activates | On registration (if permitted) or on loss of capacity | Only on loss of capacity |
| Can pay bills | ✅ Yes | ❌ No |
| Can manage bank accounts | ✅ Yes | ❌ No |
| Can decide care home placement | ❌ No | ✅ Yes |
| Can consent to medical treatment | ❌ No | ✅ Yes |
| Can cover life-sustaining treatment | ❌ No | ✅ Yes, if specifically authorised |
| Trust corporation can be attorney | ✅ Yes | ❌ No — must be an individual |
| Registration required before use | ✅ Yes | ✅ Yes |
| OPG registration fee | £92 | £92 |
Why Most People Need Both
Both are equally important — yet many people make one and forget the other.
Consider what happens when you have only one:
If you only have a Financial LPA:
Your attorney can pay your bills and manage your money — but has no legal authority over your medical care or where you live. Without a Health and Welfare LPA, even your closest family members may have little say in critical decisions about your life. Social services could decide where you live and what type of care you receive. Your next of kin may be consulted, but they won't have the final say on medical treatment.
If you only have a Health LPA:
If you only have a Health and Welfare LPA, your attorneys can choose your care home but can't pay the fees. They can consent to treatment but can't access funds to pay for private care. They can make daily care decisions but can't manage the money needed to implement them.
Only by having both LPAs can you be sure that all aspects of your life are protected. They give your family the ability to act quickly and compassionately without needing court intervention.
The Cost of Getting It Wrong
Without either LPA in place, your family faces the Court of Protection. The application fee alone is £371, and legal costs typically range from £3,000 to £10,000. Compare that to the total cost of both LPAs: £184 in registration fees alone.
Even setting up just one LPA and missing the other creates a gap that could force your family into exactly this situation.
Find out how much does an LPA cost in our full pricing breakdown.
Can You Have Different Attorneys for Each?
Yes — and this is more common than people realise. Both types of LPAs can work together, but it is vital to ensure clear communication between attorneys. This prevents conflicts and ensures your wishes are respected in all areas of your life.
Many people appoint:
- A financially experienced family member or spouse for the Property and Financial Affairs LPA
- A family member or close friend who understands their personal values and healthcare preferences for the Health and Welfare LPA
You can also appoint the same person for both — whatever best reflects your circumstances and trust.
Learn more about who can be an attorney on an LPA.
What About a Living Will — Is That the Same?
No. A living will, also known as an advance decision, allows you to record specific medical treatments you would refuse in certain circumstances. It differs from a Health and Welfare LPA because a living will sets out fixed instructions, while an LPA appoints a person to make decisions based on the situation at the time.
A living will and a Health and Welfare LPA can work together — the living will gives specific direction to doctors, while the LPA allows your attorney to interpret your broader wishes as circumstances change. They serve different purposes and are not interchangeable.
Setting Up Both at the Same Time
Setting up both LPAs together is strongly recommended — and a trusted power of attorney service in London or online can help you complete both efficiently. There are two key reasons:
Cost: Each LPA costs £92 to register with the OPG. Doing them together means one process, one set of documents to gather, and one conversation with your chosen attorneys — saving time even though the fee is the same per document.
Completeness: Many people choose to make a Property and Financial Affairs LPA first because it feels more practical — bills still need to be paid even if you are unwell. However, without a Health and Welfare LPA, your family may not have the legal authority to make decisions about your care.
Learn how to set up an LPA step by step.
Quick Decision Guide
You need a Property and Financial Affairs LPA if:
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- You want someone to manage your finances if you lose capacity
- You want flexibility for someone to help with finances while you still have capacity
- You have property, investments, pensions, or significant savings
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You need a Health and Welfare LPA if:
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- You want a trusted person — not social services or the courts — to make care decisions for you
- You have specific preferences about medical treatment or where you live
- You want someone you trust to make decisions about life-sustaining treatment
>
For most people: you need both.
*This article is for informational purposes only and does not constitute legal advice. This guide covers Lasting Powers of Attorney in England and Wales only. Scotland has a separate system — the Continuing Power of Attorney and Welfare Power of Attorney. Northern Ireland has Enduring Powers of Attorney under different legislation. For complex situations, we recommend seeking independent legal guidance.*
Start your LPA — you can set up both types in one session.
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This guide covers a property and financial LPA London residents can set up fully online. A health and welfare LPA UK lets your attorney make decisions about your care.
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