April 16, 2025
reading time: 4 min
How much does a Lasting Power of Attorney cost?
April 16, 2025
reading time: 4 min
How much does a Lasting Power of Attorney cost?
How much does a Lasting Power of Attorney cost? - The real cost of not having LPAs
Although more people in the UK are creating and registering Lasting Powers of Attorney (LPAs), there is still a large majority of people who haven't done so. This highlights that while awareness is growing, a significant percentage of the population still lack registered LPAs.
This brings potential risks, such as individuals not having someone legally appointed to manage their affairs if they lose mental capacity in the future.
A recent survey carried out by Canada Life in the UK identified that 78% of UK adults, including 77% of those over 55, do not have registered LPAs. At the same time in the UK, many senior people face situations of managing their affairs in case of illness, mental diseases and other challenging life situations. One of the most important legal documents in such situations is the Lasting Power of Attorney (LPA). Having LPAs in place enables trusted people to act on your behalf, if you are unable to do so. It is easy to understand the importance of having LPAs when considering the challenges that could arise without an LPA.
What happens if you do not have Lasting Powers of Attorney?
A lack of a Lasting Power of Attorney can lead to serious legal and financial problems. These are the issues that are the most frequently encountered:
1. Appointment of a deputy by the court.
If a person loses capacity and has no LPA in place the alternative is a Deputyship. The Court of Protection decides who can act on a person's behalf. In other words, act as a deputy. There are two types of deputies: Property and Financial Affairs deputy and Health and Welfare deputy. However, the appointment process through the court is both time and money consuming. It could take several months and, in some cases, even longer. During that period family members or trusted people will not have the power to managing affairs (for example: paying the bills, claiming benefits or pensions).
2. Family disputes.
Without an LPA with your chosen attorneys, conflicts may arise among the family. There may be disputes between family members over who should make decisions, which can lead to lengthy litigation and tensions.
3. Additional expenses
Without a Lasting Power of Attorney, the process can be both emotionally challenging and financially costly. Court costs, solicitor’s fees and the time it takes to resolve the situation will significantly exceed the cost of drawing up an LPA.
Lasting Power of Attorney summary
There are two different types of Lasting Power of Attorney (LPA); Property & Financial Affairs and Health & Welfare. You can choose whether to have just one type or both types of LPA.
Property and Financial Affairs LPA covers such matters as opening, closing and using bank accounts, claiming benefits, pensions and allowances, paying household bills, dealing with utility companies, etc. The donor (the person who gives the power to act on their behalf) can choose whether this LPA comes into effect whilst they still have capacity, i.e. to help with everyday tasks should they require it, or to limit the LPA to only be used when the donor has lost mental capacity.
Lasting Power of Attorney for Health & Welfare covers such matters as where the donor lives, giving or refusing consent to final life decisions, health care, matters such as diet, dress or daily routine etc. With this LPA, the attorneys only have the power to make decisions when the donor has lost mental capacity and not before.
How much does the Lasting Power of Attorney cost?
The fee involved in setting up a Lasting Power of Attorney consists of 2 main components: the Office of the Public Guardian (OPG) fee and the cost to prepare the LPA. The Office of the Public Guardian is a government body responsible for protecting people who may lack mental capacity. Their key responsibilities include managing Lasting Powers of Attorney (LPAs). The current OPG LPA fee is £82 per power. Please note that effective from 17 November 2025 the fee will increase from £82 per LPA application to £92. The new fee will be payable for LPA applications received by the Office of the Public Guardian (OPG) from 17 November 2025 (Subject to parliamentary approval).
It is possible to apply for a remission of the fee if the person individually earns less than a certain amount per annum. Evidence of income is required, such as copies of pension letters from the DWP showing allowance. Certain benefits may allow for a full exemption of the fee. The LPAs cost can vary depending on whether you would like to use DIY templates or professional help. Average solicitor’s fees range from £200 to £800.
Can I create my Lasting Power of Attorney without a solicitor?
Using online services, or without the advice of a regulated professional, may seem like a cost-effective way of drafting your LPAs. Lasting Powers of Attorney can be complex and in the 2023-2024 period over 50,000 applications were rejected by the OPG for poor completion, such as incorrect or incomplete forms, dates out of sequence, etc. These errors can result in significant delays and additional fees.
Conclusion
The lack of awareness, misconceptions and procrastination are the biggest reasons why most do not have an LPA. However, not having one can cause significant legal and financial difficulties for families if someone loses mental capacity. A Lasting Power of Attorney is a crucial document to protect your interests if you are unable to due to illness or other life situations. The cost of an LPA is relatively low compared to the problems and expenses that may arise if a Power of Attorney is not in place.
If you haven’t already set up a Lasting Power of Attorney, consider doing so as soon as possible. There are simple and affordable ways to set one up and having one will give you peace of mind that your affairs will be in good hands, even in difficult times.
At Westminster Law we have created a tailor-made process which includes home visits and special prices. Our expert team at Westminster Law can help you make an LPA.
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