Last updated: August 2026

Read time: five minutes

One morning, you’re driving to work, walking the dog or dropping the children at school. That afternoon, an unexpected accident or serious illness leaves you unable to make decisions or communicate your wishes. Or it may happen gradually because of dementia or another progressive condition. In legal terms, this is called ‘losing capacity’.

Who would be able to access your money, pay your bills, run your business or make decisions about your health if you couldn’t do it yourself?

What happens to your money

‘My spouse or children could just take over’

Many people assume close family members automatically have authority to act on their behalf. In reality:

• Banks cannot simply share access to accounts.
• Utility companies may refuse to discuss accounts.
• Investments may be inaccessible.
• Business decisions may be delayed.
• Family members may need to apply for access through formal legal processes.

Being married or being someone’s adult child does not automatically give you authority to make financial or legal decisions for them.

What happens to your bank accounts and finances

Your family would need to take on decisions on your behalf, such as managing household finances and dealing with immediate expenses.

Regular payments like a mortgage, rent, care fees, utilities, insurance, council tax and other bills might not be made if you don’t have the capacity to authorise them.

That’s because if you can’t access your bank accounts, they still remain in your name and usually family members cannot access them. While they may be able to access joint accounts, it is unlikely that your loved ones can access your savings or investments without legal authority.

They would need to pay bills and to do this, could need access to your bank account, as well as knowing where important documents are and ensure that direct debits and mortgage payments are covered.

What happens if you run a business?

If you run your own business, and for example, had a stroke, would anyone else have the authority to manage the business bank account? If not, then contracts could be delayed, employees might not be paid and bills might not be paid.

What about caring responsibilities?

Planning is about more than money. You may look after young children, an elderly parent, a disabled adult child or a vulnerable relative.

If you weren’t able to care for them, who would step in? Would they know what support is in place? And would they know your wishes?

Decisions about your health

‘My next of kin can decide for me’

If you were seriously ill in hospital, you might think that your next of kin can influence what doctors decide to do. This is not the case. Although doctors will consult your loved ones, ultimately by law they are obliged to make decisions based on what they think is in your best interests, unless you have a Health and Welfare Lasting Power of Attorney (LPA).

What is a Lasting Power of Attorney and why does it matter?

An LPA allows you to appoint trusted people to make decisions on your behalf if you cannot do so yourself. There are two types – one for health and welfare, and the second for property and financial affairs. You can find out more about an LPA here

Please note, the above relates to England and Wales. In Scotland, you can make a Continuing Power of Attorney and in Northern Ireland, an Enduring Power of Attorney. You can read more about these here for Scotland and here for Northern Ireland.

What happens if there isn’t an LPA?

Family members may need to apply to the Court of Protection in England and Wales, to be appointed to manage a person’s affairs. It is a complex and potentially costly process that is more expensive than an LPA. It adds extra stress at an already difficult time.

Five signs you should think about putting LPAs in place

We recommend having LPAs if you:

• own a property;
• have savings or investments;
• run a business;
• care for someone else; or
• want to choose who would act for you if needed.

You don’t need to be elderly, wealthy or seriously ill to plan ahead. A sudden accident or illness can affect anyone. While nobody can predict the future, planning ahead can make things significantly easier for the people who may need to help you.

Talk to a TEP to find an expert near you.