Estate Planning and Power of Attorney: Your Key Questions Answered

19th December 2025

Estate planning is not just about writing a Will, it’s about protecting your wishes during your lifetime and after it. A Power of Attorney (POA), particularly a Lasting Power of Attorney (LPA), plays a crucial role. Yet many people don’t realise how the two connect or why both are essential.

What is estate planning?

Estate planning is the process of organising how your money, property and personal wishes will be handled both while you’re alive and after you die. It typically includes:

• Writing a Will
• Setting up a Lasting Power of Attorney (LPA)
• Planning for inheritance tax
• Managing property, investments, and pensions
• Expressing care preferences and medical wishes
• Protecting vulnerable family members

Good estate planning ensures your intentions are clear and legally protected.

How does a Power of Attorney fit into estate planning?

A Power of Attorney is a key part of estate planning because it covers decisions during your lifetime, especially if you become unable to make choices yourself.

A Lasting Power of Attorney (LPA) lets you legally appoint trusted people to make decisions about:

1. Property and Financial Affairs – banking, investments, bills, property sales.
2. Health and Welfare – medical care, daily routines, and life-sustaining treatment.

Without an LPA, your family cannot automatically step in, even if you are married or have adult children.

Why is a Power of Attorney important for future financial protection?

An LPA ensures that:

• Your financial decisions follow your values
• Someone you choose manages your investments and property
• Bills, mortgages, and care fees are handled seamlessly
• Your estate is protected from financial mismanagement

Without an LPA, your loved ones must apply to the Court of Protection, which is expensive, stressful and can take months.

Does having an LPA replace the need for a Will?

No. A Power of Attorney and a Will serve different purposes:

• An LPA covers your lifetime decisions
• A Will covers what happens after you die

Both documents work together to provide complete protection.

When should someone put an LPA in place?

Ideally as early as possible. LPAs can only be made, often using a service like Power of Attorney Online, while you have mental capacity. Many people now set them up:

• When writing or updating their Will
• After buying property
• Following a medical diagnosis
• When starting a family
• As part of pension and tax planning

The earlier an LPA is in place, the more control you retain.

Who should you appoint as your attorney?

Choose someone who is:

• Trustworthy
• Organised
• Financially responsible
• Willing to act in your best interests

You can appoint more than one attorney and specify whether they act jointly, jointly and severally or a combination of both.

How do estate planning and LPA work together to protect your future?

Together, they create a complete plan:

• The LPA protects you during life
• The Will protects your estate after death
• Tax planning minimises costs for your beneficiaries
• Clear instructions reduce stress and disputes

Estate planning is about control, clarity and peace of mind and a Power of Attorney is one of its strongest foundations.