Why registering a Lasting Power of Attorney should be your new year’s resolution

As you settle into 2026, you might be making plans – and resolutions – for the year ahead.

In particular, you may be considering setting financial goals, as discussed in our recent article: Five “SMART” goal-setting tips for a financially fruitful 2026.

In addition to managing and growing your wealth, you might consider putting contingency plans in place to protect your wealth in the event you become seriously unwell.

Registering a Lasting Power of Attorney (LPA) can help ensure your chosen loved ones have the financial access and input into healthcare decisions they’d need if you became unable to make decisions for yourself.

And yet, research cited by IFA Magazine found that just 17% of UK adults aged 40 or over have appointed an attorney.

Read on to learn what an LPA is and why registering one might be a worthwhile resolution for 2026.

You can use a Lasting Power of Attorney to outline your wishes and guide future decisions

An LPA is a legally binding document granting one or more “attorneys” the authority to make decisions on your behalf.

There are two types of LPA. You (the “donor”) can choose to register just one type or both, and you can select different attorneys for each if you wish.

• Health and welfare: This covers all areas of daily living and healthcare, such as medical treatment and where you live. Typically, it only comes into effect if you lose the mental capacity to make decisions.
• Property and financial affairs: This grants access to your finances, including any pensions, mortgages, investments, and bills. It can be used both whilst you’re able to make decisions yourself (with your permission) and in the event that you lose mental capacity.

You can use an LPA to outline your preferences and provide input into future decisions. For example, you might request that your property be rented out rather than sold to pay your care fees, in the event you need residential care in future.

These preferences are not legally binding, and it might not always be possible to honour your wishes. Even so, providing instructions can be a helpful guide should your attorney need to make certain decisions.

A Financial Planner can help you understand what instructions should be included for your financial circumstances.

Losing mental capacity without a registered attorney could see your loved ones face a lengthy battle for deputyship

Without an LPA in place, your loved ones would be unable to immediately take control of your affairs if you lost the mental capacity to make your own decisions.

Instead, they would need to apply for a deputyship order through the courts. This would be done without your input, meaning financial control could be granted to someone you wouldn’t have chosen yourself.

Not only can this process cost thousands of pounds, but it can take several months. Meanwhile, your loved ones could be locked out of your finances.

The deputy would then have to pay a yearly fee and submit an annual report – neither of which is necessary when you have an LPA registered.

Crucially, deputies are often only appointed for financial purposes. Health and welfare decisions will generally default to medical professionals, who may not understand your personal preferences.

It’s never too soon to register a Lasting Power of Attorney

Whilst you might associate losing mental capacity with later-life conditions such as dementia, unexpected illnesses or injuries could leave you unable to make decisions at any time. Once you have lost mental capacity, your family will be unable to register a valid LPA.

As such, it’s never too soon to set one up and get peace of mind that you and your loved ones are protected should the unexpected happen.

Contrary to popular belief, marriage and civil partnership do not grant a spouse or civil partner automatic rights to make decisions on your behalf. Without a registered LPA, they could be locked out of financial assets held in your name and unable to make decisions about your healthcare.

Likewise, assigning beneficiaries and executors in a will is not the same as granting power of attorney. Whilst these documents are often completed simultaneously, making a will is not a substitute for registering an LPA. An LPA applies during your lifetime and ends on your death. Your will would then determine what happens to your estate after your death.

A Lasting Power of Attorney offers different rights and protections from an ordinary Power of Attorney

It’s important to note that an ordinary Power of Attorney (OPA) does not provide the same cover as an LPA.

They differ in a few key areas:

• An LPA remains valid even after you have lost mental capacity and stays in place until you change or cancel it, whilst an OPA is usually temporary and will generally end on a predetermined date or when you lose mental capacity.
• An LPA can be used to grant the right to make healthcare decisions on your behalf, whereas an OPA is typically only used for financial affairs.
• You must register an LPA for it to be legally binding, whereas an OPA doesn’t necessarily require registration.

As a result, it’s often worth registering an LPA even if you have a current OPA in place.

Keep your LPA up to date as circumstances change

Once your LPA is registered, it will remain legally binding until you cancel it. If circumstances change, it’s important to keep your document up to date to ensure the right person is granted control of your decisions if necessary.

For example, you may wish to change your LPA if:

• An attorney passes away or loses mental capacity themselves
• Your relationship with an attorney changes due to events like divorce
• You wish to add a new attorney, such as a new partner or a child who has come of age
• A shift in circumstances means you want to update your instructions.

By regularly reviewing your LPA, you can help ensure it reflects your current wishes so your preferred attorneys can make the right decisions for you.

Get in touch

Email us at enquiries@pen-life.co.uk, or call 01904 661140.

Please note

This article is for general information only and does not constitute financial or legal 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.