Lasting Power of Attorney: What It Is & Why You Need One

Most people associate estate planning with wills. But a will only comes into effect after you die. The question of what happens if you are alive but unable to manage your own affairs — through dementia, serious illness, or accident — is one that a Will cannot answer.

That is where a Lasting Power of Attorney comes in. It is one of the most important documents you can create — and one of the most frequently overlooked.

What Is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that authorises one or more people — your attorneys — to make decisions on your behalf should you become unable to do so yourself. You create it while you have mental capacity; it is available to be used if and when you need it.

There are two types of LPA, and they cover completely different areas of your life. Most people benefit from having both.

Property & Financial Affairs LPA

This gives your attorney the authority to manage your financial life: paying bills, managing your bank accounts, buying or selling property, and handling your investments. This type of LPA can be used while you still have mental capacity, with your permission — as well as when you don't.

The importance of this is easy to underestimate. If you and your partner have a joint bank account and you lose mental capacity, banks and building societies can restrict access to that account — even for your partner. The British Banking Association has confirmed that if one joint account holder loses mental capacity, banks may temporarily limit the account to essential transactions only. Your partner could find themselves unable to freely access funds that are partly theirs — including pension payments or salary paid into that account — without a court order.

Health & Welfare LPA

This gives your attorney the authority to make decisions about your medical and personal care — where you live, what treatment you receive, your daily routine, and even decisions about life-sustaining treatment if you choose to grant that authority. This type of LPA can only be used when you lack the capacity to make those decisions yourself.

Without a Health & Welfare LPA, medical professionals and care providers will make decisions based on what they consider to be in your best interests — with input from family where possible, but no legal obligation to follow their wishes. Your attorney, by contrast, has a legal duty to act on your known preferences and values.

What Happens Without an LPA?

If you lose capacity without LPAs in place, your family has one route: applying to the Court of Protection for a deputy to be appointed. This process is slow, expensive, and emotionally draining — at precisely the moment your family has enough to cope with.

The court route costs thousands of pounds in legal fees — significantly more if a solicitor is required throughout. An LPA, by contrast, is a one-time document that removes this risk entirely.

Who Should Have an LPA?

The short answer is: everyone. The common assumption is that LPAs are for older people, or those already managing a health condition. But capacity can be lost at any age — through a road accident, a stroke, or sudden illness. The only requirement to make an LPA is that you have mental capacity at the time of signing.

If you are making a Will, setting up LPAs at the same time is strongly recommended. The decisions overlap significantly — your attorney and your executor are often the same trusted people — and dealing with them together is more efficient than returning to the process later.

Key Decisions Before You Make an LPA

• Who should be your attorney? Choose someone you trust absolutely — they will have significant authority over your finances and/or health. You can appoint more than one attorney.
• Should they act jointly or independently? Attorneys acting jointly must agree on every decision together. Attorneys acting independently can each act alone. There are also hybrid arrangements. The right choice depends on how much you trust each attorney to act alone.
• Should you give your attorney full authority, or limit it? You can restrict the scope of your LPA — for example, limiting a financial attorney to specific accounts or excluding certain types of transactions.
• Do you want to name a replacement attorney? If your first-choice attorney is unable or unwilling to act, a replacement ensures continuity rather than a return to court.
• Life-sustaining treatment — for Health & Welfare LPAs. You can choose whether to grant your attorney authority over decisions about life-sustaining medical treatment, or reserve those decisions for medical professionals. This requires careful thought and is best discussed with your family.

Your LPA and Your Will — How They Fit Together

An LPA and a Will are complementary, not alternatives. Your LPA covers decisions made during your lifetime if you lose capacity. Your Will takes over at the point of death. An LPA expires when you die — at that point, your executor steps in under the terms of your Will.

Your attorney under an LPA cannot change your Will. No matter what authority they hold, your Will remains yours alone.