Most people spend time planning for retirement, building savings and protecting their family's future. Far fewer take the time to consider what would happen if they suddenly became unable to make decisions for themselves. It is not an easy topic to think about, but it is one of the most important conversations you can have.
A Lasting Power of Attorney helps ensure that if the unexpected happens, the people you trust can step in and make decisions on your behalf. Without one, even those closest to you may face significant delays, costs and complications when trying to help.
What is a Lasting Power of Attorney?
A Lasting Power of Attorney, often referred to as an LPA, is a legal document that allows you to appoint one or more people you trust to make decisions on your behalf if you are unable to do so yourself.
There are two types of LPAs:
A Property and Financial Affairs LPA - this covers decisions about your money, property, bills, and investments.
A Health and Welfare LPA - this covers decisions about your medical treatment, daily care, and where you live.
You can put one or both in place, depending on your circumstances.
The person you appoint is called your attorney. You can name more than one, and you can set out specific instructions or restrictions on what they can and can’t do.
Why do so many people delay it?
It’s one of those things that feels like it can wait. You’re healthy, you’re managing fine, and it feels like something for "older people". However, the reality is that mental capacity can be lost suddenly.
The key point is that an LPA must be arranged while you still have mental capacity. Once capacity has been lost, it is no longer possible to put one in place.
What happens if you do not have an LPA in place?
This is where many families are caught by surprise. If you lose mental capacity and do not have an LPA, your loved ones cannot simply step in and manage your affairs. Instead, they may need to apply to the Court of Protection for a Deputyship Order.
Applications can take many months to be approved. There are court fees, potential legal costs and ongoing reporting requirements once a deputy has been appointed. In the meantime, important financial decisions may be delayed and access to certain assets may become restricted.
It is also worth noting that a spouse or civil partner does not automatically have the legal authority to manage assets held solely in your name.
Who is most likely to be affected?
This is where many families are caught by surprise. If you lose mental capacity and do not have an LPA, your loved ones cannot simply step in and manage your affairs. Instead, they may need to apply to the Court of Protection for a Deputyship Order.
Applications can take many months to be approved. There are court fees, potential legal costs and ongoing reporting requirements once a deputy has been appointed. In the meantime, important financial decisions may be delayed and access to certain assets may become restricted.
It is also worth noting that a spouse or civil partner does not automatically have the legal authority to manage assets held solely in your name.
Why do LPAs fit into financial planning?
A financial plan is designed to help you achieve your goals and provide security for you and your family. What happens if you are no longer able to manage that plan yourself?
Without an LPA, important decisions relating to investments, pensions, tax planning and wider financial affairs may be delayed or become significantly more complicated.
With an LPA in place, your chosen attorney can work alongside your financial adviser and other professional advisers to ensure your affairs continue to be managed in line with your wishes.
It provides continuity, clarity and reassurance during what could otherwise be an extremely challenging period.
Setting up an LPA
The process is generally straightforward. You will choose the people you would like to act as your attorneys, decide how they should make decisions and complete the relevant documentation.
The LPA must then be registered with the Office of the Public Guardian before it can be used.
There is currently a registration fee for each LPA, although fee reductions or exemptions may be available in certain circumstances. Many people choose to work with a solicitor when preparing LPAs, although this is not a legal requirement.
The most important thing is not how it is arranged, but that it is arranged before it is needed.
How can we help you?
While none of us can predict the future, we can take practical steps to prepare for it.
Putting an LPA in place is one of the simplest and most effective ways to help protect both your wishes and the people closest to you.
While we do not draft Lasting Powers of Attorney ourselves, we can help you understand where an LPA fits within your overall financial plan and work alongside your solicitor or legal adviser to ensure everything works together effectively.
If you would like to review your financial planning arrangements and ensure the right protections are in place for you and your family, please get in touch with our team, please get in touch with us.
Important Information
This information is for general guidance only and does not constitute personal financial advice. You should seek professional advice tailored to your individual circumstances before making any financial decisions.
The Financial Conduct Authority does not regulate Lasting Powers of Attorney, will writing, or trust services. Legal services should be provided by a qualified solicitor.
This article is for general information only and does not constitute personal financial advice. The information is based on our understanding of current legislation and proposed changes as at May 2026, which may be subject to change.
Lathe & Co Wealth Advisers Ltd is authorised and regulated by the Financial Conduct Authority (838186).
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