Millions of well-intentioned people in the UK are helping their loved ones manage their online financial accounts, but could risk having these accounts frozen because they don’t have a Lasting Power of Attorney (LPA) in place.
Lloyds’s 2024 Consumer Digital Index (3 November 2025) suggests 1 in 5 adults – the equivalent of 11 million people – are helping others handle financial accounts online. Among the most common tasks were making payments, checking balance information and statements, and paying in cheques.
Logging into a family member’s bank account to pay essential bills might seem harmless, but it could be risky if an LPA isn’t in place. Indeed, assets may be frozen, and it could lead to disputes in the future.
The Lloyds report indicates that only 21% of people supporting loved ones with their digital finances have a formal agreement, such as an LPA.
Please note: The Financial Conduct Authority does not regulate Power of Attorney.
A Lasting Power of Attorney allows someone you trust to make decisions on your behalf
An LPA gives someone you trust the ability to make decisions on your behalf if you lose mental capacity. There are two types of LPA:
- Health and welfare, which covers decisions around areas like daily routine, medical care, moving into a care home, and life-sustaining treatment. This LPA can only be used if you’re unable to make your decisions.
- Property and financial affairs, which allows an attorney to take actions such as managing a bank account, paying bills, collecting benefits or a pension, or selling property. This LPA may be used as soon as it’s registered if permission is granted.
It’s important to note that no one has an automatic right to make decisions on your behalf, including your spouse or civil partner.
If someone could benefit from your support now or in the future, encouraging them to create an LPA could be important. It may allow you to make essential decisions on their behalf or manage their affairs when they’re in a vulnerable position.
The paperwork for an LPA cannot be signed once the person has lost mental capacity.
An LPA might not be appropriate for everyone or immediately, but considering your options early might provide you with more time to make informed decisions, including thinking about who you’d appoint as an attorney.
Without a Lasting Power of Attorney, you’d need to go through the Court of Protection
If a loved one has not created an LPA and loses mental capacity, you’d need to apply to the Court of Protection to be appointed as a deputy. Often, this process is slower and more costly than using an LPA.
As a result, it could leave your loved one in a position where they cannot make decisions themselves, and no one can do so on their behalf. This could lead to important medical decisions being delayed or financial affairs not being addressed, which might have long-term consequences.
What’s more, there’s no guarantee that the court would appoint the deputy that the individual would have chosen for themselves.
Considering your own Lasting Power of Attorney
As you help a loved one set up an LPA, it may be a good time to review your own arrangements.
You can make an LPA online or using paper forms, which must then be registered with the Office of the Public Guardian. In most cases, you’ll need to pay a £92 application fee to register each LPA.
Think carefully about who you’d like to make decisions on your behalf, and who would be comfortable with the responsibility. Choosing an attorney is an important decision, as they may have significant authority over financial or healthcare matters
You may choose more than one attorney and state whether they must make decisions together or if they can do so independently.
Scheduling time to talk to your attorneys could be useful, providing you with a chance to be clear about your wishes. Your attorney might need to make decisions about the type of treatment you receive if you’re ill or whether to sell your property if you move into care, and they may benefit from guidance from you.
While it might feel morbid to consider losing mental capacity, it could ensure your loved ones are able to support you when you need it most.
Get in touch
If you have questions about your estate plan or that of a loved one, including a Lasting Power of Attorney, we could help. Please contact us to arrange a meeting with one of our team.
Please note: This article is for general information only and does not constitute advice. The information is aimed at individuals 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 Power of Attorney.
