Lasting Powers of Attorney (LPAs) are one of those things that most people are aware of, broadly understand, and fully intend to put in place at some point – but rarely feel any urgency to act on.
In many cases, they sit somewhere in the background, behind more immediate financial priorities such as investments, pensions, or tax planning. Those areas feel more active, more tangible, and easier to engage with, whereas LPAs can feel like something to deal with “later”.
The difficulty, of course, is that by the time they feel important, the opportunity to put them in place may already have passed.
I know this, unfortunately, from personal experience within my family with respect to my late grandma.
The Part of Planning That Gets Delayed
In our experience, very few clients actively push back on the idea of having LPAs in place. The logic is clear, and the value is understood at a high level.
What tends to happen instead is that they are acknowledged, discussed, and then postponed.
We often find ourselves revisiting the same conversation over time – raising it in review meetings, agreeing it should be done, and then seeing it quietly drop down the list again as other priorities take over. That’s entirely human, particularly when there’s no immediate pressure to act.
However, this is one area where delay can have consequences that aren’t immediately obvious. By the time it becomes relevant, it is often too late to make the necessary arrangements.
A Real Example
We worked with a client who, like many others, had been meaning to arrange LPAs for some time. It had come up in conversations more than once, and while there was no disagreement about the need for them, it was something that never quite made it to the top of the list.
Eventually, after several reminders, he and his wife arranged, through their close personal friend, to put in place both their financial and health LPAs.
Not long after, he was hospitalised with a serious illness, and then again, more recently, with a completely different life-threatening condition.
Reflecting on that experience, what stood out to him was not just the seriousness of the situation, but the sense of clarity that came from knowing the right structures were already in place.
He knew that if something had gone wrong, his wife would not have been left trying to navigate financial decisions or healthcare choices without the authority to do so.
In his words, it allowed him to focus on his recovery rather than worrying about what might happen if he didn’t.
Why LPAs Matter
At a practical level, an LPA allows someone you trust to make decisions on your behalf if you are unable to do so yourself.
This typically covers:
- Managing bank accounts, investments, and property
- Making decisions around healthcare and treatment
- Ensuring bills, obligations, and day-to-day finances continue to run smoothly
Without an LPA in place, even close family members may find themselves unable to act, creating unnecessary complexity at an already difficult time.
This is where LPAs sit within the wider context of financial planning. It is entirely possible to have a well-structured, carefully managed financial plan, but if the people around you cannot access or manage it when required, that plan becomes difficult to implement in practice.
Not Just About Later Life
One of the most common misconceptions is that LPAs are something to think about later in life, often associated with declining health or specific conditions such as dementia.
In reality, the situations in which they become relevant are far broader. LPAs are not about age; they are about preparedness.
They become important in situations such as:
- Serious illness requiring hospitalisation
- Accidents that affect mental or physical capacity
- Unexpected events where decisions need to be made quickly
For that reason, putting LPAs in place is less about planning for a particular scenario and more about ensuring a clear framework should something unforeseen occur.
Getting the Basics Right
There is often a natural focus in financial planning on optimisation – improving tax efficiency, refining investment strategy, or structuring assets in the most effective way.
While these areas are important, they sit on top of something more fundamental.
Making sure that the basic elements are in place provides the foundation that allows everything else to function properly. In practice, that means ensuring:
- Wills are up to date and reflect current intentions
- LPAs are in place for both financial and health decisions
- Key responsibilities and roles are clearly defined
Without that foundation, even well-considered plans can fall short when tested.
A Practical Consideration
Putting an LPA in place does not need to be overly complicated, and for many people, it can be done relatively simply.
That said, there are still decisions to think through carefully. Choosing who should act on your behalf, deciding whether decisions should be made jointly or individually, and ensuring those individuals are both capable and willing to take on the responsibility are all important considerations.
These are not always straightforward choices, and taking the time (and advice) to get them right can make a meaningful difference later on.
Why This Matters
LPAs are often easy to overlook because they do not deliver an immediate or visible benefit – similar to an insurance policy.
However, as the example above illustrates, their importance becomes clear when they are needed.
They form part of the underlying structure that supports a financial plan, and while they may not feel urgent, they are one of the few elements that cannot be put in place retrospectively.
As with most areas of planning, addressing them early tends to provide the greatest flexibility and peace of mind.
If this is something you have been meaning to put in place, it’s worth bringing back into focus sooner rather than later.
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