Most people know they should have a will, but far fewer think about what would happen if they're no longer able to make decisions for themselves.
Most people know they should have a will, but far fewer think about what would happen if they're no longer able to make decisions for themselves. That's exactly the gap a Lasting Power of Attorney (LPA) fills, and getting one in place is simpler than most people expect.
How to set up an LPA
There are two types. A property and financial affairs LPA covers bank accounts, investments, bills, and property. A health and welfare LPA covers medical treatment, care arrangements, and day-to-day welfare, but can only be used once you've lost mental capacity.
You can set up either or both using the government's online service at gov.uk. Once signed and witnessed correctly, you register it with the Office of the Public Guardian, the government body that holds the official LPA register. The form is free to complete, but registration costs £92 per LPA and takes around 8 to 10 weeks.
Using an LPA for your finance
With your permission, your chosen person can use it while you still have capacity, managing bank accounts, handling bills, dealing with investments, or sorting out property matters on your behalf. That makes it genuinely useful during a period of illness or reduced mobility, not just a document for worst-case scenarios.
The pitfalls to watch out for
A few common mistakes are worth knowing before you start.
- Leaving it too late. An LPA can only be made while you have mental capacity. Illness or injury can remove that option without warning.
- Choosing the wrong person. The person you appoint to act on your behalf will have real legal authority over your affairs. Choose someone based on genuine trust and capability, not just because they're family.
- Getting the paperwork wrong. The UK’s Office of the Public Guardian (OPG) rejected over 133,000 applications in 2024. Errors in signing or incomplete sections can mean starting over and paying the fee again.
- Not registering promptly. The LPA has no legal power until registered. If you lose capacity before that happens, you may not be able to sign the application yourself.
LPAs and your estate
An LPA ends the moment you die; at that point, your executor takes over, and your will governs what happens next. But during your lifetime, your attorney can manage property and handle financial accounts. Getting this right matters: poorly managed finances during a period of incapacity can significantly reduce the estate you leave behind.
LPAs and your financial plan
An LPA works alongside your will, pension nominations, and any trust arrangements you have. According to the OPG's 2024/25 annual report, there are now more than 9.3 million LPAs and EPAs on the register in England and Wales — yet many families still have nothing in place.
The advisers at LDB Wealth, based in Weybridge and at Dartford Business Park and working with clients across the UK since 2014, can help you understand how an LPA fits into your financial plan to make sure your plan covers everything it should.
Powers of Attorney are not regulated by the Financial Conduct Authority.
