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Powers of Attorney

Legal • Powers of Attorney

Planning for Decisions If You Cannot Make Them Yourself 

Estate planning is not only about what happens after death. It also involves preparing for the possibility that, through illness, injury or age-related decline, a person may no longer be able to make decisions for themselves. 

A Lasting Power of Attorney (LPA) is a legal document that allows someone to appoint trusted individuals to make decisions on their behalf if they lose mental capacity. Without an LPA in place, family members may need to apply to the Court of Protection, which can be time-consuming, costly and stressful. 

As part of its Estate Planning and Legal Services framework, Hoxton Wealth UK supports clients in understanding how Powers of Attorney fit within a wider financial and estate strategy. 

Learning Resources

What Is a Lasting Power of Attorney?

In England and Wales, there are two main types of Lasting Power of Attorney: 

1. Property and Financial Affairs LPA 

This allows appointed attorneys to make decisions about financial matters, such as: 

  • Managing bank and savings accounts 
  • Paying bills and mortgages 
  • Handling investments 
  • Buying or selling property 
  • Managing pensions and income 

This type of LPA can be used while the person still has capacity, if they choose, or only if capacity is lost. 

2. Health and Welfare LPA 

This allows attorneys to make decisions about: 

  • Medical treatment 
  • Care arrangements 
  • Living arrangements 
  • Life-sustaining treatment decisions (if specifically authorised) 

A Health and Welfare LPA can only be used once capacity has been lost. 

Different arrangements apply in Scotland and Northern Ireland, where separate legal documents exist under local legislation. 

Why Powers of Attorney Matter

International families often face challenges that do not arise in purely domestic planning. 

These can include: 

  • Holding assets in multiple countries 

  • Family members living in different jurisdictions 

  • Exposure to more than one tax system 

  • Currency considerations 

  • Differences in legal frameworks 

A trust can provide a central structure through which these elements are managed. Rather than dealing with each asset or jurisdiction separately, a coordinated approach can help bring clarity and consistency. 

Common objectives include: 

  • Managing wealth across generations and locations 

  • Providing for family members in different countries 

  • Structuring how and when beneficiaries receive assets 

  • Supporting long-term financial planning across borders 

Choosing Attorneys 

An attorney should be someone trustworthy, capable, and willing to act responsibly. 

Clients may choose: 

  • A spouse or partner 
  • Adult children 
  • Other family members 
  • Trusted friends 
  • Professional attorneys 

More than one attorney can be appointed, and they can act jointly, jointly and severally, or in combination, depending on how the document is structured. 

Careful consideration should be given to: 

  • Financial capability 
  • Geographical proximity 
  • Potential conflicts of interest 
  • Family dynamics 

Clear instructions and guidance within the LPA can help attorneys understand personal preferences. 

Powers of Attorney and Financial Planning 

An LPA works alongside broader estate and retirement planning. 

For example, if an individual holds: 

  • Pension arrangements 
  • Investment portfolios 
  • Property assets 
  • Business interests 

An appointed attorney may need to manage these during periods of incapacity. Without appropriate authority, financial plans may stall or require court intervention. 

As highlighted in our broader retirement planning guidance, financial strategies often span decades. An LPA ensures continuity if the unexpected occurs. 

Similarly, when estate planning structures such as trusts are in place, attorneys may need authority to interact with trustees, advisers, and financial institutions. 

Registration and Validity 

An LPA must be: 

  • Completed correctly 
  • Signed in the required order 
  • Witnessed appropriately 
  • Registered with the Office of the Public Guardian before use 

Registration can take several weeks. It is generally advisable to register the document soon after completion rather than waiting until capacity issues arise. 

An LPA can only be created while the individual has mental capacity. Once capacity is lost, it is too late to put one in place. 

Reviewing and Updating an LPA 

While LPAs do not expire, they should be reviewed periodically, particularly if: 

  • An appointed attorney dies or becomes unsuitable 
  • Relationships change 
  • Circumstances or wishes evolve 

Any revocation or replacement must follow the correct legal process. 

Common Misunderstandings 

“My spouse can automatically make decisions for me.” 

Marriage or civil partnership does not automatically grant authority to manage finances or make medical decisions. 

“I am too young to need an LPA.” 

Incapacity can arise at any age. Many people put LPAs in place well before retirement as part of responsible planning. 

“An LPA gives someone unlimited power.” 

Attorneys must act in the donor’s best interests and follow strict legal duties. Abuse of power can result in investigation and legal consequences. 

How Hoxton Wealth UK Supports Clients 

Hoxton Wealth UK helps clients consider Powers of Attorney within the context of their overall financial and estate planning strategy. This includes: 

  • Reviewing existing financial arrangements 
  • Identifying areas where decision-making authority may be required 
  • Coordinating with legal professionals for drafting and registration 
  • Ensuring LPAs align with retirement, investment, and estate structures 

Hoxton Wealth UK does not provide standalone legal advice unless appropriately authorised. Legal drafting must be carried out by qualified professionals. 

The firm’s role is to ensure financial continuity planning sits alongside wealth management and estate planning objectives. 

FAQs

Getting Started 

Putting Powers of Attorney in place is a practical step that supports long-term financial stability and family clarity. 

As part of its Estate Planning and Legal Services offering, Hoxton Wealth UK helps clients ensure that financial structures, retirement planning, and legal safeguards work together cohesively. 

To arrange a confidential discussion about Powers of Attorney and estate planning, please contact Hoxton Wealth UK. 

Important Information

This content is provided for general information only and does not constitute legal advice or a personal financial recommendation. The suitability of any arrangement depends on individual circumstances. 

Lasting Powers of Attorney must be drafted and registered in accordance with applicable law. Hoxton Wealth (UK) Ltd, Company No. 11180844, is authorised and regulated by the Financial Conduct Authority (FRN 586130). Registered office: 101 New Cavendish Street, London W1W 6XH. 

Legal

How can Hoxton help

Various options are available to create a Will, from DIY Will kits to consulting a solicitor, obtaining a “free” Will from your bank or generating one online. However, each method comes with risks and may not be appropriate for your situation. An incorrectly drafted Will can result in unintended consequences, causing complications for your loved ones after you’re gone. Don’t take chances with the fruits of your entire life’s labour – trust Hoxton Wealth’s expertise in crafting a Will that fulfils your current and future needs. Get in touch today. 

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