When financial advisers and estate planners talk about building a robust estate plan, Wills often steal the spotlight—but there’s another key component that’s often overlooked: Lasting Powers of Attorney (LPAs).

LPAs are more than just a “nice-to-have”; they are essential tools that protect clients, their families, and their financial wellbeing during lifetime, not just after death.

In today’s advisory landscape, LPAs should be considered a cornerstone of holistic financial planning—especially in the context of joint accounts, equity release, and business continuity.

What Is a Lasting Power of Attorney?

A Lasting Power of Attorney is a legal document that allows someone (the donor) to appoint one or more trusted individuals (attorneys) to make decisions on their behalf if they lose mental capacity—or, in the case of a Property and Financial Affairs LPA, even while they still have capacity, by choice.

There are two types:

• Health and Welfare LPA
• Property and Financial Affairs LPA

This blog focuses on the latter, which has direct implications for financial planning, asset management, and business decisions.

Why LPAs Matter — Beyond the Basics

Many clients (and even advisers) mistakenly assume that LPAs are only necessary later in life. But mental incapacity can strike at any age due to illness, accident, or sudden cognitive decline. Without an LPA in place, families and advisers face delays, legal barriers, and frozen assets.

Let’s explore why that matters in specific financial contexts:

 1. Joint Accounts: Not Always As Accessible As You Think

It’s a common misconception that if one party on a joint account loses capacity, the other can automatically continue to operate it.

In reality, many banks will restrict access to joint accounts until a valid LPA is presented or the Court of Protection appoints a deputy—a process that can take months and cost thousands.

LPAs ensure continuity and reduce the risk of financial disruption.

2. Equity Release: Timing Is Everything

Equity release products are growing in popularity, but they require clear legal authority to act. If a client loses capacity before funds are drawn down—and no LPA exists—plans can stall indefinitely.

In fact, many equity release providers won’t proceed without seeing a registered LPA, especially where the client is vulnerable or at risk.

 Incorporating LPAs as part of the equity release journey protects your client and your recommendations.

3. Business Owners: Who’s at the Helm?

For clients who own or direct a business, losing capacity doesn’t just affect personal affairs—it can threaten the entire operation. Without an LPA that covers business decisions, staff salaries, supplier contracts, or tax filings could grind to a halt. Advisers working with business owners should always ask:

“Who would take over financial control if you couldn’t?”

Tailored LPAs with business-specific clauses are a smart, strategic safeguard.

Why Advisers Should Always Raise LPAs

As a financial adviser or estate planner, you are in a privileged position to spot the gaps. Including LPAs in your client conversations shows that you’re not just managing assets—you’re protecting lives.

Benefits of introducing LPAs into your advice process:

• Deepens client trust by showing you care about their future security, not just current returns
• Adds tangible value to your service offering, enhancing client retention
• Prevents future financial disruption, protecting both the client and their family
• Strengthens intergenerational relationships, positioning you to advise family members too
• Mitigates risk to your advice model—especially when planning around long-term income or asset release strategies

LPAs as Part of Holistic Advice

Holistic financial planning means thinking beyond investments and pensions. It means preparing clients for the “what ifs” in life—not just death.

Advisers who bring LPAs into the planning conversation demonstrate foresight, empathy and an understanding of real-world risks. These are the traits that build enduring client relationships.

Practical Next Steps for Advisers

1. Add LPA review questions into your client fact-find or annual review process.
2. Work with a specialist provider (like BTWC) to draft and register LPAs correctly and efficiently.
3. Educate clients with examples—like frozen joint accounts or business disruption—so the need becomes real.
4. Tie LPAs into other advice areas: estate planning, cashflow modelling, IHT strategies, and later-life lending.

Final Thoughts

LPAs aren’t just legal documents—they’re lifelines. As an adviser, they offer you an opportunity to expand your role from transactional to truly transformational.

By making LPAs a routine part of estate and financial planning, you help clients gain peace of mind—and you reinforce your place as their most trusted adviser.

Want support incorporating LPAs into your advice process?

BTWC can help you deliver fully compliant, client-friendly solutions under your own brand—seamlessly integrated into your existing services.

Let’s work together to protect more than just your clients’ wealth—let’s protect their future.

enquiries@btwc.co.uk 01522 500823