Why Plan Now
Most of us know we should have a Will. Far fewer of us actually have one, and even fewer have set up an LPA. It’s one of those things that’s easy to put off, until something happens that makes you wish you hadn’t.
The reality is simple: without these documents in place, decisions about your estate, your finances, and your healthcare could be taken entirely out of your hands, and given to people you wouldn’t have chosen, or to the courts.
Don't Leave It to Chance
A few hours of planning now can spare your loved ones considerable stress and heartache at an already difficult time.
What is a Will? Why Do You Need One?
A Will is a legally binding document that sets out exactly what should happen to your money, property and possessions when you die. It lets you name the people who should inherit from you (your beneficiaries), appoint someone to manage your estate (your executor), and make any other specific wishes known, from funeral preferences to guardianship of children.
Without a valid Will, none of that is guaranteed.
What Happens If You Die Without a Will?
Dying without a Will means dying ‘intestate.’ In that case, the Laws of Intestacy, not your own wishes, determine who gets what. These rules are rigid and often produce outcomes people would never have chosen:
- Unmarried partners inherit nothing, regardless of how long you’ve been together or whether you share a home
- Estranged relatives could inherit from your estate
- A separated spouse (not yet divorced) may still inherit as though your relationship were intact
- Your family may be forced to sell the family home to divide up the estate fairly between beneficiaries
- Children may receive assets in equal shares rather than in the way you would have intended
It’s a situation that causes enormous stress for families at the worst possible time, and it’s entirely avoidable with a Will.
What Can a Will Include?
A well-drafted Will gives you control over far more than just who inherits your money. It can set out:
Who receives specific items, property or sums of money
Who you’d like to act as guardian for any dependent children
Who you appoint as executor (the person responsible for carrying out your wishes)
Charitable donations you’d like to make
Instructions around your funeral or burial preferences
Whether you’d like to set up any trusts for the benefit of loved ones
When Should You Update Your Will?
We recommend reviewing your Will every five years, and whenever a significant life event occurs. Key triggers include:
Marriage — which automatically revokes an existing Will in England and Wales
Divorce — which does not automatically revoke your Will, meaning an ex-spouse could still inherit
New family members you’d like to add as beneficiaries
The death of a beneficiary or executor named in your current Will
Significant changes to your assets, such as buying or selling property
Taking out an equity release plan, as this impacts the value of your estate
If your existing Will is out of date or needs several changes, it’s often simpler and safer to start fresh. Our specialists can advise on the best approach for your circumstances.
What Is a Lasting Power of Attorney (LPA)?
A Lasting Power of Attorney is a legal document that lets you appoint one or more trusted people, known as your attorneys, to make decisions on your behalf if there’s ever a time when you’re no longer able to do so yourself.
This might be due to dementia, a stroke, a serious accident, or any other condition that affects your mental capacity. The important thing to understand is: this can happen to anyone, at any age. An LPA isn’t just for older people.
What Is a Lasting Power of Attorney (LPA)?
Many people assume that a spouse, partner or close family member would automatically be able to step in and manage things if something happened to them. They wouldn’t.
Even in a marriage. Even with a joint bank account. Your partner has no automatic legal authority to access your finances, manage your property, or make decisions about your care if you lose mental capacity. Without an LPA, the only route available is an application to the Court of Protection, a process that can take months, cost thousands of pounds, and still may not result in the person you’d have chosen being appointed.
An LPA puts that authority where you want it: with the people you trust.
Types of LPA - Property and Financial Affairs LPA
This allows your chosen attorney to manage your finances, either at a time of your choosing, or specifically if you lose mental capacity. It covers decisions such as:
- Managing bank accounts and paying bills
- Collecting income, pensions and benefits
- Buying or selling property
- Making investment decisions
- Requesting further drawdowns from an equity release plan
Important for equity release customers: If you have, or are considering, a drawdown lifetime mortgage, we strongly recommend putting a Property and Financial Affairs LPA in place. Without one, if you lose capacity (or if you have a joint plan and one of you does), no further drawdown requests can be made. A valid LPA allows your attorney to act on your behalf, keeping your plan, and your finances, running smoothly.
Types of LPA - Health and Welfare LPA
This allows your chosen attorney to make decisions about your personal care and medical treatment, but only in the event that you lose capacity. It can cover:
- Where you live and receive care
- Day-to-day decisions about diet, medication and daily routine
- Whether to consent to or refuse specific medical treatments, including life-sustaining treatment
- Who is permitted to visit you
Without this document, those decisions rest with medical professionals who will act in your best interests but may not know your personal wishes. Appointing your own attorneys ensures the people who know you best are the ones making decisions for you.
Who Can Be an Attorney?
The choice is entirely yours. Your attorney must be over 18, and for a Health and Welfare LPA, cannot be a paid care worker. Most people choose a spouse, adult child, close friend or sibling, but you can also appoint a solicitor or other professional (who may charge for their time).
