What Power of Attorney Does Exactly: A Complete Guide for the UK
If you’re planning ahead for your future or helping a loved one, understanding what Power of Attorney does is essential. In the UK, a Power of Attorney (POA) gives someone the legal right to act on another person’s behalf. This can cover finances, property, or even healthcare decisions—depending on the type of POA you choose.
In this article, we’ll break down what Power of Attorney does, how it works in real life, and why it’s such an important tool in estate planning. Whether you’re thinking of setting one up for yourself or being appointed as someone else’s attorney, this guide will give you clarity and confidence.
Need help setting yours up? Book a free consultation with our experts.
What Is a Power of Attorney?
A Power of Attorney is a legal document that allows you (the “donor”) to appoint one or more trusted individuals (your “attorney(s)”) to make decisions and act on your behalf. This authority can be temporary or long-term and applies to a variety of personal matters, depending on the type of POA in place.
The role of the attorney is to act in the donor’s best interests. They may deal with financial institutions, property transactions, healthcare providers, and more—always within the powers granted to them.
What Does a Power of Attorney Do?
The duties of a POA depend on the type of Power of Attorney granted. Here are the key types used in the UK and what they allow your attorney to do:
1. Lasting Power of Attorney (LPA)
This is the most common and robust form. It continues even if the donor loses mental capacity and comes in two types:
- Property and Financial Affairs LPA – Enables attorneys to manage money, bills, pensions, bank accounts, and property.
- Health and Welfare LPA – Covers decisions about care, living arrangements, and medical treatment—but only when the donor no longer has capacity.
Learn more on our detailed LPA information page.
2. Ordinary Power of Attorney
Used for temporary needs, such as if the donor is abroad or recovering from illness. It only applies while the donor still has mental capacity.
It’s typically used for:
- Accessing and managing bank accounts
- Paying household bills
- Dealing with property sales or maintenance
3. Enduring Power of Attorney (EPA)
Replaced by the LPA system in 2007, but still valid if created before then. EPAs only cover financial matters and must be registered when the donor begins to lose mental capacity.
Examples of What Power of Attorney Does
✔ Managing Bank Accounts
Your attorney can speak with your bank, transfer funds, and set up standing orders to cover bills—especially helpful if you’re unwell or abroad.
✔ Selling or Renting Property
If you’re in hospital or living overseas, your attorney can liaise with estate agents, sign contracts, and complete transactions for your property.
✔ Making Health Decisions
If you lose mental capacity, your attorney (under a Health and Welfare LPA) can make decisions about your daily care, treatments, or even life-sustaining procedures—always based on your known preferences.
✔ Arranging Care Support
Your attorney can choose care homes, apply for funding, or coordinate personal care based on your best interests if you’re no longer able to do so.
✔ Handling Pensions or Benefits
Attorneys can claim state benefits on your behalf, liaise with the DWP, and manage any pension income you receive.
Legal Responsibilities of an Attorney
Attorneys have a legal duty to act in the donor’s best interests at all times. They must:
- Make decisions that align with the donor’s wishes and values
- Keep the donor’s finances separate from their own
- Keep accurate records of all transactions and decisions
- Follow the rules of the Mental Capacity Act 2005
They are not allowed to benefit personally unless explicitly authorised in the POA document.
When Does a Power of Attorney Take Effect?
Lasting Power of Attorney:
- Property & Financial Affairs LPA: Can be used as soon as it’s registered with the Office of the Public Guardian (OPG), even while the donor still has capacity—if permitted.
- Health & Welfare LPA: Only comes into effect once the donor has lost mental capacity.
Ordinary Power of Attorney:
Effective immediately upon signing and remains valid only while the donor retains mental capacity.
Enduring Power of Attorney:
Must be registered with the OPG once the donor begins to lose capacity.
When Should You Set Up a Power of Attorney?
The best time to create a Power of Attorney is before it’s needed. Once someone loses capacity, they can no longer make a POA—leaving their loved ones to apply to the Court of Protection instead, which is expensive and time-consuming.
By acting early, you remain in control of:
- Who you trust to act for you
- How and when they can act
- The scope of the decisions they can make
Need expert help? Book a free consultation with our estate planners and secure your peace of mind.
Who Should You Appoint as Your Attorney?
You should choose someone:
- You trust completely
- Who understands your values
- With the ability to handle financial or care responsibilities
- Who is over 18 and mentally capable
You can appoint more than one attorney and decide whether they act jointly or independently.
How Much Does Power of Attorney Cost?
The government registration fee is currently £82 per LPA. If you set up both a Property & Financial and Health & Welfare LPA, that’s £164 in total. Some people qualify for a fee reduction or exemption based on income.
View our pricing here to see how we can help you with fixed-fee, professionally prepared Power of Attorney packages.
FAQs: What Does Power of Attorney Do?
Can a POA make decisions about my house?
Yes, a Property and Financial Affairs LPA allows your attorney to buy, sell, or manage your property if needed.
Can my attorney decide where I live?
Only if you have a Health and Welfare LPA, and only if you’ve lost capacity. Your attorney could then choose a care home, for example.
Can my attorney access my bank accounts?
Yes—if they are appointed under a financial LPA or Ordinary POA. They can manage accounts, pay bills, and handle direct debits.
Is Power of Attorney still valid after death?
No. All POA authority ends when the donor dies. At that point, the executor of the will (not the attorney) takes over.
Can I cancel a Power of Attorney?
Yes. As long as you have mental capacity, you can revoke a POA at any time. Learn more in our guide on revoking Power of Attorney.
Conclusion
So, what does Power of Attorney do? In short, it gives someone the legal authority to help you manage your affairs when you can’t. It’s a powerful legal tool that protects your wellbeing, your finances, and your future—especially if you plan ahead.
Whether you’re appointing someone to make decisions or being appointed yourself, it’s vital to understand the responsibilities involved. If done correctly, a POA gives everyone peace of mind and ensures the donor’s wishes are respected—even in challenging times.
Book your free consultation today and let our team help you put the right plan in place.
For clear, fixed-cost services, visit our pricing page.
Want to explore official guidance? Visit the UK Government’s Power of Attorney page for additional resources.