When we talk to clients about planning for the future, the conversation naturally leans towards pensions, investments, and building wealth. But every now and then, we have to talk about something a little less comfortable — what would happen if you were no longer able to make decisions for yourself.
It’s not a cheerful thought, but it’s an important one. And it’s why setting up a Lasting Power of Attorney (LPA) is something we believe should be considered by everyone, not just the elderly or those already dealing with health concerns.
What an LPA actually does
A Lasting Power of Attorney is a legal document that gives someone you trust the authority to make decisions on your behalf if you’re ever unable to do so. There are two kinds: one that covers your property and financial affairs, and another that relates to your health and personal welfare.
The financial LPA allows someone to manage things like your bank accounts, bills, savings, and investments. The health and welfare LPA covers care decisions, medical treatment, and where or how you might live if you’re no longer able to decide for yourself.
Without an LPA, no one — not even your spouse or adult children — can automatically step in. In those cases, families often face delays, stress, and the costly process of applying to the Court of Protection. It’s a situation that’s entirely avoidable with a bit of forward thinking.
How it fits into your wider financial planning
At Clarity Wealth Limited, we don’t offer legal services ourselves, so we don’t draft LPAs for clients. But that doesn’t mean we don’t talk about them. In fact, we see LPAs as a key part of responsible long-term planning.
If something unexpected were to happen, you’d want someone you trust to be able to step in and manage your finances. That might mean keeping an investment strategy on course, ensuring income keeps flowing, or simply paying household bills.
We also work with many families where adult children are already involved in financial discussions. Having an LPA in place makes it easier and more straightforward for them to help if the time ever comes.
It’s not just for later life
It’s easy to assume an LPA is something you sort out when you’re older, but the truth is that you can only set one up while you have full mental capacity. Leave it too late, and the option is no longer available.
That’s why we encourage clients of all ages — particularly those with children, property, or business interests — to consider putting one in place sooner rather than later. Hopefully, you’ll never need it, but if you do, it’s one of the most valuable documents you can have.
Don’t forget life and critical illness cover
While an LPA helps protect decision-making, it’s equally important to consider how your finances — and your loved ones — would be protected if you were to pass away or suffer a serious illness.
That’s where life cover and critical illness protection come in. These policies can provide essential financial support in the most difficult of times, helping to cover mortgage payments, living expenses, business liabilities or even the cost of care.
Unlike LPAs, this is something we can help with. As part of your financial plan, we can assess your needs and help you find the right level of cover to suit your circumstances — giving you peace of mind that your family, your home, and your business are protected.
What to do next
We’re not lawyers, so we don’t set up LPAs ourselves, but we regularly work with solicitors who do. If this is something you’re considering, we’re more than happy to introduce you to someone who can help.
And if you’re reviewing your broader financial plans or thinking about how to make sure everything is protected for the long term, we’d love to talk. Financial planning isn’t just about building wealth; it’s about making sure the right structures are in place to protect it — whatever life brings.
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