A few things to note:
- You can appoint more than one attorney on each LPA
- You don’t have to appoint the same people on both
- For a Property & Financial Affairs LPA, your attorney cannot have been declared bankrupt
- An LPA must be registered with the Office of the Public Guardian (OPG) before it can be used, registration currently takes up to 20 weeks, which is why acting sooner rather than later matters
Will
When It Applies: After you die
What It Covers: Distribution of your estate
Who acts: Your executor
Activated by: Your Death
LPA
When It Applies: During Your Lifetime
What It Covers: Financial and / or healthcare decisions
Who Acts: Your attorney
Activated By: Loss of mental capacity, or your choice, for financial LPA.
Do I need both a Will and an LPA?
Yes, and here’s why they’re not the same thing.
A Will and an LPA serve completely different purposes, and one cannot substitute for the other:
Think of it this way
your Will protects your loved ones after you’re gone. Your LPA protects you, and your loved ones, while you’re still here.
Many people create a Will and assume they’re fully covered. They’re not. A Will is useless if you’re incapacitated but still alive. And an LPA ceases to have any effect the moment you die, from that point, your executor takes over under the terms of your Will.
Together, these two documents provide complete, continuous protection, whatever the future holds.
How does it work?
Getting your Will and LPAs in place is more straightforward than you might expect.
We’ve partnered with an independent Will and LPA specialist to provide you with an expert Will writing and LPA service.
We’ll take the time to understand your situation, your family circumstances and your wishes. There’s no pressure to proceed, and no jargon, just a clear, honest conversation.
Your specialist will prepare your Will and/or LPA documents, tailored precisely to your wishes and circumstances.
You’ll have the chance to review everything carefully before signing. Your Will must be signed in the presence of two independent adult witnesses (who cannot be beneficiaries). Your LPA will also require signatures from your chosen attorneys and a certificate provider.
Once signed, your LPA documents are submitted to the Office of the Public Guardian for registration. This currently takes up to 20 weeks, another reason not to delay.
Your documents are securely stored, and you’ll have access to copies whenever you need them.
Wills and LPA Frequently Asked Questions
Costs vary depending on whether you need a single Will or mirror Wills (for couples), and how straightforward your circumstances are. All fees will be provided upfront before you commit to anything. Get in touch for a quote.
There are two costs to be aware of: the fee for your legal adviser to prepare the documents, and the government registration fee charged by the Office of the Public Guardian, which is currently £82 per LPA (reduced if you’re on certain benefits). All fees will be set out clearly at the outset.
Once your documents are prepared and signed, registration with the Office of the Public Guardian currently takes up to 20 weeks. The preparation stage itself is typically much quicker. This is why we recommend acting sooner rather than later, an LPA can only be made while you have mental capacity.
An LPA can only be made while you have sufficient mental capacity to understand what you’re signing and what authority you’re granting. If you have concerns about your own or a loved one’s capacity, speak to us as soon as possible, the sooner an LPA is set up, the better.
If someone has already lost mental capacity and no LPA is in place, the only option is to apply to the Court of Protection for a Deputyship Order. This process is significantly more expensive, more time-consuming, and more stressful than setting up an LPA in advance, and the outcome isn’t guaranteed.
You’re not legally required to use a solicitor, but professional advice is strongly recommended, particularly for LPAs, where small errors in the signing process can result in rejection by the Office of the Public Guardian. Our partner specialises in exactly this.
Our will writing and LPA services are available across the UK, however they may be known under a different name.
If you have an equity release plan, particularly a drawdown lifetime mortgage, having a Property & Financial Affairs LPA in place is essential to protect your ability to access further funds in future. Our advisers can talk you through how these documents work together.
Ready to Get Started?
Don’t put it off. A Will and Lasting Power of Attorney are two of the most important documents you’ll ever put in place, for yourself, and for the people who matter most to you.
Speak to the team at Bower today. We’ll connect you with [Partner Name] and make sure you get exactly the right advice for your circumstances, with no pressure and no obligation.
IMPORTANT TO KNOW
At Bower Home Finance, we will understand your unique circumstances and advise you to ensure you are receiving the best plan to meet your objectives. There are plans that allow you to make voluntary repayments and move home, subject to lender criteria. However, early repayment charges may apply in certain circumstances.
Bower Home Finance provides independent, impartial whole of market equity release advice with an award-winning customer service experience. Initial advice is provided at no cost to you and without obligation. Only if you choose to proceed and your plan completes, would a typical advice and administration fee of £1,695 be payable.
Equity release requires paying off any existing mortgage. Any money released, plus accrued interest to be repaid upon death, or moving into long-term care. Equity release will reduce the value of your estate and your entitlement to means-tested benefits now or in the future, and impact long-term care funding. If you are considering equity release, we strongly recommend that you read our Equity Release page carefully and talk to one of our specialists before deciding if you wish to proceed.
To find out more about any of the products and the service we provide, please call us on freephone 0800 411 8668, request a call back, email us, or use our live chat on our website.
Please be aware that equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. All features and risks are thoroughly explained in your free personalised illustration.