LPA vs Deputyship UK (2026): Lasting Power of Attorney vs Court of Protection — What's the Difference?

Both an LPA and a deputyship allow someone to manage the affairs of a person who has lost, or is losing, mental capacity — but they arise in fundamentally different ways and carry very different costs, powers, and administrative burdens: (1) LASTING POWER OF ATTORNEY (LPA): made by the person BEFORE they lose mental capacity (or while they still have sufficient capacity to make the LPA). It is a legal document that appoints one or more attorneys to act on their behalf. Two types: (a) Property and Financial Affairs LPA (LP1F): allows the attorney to manage bank accounts, investments, property, tax affairs, and finances generally. Can be used while the donor still has capacity (with their consent) or after capacity is lost; (b) Health and Welfare LPA (LP1H): allows the attorney to make decisions about medical treatment, care, accommodation, and daily life. Can only be used AFTER the donor lacks capacity to make that specific decision. Registration: the LPA must be registered at the Office of the Public Guardian (OPG) — a government body — before it can be used. OPG registration fee: £82 per LPA (2026). Timescale: registration currently takes 8-20 weeks once the form is correctly completed; (2) COURT OF PROTECTION DEPUTYSHIP: applied for AFTER the person has already lost mental capacity, when no valid LPA was made in time. A family member (or a professional) applies to the Court of Protection (CoP) under Mental Capacity Act 2005 ss.16-18 for an order appointing them as deputy. Two types: (a) Property and Financial Affairs deputy: most common; manages finances and property; (b) Personal Welfare deputy: rare — courts are reluctant to make these orders on the basis that one-off welfare decisions can be made without a standing order; (3) THE FUNDAMENTAL DIFFERENCE: LPA = PROACTIVE (you set it up now, costs £82-£164 for both, done in weeks). Deputyship = REACTIVE (applies after crisis, costs £1,000-£5,000+, takes 6-18 months, and comes with permanent ongoing oversight requirements).

The cost difference between an LPA and a Court of Protection deputyship is stark and is the primary reason financial advisers and solicitors urge everyone to make an LPA while they have capacity: (1) LPA COSTS: OPG registration fee: £82 per LPA (both P&FA and H&W = £164 total). If applying for fee remission (low income): £0 (free). DIY completion: use the WillSafe UK kit as a starting point; solicitor assistance: typically £200-£600 for both LPAs. Total with solicitor help: approximately £300-£800; (2) DEPUTYSHIP COSTS (FINANCIAL DEPUTY): (a) Court of Protection application fee: £371 (COP1 application fee, 2026); (b) Assessment fee: £494 for the CoP to assess the person's needs and capacity; (c) Order fee: £234 once the order is made; (d) Solicitor fees: if using a solicitor to prepare the application (strongly recommended for complex estates): £1,500-£4,000+; (e) Court of Protection reporting fee: £100/year when the OPG supervises the deputy; (f) Annual supervision fees: £320/year (general supervision) or more for close supervision; (g) Surety bond (insurance the deputy must take out to protect the incapacitated person's assets): premium of 0.25-0.35% of the supervised estate per year — for a £500,000 estate, approximately £1,250-£1,750/year; (h) ONGOING ANNUAL COSTS: the deputy must submit an annual report to the OPG detailing all transactions. Professional deputy (solicitor acting as deputy): £3,000-£5,000/year in professional fees; (3) COMPARISON OVER 5 YEARS: LPA: £164-£800 one-off. Deputyship: £2,500-£5,000 initial + £3,000-£7,000/year ongoing for a professional deputy, or £500-£1,500/year for a family member acting as lay deputy with surety bond. Over 5 years, deputyship could easily exceed £20,000-£40,000 for a large estate compared to £800 for an LPA; (4) EMERGENCY SITUATION — NO LPA: if there is an immediate need (e.g. mortgage payment pending, care placement required urgently), the CoP can make an urgent order under Practice Direction 10B — but this is not a substitute for deputyship and carries its own costs.

