There’s all sorts going on with the Office of the Public Guardian; internal process changes, new
scanners and the long muted MLPA. The industry continues to question delays at the Office of the
Public Guardian, whether new online processes will deliver meaningful short-term improvements,
and whether a digital-first system risks excluding some of the most vulnerable people — particularly
those without internet access or professional support.
However, one point should unite us all: far more people need to have a lasting power of attorney
(LPA) in place, and they need to do so much earlier. While it was encouraging to see the Ministry of
Justice confirm that LPA registrations in Q1 2023 were up 33% on the previous year, it was deeply
concerning to learn that 54% of those LPAs were created for individuals aged over 75.
This is troubling because we firmly believe that the financial plans developed for forward-thinking
clients — typically individuals and couples in their 50s — should always be underpinned by an LPA.
When LPAs are only being established after the age of 75, it suggests a reaction to crisis rather than
the foresight and proactive planning we advocate.
A true financial plan must address the “what if” scenarios associated with a loss of mental capacity.
This is essential not only from a short-term, practical perspective, but also in terms of succession
planning and intergenerational wealth planning over the medium to long term.
We do not need to be reminded that clear guidance within a professionally-drafted LPA can prevent
difficult decisions and avoid family conflict later on. LPAs also allow for more complex needs to be
managed, such as releasing funds for medical treatment or long-term care, whether at home or in
residential settings. Crucially, they enable attorneys to work alongside financial planners to ensure
the overall plan remains on track.
Establishing an LPA earlier, as part of the wider financial planning process, also creates an
opportunity to involve the next generation in intergenerational wealth planning. It encourages early,
open conversations and helps adult children — where they are appointed as attorneys — to
understand both the responsibilities of the role and the decisions they may one day need to make.
For true financial planners, this approach provides reassurance for everyone involved: clients as
donors, their children as attorneys, and the professionals supporting them. It also enables attorneys
to make informed investment decisions in collaboration with financial planners, with the aim of
preserving and growing wealth.
In some cases, this may mean taking on greater investment risk to generate returns to fund care. In
others, it may involve reducing risk to protect capital and maximise what can ultimately be passed on
to beneficiaries.
Finally, donors should consider including wording in their LPA allowing their will to be disclosed to
their attorneys. This ensures that attorneys, supported by financial planners, can make financial —
and particularly investment — decisions that align with the wishes expressed in the will.