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Health vs Financial LPA: Do You Need Both?

7 min11 Jan 2026

Health and Welfare LPA vs Property and Financial LPA: What's the Difference?

One of the most common mistakes people make is assuming one LPA covers everything. It doesn't. If you only set up a Property and Financial Affairs LPA, your attorneys can manage your money but have no authority over your medical care. If you only have a Health and Welfare LPA, your attorneys can make care decisions but cannot access your bank account to pay for that care.

Understanding the difference - and why you likely need both - is essential for proper planning.

Table of Contents

The Two Types Explained {#types-explained}

In England and Wales, there are exactly two types of Lasting Power of Attorney, governed by the Mental Capacity Act 2005:

  1. Property and Financial Affairs LPA
  2. Health and Welfare LPA

Each type is a separate legal document that must be completed, signed, and registered independently. You cannot combine them into one form, and you pay the £82 registration fee for each.

They serve different purposes and work in different ways. Understanding these differences helps you make informed decisions about your planning.

Property and Financial Affairs LPA {#property-financial}

This LPA gives your attorney(s) the legal authority to manage your financial and property matters.

What It Covers

Banking and Money:

  • Accessing and operating your bank accounts
  • Moving money between accounts
  • Setting up or cancelling direct debits
  • Making investments
  • Managing savings

Property:

  • Selling or renting out your home
  • Managing rental properties
  • Paying mortgage or rent
  • Dealing with property maintenance
  • Buying property on your behalf

Bills and Finances:

  • Paying utility bills
  • Managing insurance policies
  • Handling council tax
  • Filing tax returns
  • Claiming benefits and pensions

Business Interests:

  • Managing business affairs
  • Signing contracts
  • Making business decisions

When It Can Be Used

This is where the Property and Financial Affairs LPA is unique. It can be used:

  • As soon as it's registered - Your attorney can help with finances while you still have mental capacity (with your permission)
  • When you lose capacity - Your attorney can act on your behalf without needing your involvement

When creating the LPA, you can choose which option applies. Many people allow their attorney to act immediately so a spouse or trusted person can help manage finances if they become ill, busy, or simply prefer to delegate.

Example Scenario

David has early-stage dementia. His Property and Financial Affairs LPA means his wife Sarah can:

  • Access their joint and David's sole bank accounts
  • Pay the household bills
  • Manage David's pension
  • Eventually sell their house to fund care if needed
  • Handle all financial correspondence

Without this LPA, Sarah would have no legal right to access David's sole accounts, even as his wife.

Health and Welfare LPA {#health-welfare}

This LPA gives your attorney(s) the legal authority to make decisions about your personal welfare, including medical treatment.

What It Covers

Medical Treatment:

  • Consenting to or refusing medical treatment
  • Choosing between treatment options
  • Deciding about surgery or procedures
  • Managing ongoing health conditions

Care Arrangements:

  • Where you live (home, care home, with family)
  • What type of care you receive
  • Who provides your care
  • Daily care routines

Daily Life:

  • What you eat and drink
  • What you wear
  • Personal hygiene
  • Social activities
  • Who visits you

Life-Sustaining Treatment (Optional):

  • If you specifically grant this authority, your attorneys can make decisions about treatment that keeps you alive
  • This includes decisions about artificial nutrition, hydration, and ventilation
  • If you don't grant this authority, medical professionals make these decisions

When It Can Be Used

Critical difference: A Health and Welfare LPA can only be used when you lack the mental capacity to make a specific decision yourself.

While you can still make your own decisions about your health and welfare, your attorneys have no authority to act. They can only step in when a doctor or other professional confirms that you cannot make a particular decision.

This protects your right to make your own choices about your body and life for as long as you're able.

Example Scenario

Margaret has had a stroke and cannot communicate or understand treatment options. Her Health and Welfare LPA means her son James can:

  • Consent to surgery recommended by doctors
  • Discuss her care plan with the hospital
  • Decide whether she goes home or to a rehabilitation unit
  • Make decisions about ongoing therapy
  • Ensure she receives the care she would want

If Margaret had granted authority over life-sustaining treatment, James could also make decisions about whether to continue life support if the situation arose.

