Why Lasting Powers of Attorney Are Just as Important as Wills

Planning for incapacity is often overlooked, yet it can have a greater impact on families than death itself.

Key Insight

Many people focus their estate planning on what happens after death, but far fewer consider what may happen if they lose the ability to make decisions during their lifetime. Without a Lasting Power of Attorney in place, family members may face significant delays, costs and legal complications before they are able to manage financial or personal affairs on someone’s behalf.

Estate planning discussions often begin with Wills, and understandably so.

A Will determines how assets are distributed after death and ensures that personal wishes are respected.

However, an equally important aspect of planning is often overlooked: preparing for the possibility of losing mental capacity during one’s lifetime.

If someone becomes unable to manage their own affairs and no Lasting Power of Attorney has been established, even close family members may not automatically have the authority to step in.

Banks, financial institutions and healthcare providers typically require formal legal authority before allowing others to act on someone’s behalf.

In these circumstances, families may need to apply to the Court of Protection for deputyship.

This process can take many months and often involves additional costs, administrative responsibilities and ongoing court supervision.

A Lasting Power of Attorney allows individuals to appoint trusted people to make decisions on their behalf should they lose capacity in the future.

There are two types: one covering Property and Financial Affairs, and another covering Health and Welfare decisions.

Putting these arrangements in place while capacity is intact ensures that decisions can be made quickly and smoothly if circumstances change.

Estate planning therefore involves more than preparing for death. It also means ensuring that the right people are authorised to act if life takes an unexpected turn.