Power of attorney and care homes: what you need to know

A Lasting Power of Attorney (LPA) is one of the most important legal documents a family can have in place before a loved one moves into a care home — or before they lose the mental capacity to make their own decisions. Many families discover too late that they don't have one.

What is a Lasting Power of Attorney?

An LPA is a legal document that allows a person (the “donor”) to appoint one or more people (the “attorneys”) to make decisions on their behalf if they can no longer do so themselves. There are two types:

• Property and Financial Affairs LPA: Covers bank accounts, investments, paying bills, and selling property — including paying care home fees.
• Health and Welfare LPA: Covers medical decisions, care home placement, and day-to-day welfare — including refusing or consenting to treatment.

Both types must be registered with the Office of the Public Guardian (OPG) before they can be used.

Why it matters for care homes

• Care homes will ask for proof of who can sign financial agreements on a resident's behalf
• Without an LPA, family members cannot access bank accounts to pay fees
• Health decisions (e.g. do not resuscitate, hospital transfer) require a Health LPA or court-appointed deputy
• Without an LPA, families must apply to the Court of Protection for a deputyship — which costs thousands of pounds and can take over a year

When must an LPA be set up?

An LPA can only be set up while the donor has mental capacity — that is, while they can still understand what they're agreeing to. Once a person lacks capacity, it is too late. This is why it is so important to act early, ideally while the person is still in good health.

How to set up an LPA

• Use the Government's online service at gov.uk/power-of-attorney
• Or instruct a solicitor — useful for complex family situations
• The cost is £82 per LPA to register (reduced or waived for low incomes)
• The process typically takes 8–20 weeks from application to registration
• Both LPAs (financial and health) need to be set up separately

What if there is no LPA?

If a person loses capacity without an LPA in place, family members must apply to the Court of Protection for a Deputyship Order. This is significantly more expensive (£3,000–£5,000+), slower (12–18 months), and requires ongoing annual reporting. It can be avoided entirely by putting an LPA in place now.