Property and Financial Affairs LPA: Complete Guide

A Property and Financial Affairs LPA is arguably the most practical document you can have. It ensures someone you trust can manage your money, pay your bills, and deal with your property if you ever become unable to do so yourself.

Without one, your family could face months of delays and thousands in costs just to access your bank accounts. Let me explain exactly how this LPA works and how to set it up properly.

What is a Property and Financial Affairs LPA?

A Property and Financial Affairs Lasting Power of Attorney is a legal document that lets you appoint someone to handle your financial matters if you become unable to manage them yourself.

Unlike a Health and Welfare LPA, this type can optionally be used while you still have mental capacity. You can allow your attorney to help with your finances even when you're perfectly well – useful if you want assistance with complex matters or if you're abroad for extended periods.

What Does It Cover?

Your attorney can make decisions about:

Banking and everyday finances:

• Managing bank accounts and savings
• Paying bills and standing orders
• Receiving income (pension, benefits, rent)
• Making purchases on your behalf

Property:

• Paying mortgage or rent
• Maintaining your home
• Selling property
• Buying property
• Letting out property

Investments and pensions:

• Managing investments and ISAs
• Dealing with stockbrokers
• Claiming pension and annuities
• Making investment decisions

Business matters:

• Running your business
• Signing contracts
• Dealing with business accounts

Tax and legal:

• Completing tax returns
• Dealing with HMRC
• Hiring solicitors or accountants
• Managing legal claims

What it doesn't cover:

• Making a will for you
• Health and care decisions (that's the other LPA)
• Gifts to themselves (beyond reasonable presents)

When Can It Be Used?

This is where the Property and Financial LPA differs from Health and Welfare.

You have a choice:

• From registration: Your attorney can use it as soon as it's registered, even while you have full capacity
• Only on loss of capacity: Your attorney can only use it once you've lost mental capacity

Why allow use while you have capacity?

• You're abroad for extended periods
• You find financial admin difficult or stressful
• You want to gradually hand over control as you age
• It makes the transition smoother if you do lose capacity

Why restrict to loss of capacity only?

• You want to maintain full control for as long as possible
• You're concerned about potential misuse
• You prefer to manage your own affairs

Even if you allow use from registration, you remain in control while you have capacity. Your attorney's authority doesn't override yours – they can only help, not take over.

Choosing Your Attorney

For financial matters, your attorney should be:

Trustworthy:

• Completely honest and reliable
• Someone with no financial difficulties of their own
• Not someone who might benefit from misusing your money

Financially competent:

• Good with money and paperwork
• Organised and methodical
• Comfortable dealing with banks and institutions

Available:

• Has time to manage your affairs
• Lives close enough to attend to practical matters
• Likely to be around when needed

Common choices include spouses, adult children, or siblings. You might choose different people for your Property and Financial LPA than for your Health and Welfare LPA – someone good with money might not be the best person for healthcare decisions.

Multiple Attorneys and How They Act

You can appoint multiple attorneys to share or check each other's work:

Jointly: All attorneys must agree on every decision. Provides maximum protection against misuse but can be impractical for everyday banking.

Jointly and severally: Attorneys can act together or independently. More flexible and practical for most situations.

Jointly for some, severally for others: You specify which decisions need everyone (selling the house) and which can be made alone (day-to-day banking).

Many people choose jointly and severally for flexibility, but require joint decisions for major matters like property sales through instructions in the LPA.

Built-in Safeguards

LPAs have several safeguards against misuse:

Certificate provider: An independent person confirms you understand the LPA and aren't being pressured.

People to notify: You can name people who will be told when the LPA is registered, giving them a chance to object.

Instructions and preferences: You can include specific rules your attorney must follow.

OPG oversight: The Office of the Public Guardian registers LPAs and can investigate concerns about attorneys.

Bank monitoring: Banks may query unusual transactions even when an LPA is in place.

Banking and Your LPA

Once your LPA is registered, your attorney can use it with banks. Here's what to expect:

Registration with banks:

• Each bank needs to see the original LPA (or a certified copy)
• They'll set up your attorney as an authorised person
• This can take 2-4 weeks per bank

What attorneys can do:

• Operate accounts on your behalf
• View statements and balances
• Make payments and transfers
• Manage direct debits

What banks may question:

• Large unusual withdrawals
• Transfers to the attorney's own accounts
• Payments that seem outside your interests

Register your LPA with your banks before you need it. Don't wait until a crisis – the registration process takes time.

Common Concerns

"What if my attorney steals my money?"

Choose someone trustworthy. Appoint multiple attorneys for major decisions. Include people to notify. Keep statements accessible to family. The OPG investigates concerns and can remove attorneys who act improperly. Attorneys who abuse their position can face criminal prosecution.

"Can I change my mind after making an LPA?"

Yes, as long as you have mental capacity. You can revoke the LPA entirely, or change your attorneys by creating a new LPA.

"What if my situation changes?"

Review your LPA when circumstances change significantly. If your chosen attorney is no longer suitable, make a new LPA while you still can.

"What happens to my LPA when I die?"

The LPA ends at your death. Your executor then takes over managing your estate through probate. The two roles are different – attorney (while alive) and executor (after death).