I have a will, so why do I need a Lasting Power of Attorney?

When people think about planning for the future, they often focus on wills and inheritance. A will sets out what happens to your assets after you die, and it’s certainly a vital part of any estate planning, but it’s not the full picture. While a will is important for setting out your wishes after death, it doesn’t offer protection or support if you're still alive but unable to make decisions. That’s where a Lasting Power of Attorney (LPA) comes in.

An LPA is a legal document that allows you to appoint someone you trust to make decisions on your behalf if you lose the capacity to do so, whether through illness, accident or age-related decline. It gives you control and peace of mind, knowing someone you’ve chosen can act in your best interests if needed.

There are two types of LPA: one for property and financial affairs, and another for health and welfare. The financial LPA allows a person of your choice to manage bank accounts, pay bills, or even sell property if necessary. The health and welfare LPA allows someone to make decisions about your care, medical treatment and living arrangements if you can’t decide for yourself.

Crucially, for those running a business, it is possible to have two financial LPAs in place, one for your personal finances and another specifically for your business interests. This allows you to appoint different people with the right skills to make decisions in each area. For example, you may want a trusted family member to manage household bills, while a business partner or adviser steps in to handle the operational side of a business.

Many clients come to us having already made an Enduring Power of Attorney (EPA) in the past. EPAs were the legal standard until they were replaced by Lasting Powers of Attorney (LPAs) in 2007. While EPAs can still be valid, they only cover financial matters and only take effect once someone has lost mental capacity, which can delay important decisions. LPAs, by contrast, are registered in advance with the Office of the Public Guardian and are ready to be used when needed. They also include a separate health and welfare option, which EPAs do not.

Unfortunately, if someone loses capacity without an LPA, family members must apply to the Court of Protection to be appointed as a deputy. This can be expensive, slow and emotionally difficult, and may not reflect what the person would have wanted.

We often speak to families and business partners left in limbo, unable to access bank accounts, pay for care, or make health decisions, despite having a valid will, because there was no legal authority in place. LPAs ensure that trusted people are legally empowered to help, without delay or legal complexity.

A will ensures your wishes are followed after death, while an LPA protects your interests during life. Together, they offer complete peace of mind, and it’s wise to have both in place sooner rather than later.