Why Waiting to Put a Lasting Power of Attorney in Place Can Be a Costly Mistake
- 13 hours ago
- 3 min read
One of the first questions we often ask during a client review is simple:
“Have you put your Lasting Powers of Attorney (LPAs) in place?”
Surprisingly often, the answer is no.
Many people then say something similar: “We arranged one for a parent.”
When asked whether they ever needed to use it, the response is almost always the same — it was extremely helpful.
That naturally leads to an important question:
If it made such a difference for your family, why not put the same protection in place for yourself?
“We’re Not at That Stage Yet”
A common response is:
“We’re not at that stage yet.”
Often this is because people associate LPAs with conditions such as dementia or long-term illness — something they believe will develop gradually, giving them plenty of time to prepare.
While it is true that some conditions progress slowly, loss of mental capacity does not always come with warning.
A sudden illness, accident, or stroke can change circumstances instantly. One moment everything is normal; the next, decisions may need to be made on your behalf.
If LPAs are not already in place at that point, the opportunity to create them may have passed.
What Happens If There Is No LPA?
Without a valid LPA, families cannot automatically step in to manage finances or make important decisions.
Instead, they may need to apply to the Court of Protection to be appointed as a deputy.
This process can be:
• Lengthy and intrusive
• Complex, often involving around 120 pages of paperwork
• Emotionally draining at an already difficult time
Court fees throughout the process can typically total around £3,500. Even once a deputy is appointed, their powers are often restricted.
For example, deputies may not be able to spend more than £500 of the individual’s money without seeking further approval from the court.
Decisions that would normally be straightforward can take weeks or even months, as applications must be reviewed and authorised.
Deputies are also required to submit annual accounting reports, provide bank statements, and pay an ongoing supervision fee (currently £315 per year).
All of this can create unnecessary delay, stress, and expense for families.
The Difference an LPA Makes
When a Property and Financial Affairs LPA is in place, the situation is very different.
There is:
• No involvement from the court
• No lengthy applications
• No ongoing reporting requirements
Your chosen attorneys can act quickly and efficiently, ensuring that financial matters are managed without unnecessary delay.
This allows families to focus on supporting one another, rather than navigating complex legal processes.
Why Health and Welfare LPAs Matter Just as Much
We often see clients who have completed a Property and Financial Affairs LPA but have not arranged a Health and Welfare LPA.
This usually happens because:
• They were not advised to create one
• They did not believe it was necessary
However, if mental capacity is lost and there is no Health and Welfare LPA, decisions about care, treatment, and living arrangements may be made without family input.
Where local authorities are involved in funding care, they may choose the most cost-effective option available.
Without the appropriate authority in place, families may find themselves unable to challenge decisions they strongly disagree with.
Protect Your Future Before It Becomes Urgent
Many families only discover the importance of a Lasting Power of Attorney when it is already too late to put one in place.
By planning ahead, you ensure that the people you trust can step in quickly if they ever need to manage your finances or make important decisions about your care.
At Sanctuary Tax & Trust, we help clients structure their LPAs properly so they work exactly as intended when the time comes.
If you would like guidance on putting the right protections in place, you can arrange a free, no-obligation review with our team.
A short conversation today could prevent significant stress, delay, and expense for your family in the future.
Further Guidance and Support
If you would like to learn more about the topics discussed in this article, the following pages provide further information about how Sanctuary Tax & Trust supports families with planning and protection:
Lasting Power of Attorney Services – Learn more about setting up a Lasting Power of Attorney with Sanctuary.
Estate Planning – Explore our estate planning services and how we help families protect their future.
Inheritance Tax Planning – See how careful inheritance tax planning can help preserve family wealth.
Probate Services – Find out how Sanctuary supports families through the probate process.
Book a Consultation – Arrange a free, no-obligation review with our team.