Key Differences {#key-differences}

Why You Need Both {#why-both}

Having only one type of LPA leaves significant gaps.

With Only a Property and Financial Affairs LPA

Your attorneys CAN:

  • Pay care home fees
  • Manage your finances
  • Sell your home
  • Handle your investments

Your attorneys CANNOT:

  • Discuss your care with medical staff
  • Consent to medical treatment
  • Choose where you live
  • Make decisions about your daily care
  • Refuse treatment on your behalf

With Only a Health and Welfare LPA

Your attorneys CAN:

  • Make medical decisions
  • Choose your care arrangements
  • Discuss treatment with doctors
  • Manage your daily welfare

Your attorneys CANNOT:

  • Access your bank accounts
  • Pay your bills
  • Sell your property
  • Use your money to pay for care
  • Manage your pension

The Practical Problem

When someone loses capacity, they typically need help with both finances and welfare simultaneously. Having only one type creates impossible situations.

Real example: Your Health and Welfare attorney decides you need residential care, but your Property and Financial attorney is the only one who can access your money to pay for it. If they're different people who don't communicate well, or if the financial attorney dies, the whole arrangement breaks down.

Most importantly: if you only have one type and need the other, your family must go through the expensive, lengthy Court of Protection process to get deputyship for the missing type.

Can You Have Different Attorneys? {#different-attorneys}

Yes. You can appoint different people as attorneys for each type of LPA.

When This Makes Sense

Property and Financial Affairs:

  • Someone financially savvy
  • A person who understands investments and property
  • Someone geographically close enough to manage practical matters
  • A professional (accountant, solicitor) for complex estates

Health and Welfare:

  • Someone who knows you intimately
  • A person who understands your values and wishes
  • Someone emotionally capable of making difficult decisions
  • A family member who can attend appointments and advocate for you

Example Setup

Tom, aged 55, appoints:

  • Property and Financial Affairs: His wife Jane and his accountant (jointly and severally)
  • Health and Welfare: His wife Jane and his sister Rachel (jointly for major decisions)

This means:

  • Either Jane or the accountant can handle finances
  • For major health decisions, both Jane and Rachel must agree
  • If Jane becomes unavailable, appropriate people are in place for both types

Considerations

If you appoint different attorneys for each type:

  • They should communicate with each other
  • They should understand each other's authority and limitations
  • You should explain your reasoning to all of them
  • Consider what happens if one becomes unavailable

Which Should You Set Up First? {#which-first}

Ideally, set up both at the same time. The cost is £82 per LPA regardless of when you do them, and doing both together means:

  • One set of signatures to arrange
  • One certificate provider conversation
  • One registration wait period
  • Complete protection from the start

If you absolutely must choose one to do first:

Prioritise Property and Financial Affairs If:

  • You have complex finances or property
  • You're self-employed or run a business
  • You want your spouse to manage finances if you're ill
  • You're concerned about ongoing financial management

Reasoning: This LPA can be used as soon as registered, even while you have capacity. It provides immediate practical value.

Prioritise Health and Welfare If:

  • You have specific wishes about medical treatment
  • You have strong preferences about end-of-life care
  • You want to ensure certain people cannot make health decisions for you
  • You have concerns about care quality

Reasoning: This LPA protects your most personal decisions about your body and life.

Best advice: Don't choose. The £164 for both LPAs is far less than the stress and cost of not having complete coverage. Do both now.

Frequently Asked Questions {#faq}

Key Takeaways

  • Two separate documents: Property & Financial LPA and Health & Welfare LPA cover completely different decisions
  • Both are needed: Having only one type leaves dangerous gaps in your protection
  • Different activation: Financial LPA can work while you have capacity; Health LPA only works when you lack capacity
  • Same or different attorneys: You choose who acts for each - can be the same person or different people
  • £82 each: Registration costs £164 total for complete coverage

Next Steps {#next-steps}

Related Guides:

Last updated: January 2026. This guide is for informational purposes only and does not constitute legal or financial advice. Laws and figures are specific to England and Wales. Scotland uses Continuing Powers of Attorney and Welfare Powers of Attorney. Northern Ireland uses Enduring Powers of Attorney.

Last updated: 11 January 2026