A power of attorney allows one person — the donor — to authorise another person — the attorney — to act on their behalf. Two questions come up regularly when people begin planning their affairs: what's the difference between a General Power of Attorney and a Lasting Power of Attorney, and which one do they actually need?
They're often discussed together, but they serve distinct purposes and operate in fundamentally different ways. Getting this wrong isn't just an administrative inconvenience — it can leave you completely unprotected at exactly the moment you need cover most.
General Powers of Attorney
A General Power of Attorney (GPA) — sometimes called an "ordinary" power of attorney — is governed by the Powers of Attorney Act 1971. It allows a donor to appoint an attorney to deal with their property and financial affairs, either broadly or for a specific, limited purpose.
When is a GPA used?
GPAs are typically short-term arrangements, put in place for practical reasons when the donor is temporarily unable to attend to matters personally. Common scenarios include:
- Extended travel or time spent abroad
- Hospital treatment or reduced mobility
- Assistance with a particular transaction, such as a house sale
- Business convenience — where a trusted attorney handles routine financial administration
The authority granted can be wide — covering all financial affairs — or narrow, limited to a single task. Attorneys operating under a GPA can typically manage bank accounts, pay bills, deal with investment providers, sign documents, and handle general financial administration.
A General Power of Attorney only remains effective while the donor has mental capacity. If the donor loses capacity for any reason, the GPA ends automatically — regardless of what it says. It is not a substitute for an LPA and provides no long-term protection.
Lasting Powers of Attorney
A Lasting Power of Attorney (LPA) was created under the Mental Capacity Act 2005, and its defining feature is the one thing a GPA cannot offer: it continues to be effective even after the donor has lost mental capacity.
There are two distinct types of LPA, and they cover very different ground:
1. Property and Financial Affairs LPA
Covers financial matters — bank accounts, investments, bills, pensions, and property transactions. With the donor's permission, it can be used before capacity is lost, making it a practical tool even in good health.
2. Health and Welfare LPA
Allows attorneys to make decisions about care arrangements, medical treatment, and where the donor lives. If specifically authorised, this can extend to decisions about life-sustaining treatment. This type can only be used once the donor has lost capacity — it cannot be used while they are still able to make their own decisions.
Important: Registration is mandatory
Unlike a GPA, an LPA must be registered with the Office of the Public Guardian (OPG) before it can be used. This takes time — sometimes several months — so creating your LPA well in advance of when you might need it is essential.
Key Differences at a Glance
| Feature | General Power of Attorney | Lasting Power of Attorney |
|---|---|---|
| If capacity is lost | Ends automatically | Specifically designed to continue |
| Scope | Property & financial affairs only | Financial affairs and/or health & welfare |
| Registration | Not required | Mandatory — must be registered before use |
| Formality | Relatively straightforward | Highly formal — requires a certificate provider |
| Best suited for | Short-term, practical arrangements | Long-term protection and later-life planning |
| Can be used while donor has capacity? | Yes | Financial: yes. Health & Welfare: no |
Which One Do You Actually Need?
Consider a GPA if you need to…
- Travel abroad for an extended period
- Handle a specific transaction (e.g. a property sale)
- Cover a period of reduced mobility or hospital treatment
- Bridge the gap while an LPA is being registered
You need an LPA if you want to…
- Plan for the possibility of losing mental capacity
- Protect your affairs following a diagnosis
- Choose who makes decisions about your healthcare
- Avoid costly Court of Protection proceedings
A GPA is sometimes used while a Property and Financial Affairs LPA is awaiting OPG registration — to keep financial affairs moving in the meantime. However, if the donor loses capacity before the LPA is registered, the GPA will end automatically and neither document will be usable. This is why early planning matters.
What Happens Without an LPA?
If you lose mental capacity without a registered LPA in place, no one — not even your spouse or closest family member — has automatic legal authority to manage your affairs or make decisions about your care.
In that situation, family members would need to apply to the Court of Protection for a deputyship order. This process is significantly more expensive, time-consuming, and stressful than setting up an LPA in advance — and the court, not your family, ultimately decides who is appointed.
In Summary
The distinction between these two documents comes down to one thing: how long the authority is intended to last.
A GPA is a practical tool for short-term financial arrangements while you retain capacity. An LPA is the appropriate document wherever long-term protection is needed — particularly for later-life planning or following any diagnosis that may affect capacity in the future.
For most people, an LPA isn't something to consider "someday." It's something to put in place before it's needed — because once capacity is lost, it's too late to create one.
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