Attorneys acting under a registered LPA generally have broader, more flexible powers than deputies appointed by the Court of Protection. Deputies operate under a more restrictive regime: (1) THE DEPUTY'S POWERS ARE DEFINED BY THE COURT ORDER: an attorney's powers are defined by the LPA itself — typically very wide (all property and financial affairs). A deputy's powers are exactly what the Court order specifies — which may be narrower. The deputy cannot exceed the order; (2) MAJOR TRANSACTIONS REQUIRE COURT APPROVAL: deputies must return to Court (via a COP1 application or a further application under Practice Direction 9D) before: selling the person's property (above a threshold); making large gifts (beyond de minimis — gifts to charities or family members must be authorised by the Court above small amounts); settling litigation; changing investment strategy materially. An LPA attorney can do most of these without returning to Court (subject to acting in best interests); (3) ANNUAL DEPUTY REPORTS: deputies must submit an annual report to the OPG showing all receipts and expenditure for the year. The OPG audits these. An attorney under an LPA is not routinely required to report annually (though the OPG can investigate if concerns are raised); (4) SURETY BOND: deputies must take out a surety bond — a form of insurance protecting the person's estate if the deputy misappropriates funds. Cost: typically 0.25-0.35% of supervised assets per year. Attorneys under an LPA do not need a surety bond (though they can be investigated and removed if they misuse powers); (5) GIFTS BY DEPUTIES: very restricted. A deputy may make small gifts (de minimis — Christmas, birthdays, small charities) but cannot make IHT-planning gifts without a Court authority order. Attorneys under a P&FA LPA can make IHT planning gifts (and statutory gifts under MCA 2005 s.12) more straightforwardly — though they must always act in the donor's best interests; (6) DECISIONS DURING THE WAIT: the average time for a deputyship order is 6-18 months. During that time: (a) The person's bank accounts may be accessible for small amounts — contact the bank (many have bereavement/vulnerability teams); (b) Some banks accept a medical certificate and a solicitor's letter to allow urgent payments; (c) Benefits and pension payments often continue to be paid and can be used by the household; (d) For urgent property sales or healthcare decisions, apply for an urgent CoP order.

Discovering that a family member has lost mental capacity without a registered LPA is a difficult and often urgent situation. Here are the practical steps to take: (1) IMMEDIATE STEPS — FINANCES: (a) Contact the person's bank: most UK high street banks have vulnerability or bereavement teams who can, in some cases, allow a trusted family member to manage essential bills and direct debits while an application is in progress. Banks should not simply freeze all accounts immediately — they have a duty to consider the vulnerable customer's needs. Ask explicitly about their 'mental capacity/incapacity' process; (b) Benefits and state pension: DWP can appoint a 'DWP appointee' — a person who receives benefits on behalf of someone who cannot manage their own affairs. This is a quick (often a few weeks) process and covers Universal Credit, State Pension, PIP, and similar benefits; (c) Local authority: if the person has eligible care needs, the local authority can still arrange and fund care — they can work with an informal carer without an LPA while the deputyship application is progressing; (2) APPLY FOR DEPUTYSHIP: (a) Download Form COP1 from the Court of Protection; (b) Complete the application — include Form COP3 (medical evidence of incapacity); (c) Notify all relevant parties (family members, local authority if in care); (d) Pay the application fee (£371 + other fees); (e) A solicitor experienced in Court of Protection matters is strongly recommended — the application involves detailed financial schedules and capacity assessments; (f) Expect 6-18 months for the order; (3) MEDICAL EVIDENCE: Form COP3 must be completed by a registered medical practitioner or other approved professional who has assessed the person. The assessment must address the specific decision-making domains that are in question (property/financial; health/welfare); (4) IF THE PERSON STILL HAS SOME CAPACITY: it is not too late to make an LPA if the person still has sufficient understanding. Even someone with moderate dementia may retain capacity to grant an LPA at a particular moment (lucid intervals). A solicitor specialising in mental capacity should assess carefully. This is much faster and cheaper than deputyship; (5) STATUTORY WILL: if the person cannot make a will and has no existing will (or an outdated one), a statutory will can be made by the Court of Protection (MCA 2005 ss.18/22-23). This is separate from deputyship but often sought alongside it.

In almost all situations, a registered LPA is preferable to deputyship — but there are narrow circumstances where deputyship offers specific advantages or is the only available option: (1) SCRUTINY AND PROTECTION: for families where there is concern about financial exploitation of the vulnerable person, a deputyship order with annual reporting and surety bond provides MORE protection than an LPA (where the attorney acts without routine OPG oversight). If the family or the vulnerable person's social worker has concerns about a specific proposed attorney, deputyship may provide the oversight needed; (2) DISPUTED FAMILY SITUATIONS: if family members disagree about who should manage affairs, and no one attorney has been nominated in an LPA, the Court of Protection can appoint a neutral professional deputy or adjudicate between competing family applicants. An LPA made unilaterally by one family member without proper process can create family conflicts — a CoP-supervised deputyship is more transparent; (3) COMPLEX BUSINESS OR INVESTMENT AFFAIRS: for very large or complex estates (company director; family investment company; disputed business assets), the Court may give specific guidance on how the deputy should act — guidance that an LPA attorney does not have. The Court can supervise specific complex transactions; (4) WHEN NO ONE CAN AGREE ON AN ATTORNEY: if the person had not decided whom to trust and now lacks capacity, the Court can appoint a professional (a solicitor or professional deputy firm) rather than a family member — avoiding intra-family disputes; (5) THE PRACTICAL REALITY: these situations are relatively rare. For the vast majority of families, the message is straightforward: MAKE AN LPA NOW, WHILE YOU STILL CAN. The £82-164 OPG fee and a few weeks' paperwork is an extremely small price compared to the cost, delay, and complexity of a deputyship application later. Don't wait until a diagnosis — make the LPA as soon as you're over 18.