The prospect of losing mental capacity is difficult to consider, but sadly, it’s far more common than you might think. 

Indeed, Alzheimer’s Disease International reveals that there were over 55 million people around the world living with dementia in 2020. This figure is expected to rise to 78 million by 2030 and 139 million by 2050.

If you don’t have the proper protections in place and later lose capacity, you may struggle to manage your affairs. Your loved ones could even face long and complex legal challenges to step in on your behalf. 

Fortunately, a Lasting Power of Attorney (LPA) is one of the most effective safeguards available. 

World Alzheimer’s Day occurs on 21 September 2025, so this could be the perfect time to assess why establishing an LPA is so essential for your future wellbeing. Continue reading to learn more.

A Lasting Power of Attorney allows you to appoint someone to manage your affairs

Simply put, an LPA is a legal document that allows you to appoint someone you trust to make decisions on your behalf should you lose the ability to do so yourself. This person is known as your “attorney” and you can appoint more than one. 

Despite the importance of LPAs, many people still overlook them.

The Office of the Public Guardian reports that while around 40% of UK adults have written a will, fewer than 1% have registered an LPA. 

Read more: Why you need a will and how Octopus Legacy could help

You might assume that your loved ones automatically gain the right to make decisions if you lose mental capacity. 

This isn’t always the case. Even your spouse or civil partner might struggle to manage your finances or make decisions about your health if you don’t have an LPA in place. 

There are two main types of LPA in England and Wales: 

• Health and welfare – Gives your attorney the power to make decisions regarding your daily routine, your medical care, whether you move into a care home, and any life-sustaining treatment.
• Property and financial affairs – Allows your attorney to make decisions about managing your bank and building society accounts, paying bills, collecting benefits (such as your pension), and even selling your home. 

Acting early is vital, as you must have full mental capacity when creating an LPA. However, once registered, it can take effect when you need it, either temporarily or permanently. 

It’s worth noting that a property and financial affairs LPA can come into effect straight away if you wish, while a health and welfare LPA does not take effect until you lose capacity.

3 practical reasons to establish a Lasting Power of Attorney

1. You stay in control over your affairs

While you may lose capacity, an LPA helps you retain control over how your affairs will be managed.

By tailoring your LPA to your personal needs, you can be confident that your affairs will be managed according to your wishes if your health deteriorates.

Without one, the courts may appoint someone for you – and that person may not be the one you would have chosen.

2. It can protect you at any stage of your life

Many people assume they will only need an LPA in the later stages of life. However, illness, injury, or an unexpected stay in hospital could leave you unable to manage your affairs at any age.

If you have dependants, this could be especially disruptive.

By contrast, an LPA ensures your finances and wellbeing are appropriately managed, no matter what stage of life you’re at.

3. It can give you and your loved ones peace of mind

Above all, having an LPA in place can give you the peace of mind that your financial and physical wellbeing will managed if you can no longer do so yourself. 

Moreover, your LPA will remain in place for your lifetime – unless you stipulate otherwise – because you will have chosen an attorney (or attorneys) you trust. 

This means your loved ones will not have to face difficulties making decisions on your behalf if you lose capacity. 

It can also save your loved ones from the stress of applying to the Court of Protection to appoint a deputy. This process can be expensive, involving ongoing annual fees, while the cost of an LPA is a one-off fixed fee. 

Dealing with the Court of Protection is also slow and complex, which could prove emotionally draining for your family during an already difficult time. Having an LPA in place could allow your family to focus on supporting you.

It’s vital to ensure that your attorney understands their responsibilities

Talking about your future mental capacity and potential care needs can be uncomfortable. However, it’s vital to have these conversations – when your loved ones understand your wishes, they will know exactly how to act if your health declines. 

Discussing your LPA could also help your chosen attorneys understand their future responsibilities. It also ensures everyone is clear on how you want to be supported under challenging circumstances. 

It might also be prudent to encourage your older relatives, such as your parents, to consider their own LPAs. While difficult to approach, these conversations can prevent unnecessary strain further down the line.

Optimum Path can help you understand your wishes and navigate challenging conversations

Arranging an LPA is often easier said than done. The legal process, combined with the emotional complexities involved with planning for potential loss of capacity, can feel daunting. 

At Optimum Path, we can assist you with every step. We will take the time to understand your wishes and help you decide who to appoint, as well as the type of LPA that might best suit your circumstances. 

We’ll also refer you to an appropriate professional to put one in place.

We could also act as a neutral third party during financial discussions with your family, helping to ease any tension and make sure everyone feels heard. This could allow you to put any necessary protections in place with confidence, knowing they reflect your needs and wishes.

Be sure to contact us now to find out how our Chartered financial planners can help. 

Please note

This article is for general information only and does not constitute advice. The information is aimed at retail clients only.

All information is correct at the time of writing and is subject to change in the future.

The Financial Conduct Authority does not regulate estate planning, Lasting Powers of Attorney, or will writing.