Lasting Power of Attorney (LPA): Why It Matters More Than You Think

Lasting Power of Attorney (LPA)

When people think about financial planning, they often focus on investing, pensions, or property.
But one of the most important protections you can put in place has nothing to do with markets or returns.

It’s called a Lasting Power of Attorney (LPA).

What Is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that allows you (the donor) to appoint one or more people you trust (the attorneys) to make decisions on your behalf if you lose the ability or no longer wish to make those decisions yourself.

Anyone aged 18 or over, with mental capacity, can make an LPA.

When Would an LPA Be Needed?

Someone may lack mental capacity if they have an injury, illness, or condition that affects how their mind works. This could include:

• A stroke

• Dementia or Alzheimer’s

• A serious accident or head injury

• Mental health conditions

• Sudden illness or hospitalisation

If this happens and no LPA is in place, your loved ones cannot automatically step in.

The Two Types of Lasting Power of Attorney

An LPA can take one of two forms: it can be a health and welfare LPA or a property and financial affairs LPA. A health and welfare LPA gives the attorney power to make decisions about the donor’s healthcare and personal welfare; while a property and financial affairs LPA gives the attorney power to make decisions about the donor’s property and financial affairs. The two types of power are distinct and separate from one another and are completed using separate forms.

Property and Financial Affairs LPA

This allows your attorney to make decisions about things like:

• Bank accounts and savings

• Paying bills and managing direct debits

• Investments and pensions

• Property decisions, including selling or renting

• Managing mortgages or debts

Health and Welfare LPA

This allows your attorney to make decisions about:

• Medical treatment and care

• Daily routines and personal welfare

• Living arrangements and care homes

• Life-sustaining treatment (if explicitly stated)

Why Is a Lasting Power of Attorney So Important?

Accidents and illness can happen at any age. If something unexpected happens and you’re unable to make decisions:

👉 Someone will need to step in.
👉 Without an LPA, your affairs can be frozen.
👉 Loved ones may have to apply to the Court of Protection, which can be costly, stressful, and slow.

The Benefits of Getting an LPA in Place Early

Putting an LPA in place isn’t pessimistic — it’s practical.

Key Advantages:

✅ You choose who makes decisions for you — not the courts or a stranger.

✅ Prevents family conflict — your wishes are clear, documented, and legally recognised.

✅ Keeps finances running smoothly — bills, mortgages, and investments do not get stuck at the worst possible time.

✅ Protects your assets — avoids delays that can cause financial harm.

✅ Gives peace of mind — you’ve planned for the “what if,” not just the “when.”

Common Misconceptions

Without an LPA, even a spouse or adult child may not be able to access accounts, manage investments, or make care decisions without court involvement.

A Lasting Power of Attorney isn’t just for older people or the wealthy. An LPA is insurance for your decision-making ability.

It’s one of the most important documents you can put in place — yet one of the most overlooked.