Why you shouldn’t overlook a power of attorney

Amanda Kanesarajah
Regulation and Risk Manager
RBC Brewin Dolphin

You’ve spent years building your life, your wealth, and your family. Naturally, you want to protect all of it – but there’s one safeguard many people overlook.

A lasting power of attorney (LPA) is your way of saying: “If something happens to me, here’s who I trust to look after my affairs.” It’s not about expecting the worst – it’s about being prepared for life’s uncertainties. Yet only one in five people over 55 have one in place.

The good news? Setting up an LPA is straightforward, and doing it now gives you and your loved ones peace of mind.

Why does an LPA matter?

Life is unpredictable. While we hope these situations never happen, they’re more common than many people realise:

• Nearly a million people in the UK are living with dementia – a number expected to grow as lifespans increase. And it’s not just elderly people who can find themselves unable to make important decisions.
• Around 100,000 people experience strokes each year, which can happen at any age.
• Almost 124,000 people were admitted to hospital in the UK with head injuries in 2023-24 alone.

These aren’t just statistics – they represent families who suddenly faced difficult decisions. An LPA means your family won’t have to fight through legal processes to act in your best interests. Instead, they can focus on your wellbeing.

Despite the importance of LPAs, from July to September 2025, there were 384,069 LPAs registered, down 7% compared to the equivalent period in 2024.

What is a lasting power of attorney?

An LPA is a legal document which enables you to name one or more people who’ll look after your care and financial affairs if you lose mental capacity. They could be a member of your family such as your son or daughter, a friend or a trusted professional like a solicitor or accountant.

The key details

• You can put an LPA in place at any age over 18.
• You control when it takes effect – immediately or only when capacity is lost.
• All LPAs must be registered with the Office of the Public Guardian (OPG) before they can be used.
• You can make changes anytime while you have capacity.
• An unregistered LPA is not legally valid.

There are two main types of LPAs which cover different types of authority, and you can choose to make one type or both:

• Property & Financial Affairs: you appoint an attorney (an individual named in the LPA), either by using an online government service or through a solicitor, to look after any property or financial decisions such as buying or selling homes, or making decisions about investments, pensions or gifts.
• Health & Welfare: your attorney will make decisions on your health and wellbeing such as choice of care home.

Note: LPAs can be established at different times and may appoint different people.

“An LPA should be a vital consideration of your retirement and wealth management strategy,” says Amanda Kanesarajah, regulation and risk manager at RBC Brewin Dolphin. “It’s not about giving up control – it’s about staying in control by choosing who you trust to act for you if needed. You’re protecting your independence, even in difficult circumstances.”

What happens if you don’t put an LPA in place?

If you don’t have LPAs in place, your family will not automatically have the right to manage your money. Important health and care decisions can also be delayed while professionals and relatives work out who has authority.

If you don’t put one in place before you lose your capacity and your family do wish to take control, then an application must be made to the Court of Protection in England and Wales. This can be a complex, costly and lengthy process for your family at what is often a difficult time. The court could appoint, for example, a relative you wouldn’t have chosen or even a professional deputy, reducing family control.

“Decisions are often left too late and that leaves your finances and your family in limbo,” says Kanesarajah. “Someone becomes ill or has an accident, and suddenly their family can’t access investments they need to fund care. Even if we know the family well, RBC Brewin Dolphin legally can’t take instructions from anyone except the registered attorney where our client loses mental capacity. Everything stops – at exactly the moment when swift action would often help the most.”

Choosing an LPA

If you’re selecting from members of your family, then it needs to be done sensitively. “Your children will naturally behave in different ways. One could be more empathetic, while the other is more organised. So, one solution could be to draw up the LPA yourself, so decisions have to be made together,” says Kanesarajah.

While you have mental capacity, you should review your LPA – it shouldn’t be set in stone. As long as you have mental capacity, you can update or replace it if circumstances change – relationships shift, people move away, or you simply reconsider your choice.

When to take out an LPA

Kanesarajah believes that consideration of an LPA should begin when people hit their 30s, getting their career established and starting a family. But many people fail to do so. A survey by the Office of the Public Guardian revealed that 45% of people aged 45 and over knew nothing about LPA. This is because some people believe if they do become incapacitated that a family member will be able pick up the reins. However, an LPA is only valid when you have the mental capacity to set one up and register it.

“Awareness is improving, but overall, it’s still low,” says Kanesarajah. “Many people associate lasting power of attorney with the older generation. It’s easy to put off because life gets in the way, such as work, family responsibilities and holidays. But they should consider doing it as soon as they can. It’s a little like taking out travel insurance. If the worst happens, then you’re covered.”

How can RBC Brewin Dolphin help?

“We encourage clients to bring people who will or could be their attorneys to our investment meetings,” Kanesarajah says. “They learn to understand your wishes, thought processes and an attorney’s obligations. Have someone waiting in the wings who’s been down the beaten path with you.

“We’ll also remind and guide you on the importance of putting an LPA in place at your annual review meetings.

“An effective LPA is one of the most vital things you will draw up,” says Kanesarajah. “It’s the continuation of your wishes and can mitigate some huge financial risks.”

If you’re interested in putting an LPA in place, please visit this government site.

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The value of investments, and any income from them, can fall and you may get back less than you invested. This does not constitute financial planning, tax, or legal advice. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. You should always check the tax implications with an accountant or tax specialist. Information is provided only as an example and is not a recommendation to pursue a particular strategy.