This content is for information purposes only. It should not be taken as financial or investment advice. To receive personalised, regulated financial advice regarding your affairs please consult your Financial Planner here at Vesta Wealth in Cumbria, Teesside and across the North of England.
We all fear the unknown, and the future is unknowable. Yet, by recognising this, it becomes possible to prepare a safety net for the “just in case” scenarios – e.g. illness or death.
This isn’t a nice topic to dwell on at first, but preparing for these realities can bring peace of mind (knowing you have a plan for them). Failure to plan could leave your family exposed both emotionally and financially.
At Vesta Wealth, we believe there are at least three crucial pillars to your “just in case” plan: your will, lasting power of attorney (LPA), and financial protection. Below, we examine these three tools in greater detail to help you get your affairs in order and rest confidently in your mind.
#1 Crafting your will
Most of us vaguely know about the importance of a will. However, 59% of UK adults do not have one. This is leaving many individuals vulnerable to the UK’s intestacy rules, which are used to administer someone’s estate if they die without a will.
These rules assume a traditional nuclear family model (husband, wife and biological children). As such, they can be especially unhelpful for cohabiting partners, blended families, or individuals with children from previous relationships.
Bear in mind that, if you die and leave behind an unmarried partner, the UK’s intestacy rules do not grant them anything from your estate. This is so even if you have lived together for years and had children together.
These problems can be addressed by creating a will, which stipulates how you want your assets to be distributed. Guardians can be nominated in this document (for children under 18), and you can assign specific gifts and choose trusted executors to administer your estate.
One great benefit of a will is conflict mitigation amongst family members. If you clearly set out your wishes, it leaves less room for grieving loved ones to squabble over “who should get what”.
#2 Creating LPA for mental incapacitation
Your will deals with your estate after you die. However, problems could arise during your lifetime if you lose “mental capacity” (e.g. due to a loss of brain function). What happens then?
Lasting power of attorney (LPA) is designed to address these kinds of scenarios. There are two main types in 2025-26, in England and Wales:
- Property and Financial Affairs LPA: This empowers your attorney(s) to manage your finances – e.g. paying bills, handling investments or selling property.
- Health and Welfare LPA: Covers decisions about your health care, daily routine and medical treatment – including end-of-life care.
Despite the rising prevalence of dementia and other conditions that affect the brain, a generous estimate is that only 20% of UK adults have set up some form of LPA. This can create huge problems for family members, who would need to apply to the Court of Protection to act on a loved one’s behalf (a costly, time-consuming and emotionally draining process).
LPA sidesteps much of this by legally empowering a trusted person to quickly step in, if needed. The payoff is peace of mind for you and other loved ones.
#3 Reinforcing your legacy with financial protection
We’ve looked at two “worst-case” scenarios (death and loss of mental capacity), but what about others, like suffering a serious illness or injury? How can you prepare for such outcomes?
Financial protection is your additional layer of safety, here. This refers to insurance policies that preserve your wealth and budget stability, such as:
- Life insurance to cover mortgage debts or replace lost income
- Critical illness cover to provide a lump sum on diagnosis of a serious illness
- Income protection to support your household if you are unable to work
Your protection plan includes other measures, such as keeping an emergency fund (e.g. 3-6 months’ worth of living costs in easy-access savings) and maintaining a clear record of your assets, liabilities and key documents.
The latter should be stored securely, with your executors and attorneys informed about how to access them. One idea is to keep an up-to-date file called “When I’m Gone” (digital or physical), which provides vital details such as passwords and logins for your surviving family members – potentially saving them hours of administrative burden.
Final Thoughts
Putting your affairs in order is not a one-off exercise, and it is not merely for “the old”. All ages can benefit, and most individuals will require regular reviews as their circumstances evolve.
Much of this can be done independently. However, a financial planner can help integrate these steps into a broader strategy for wealth preservation and intergenerational planning.
We hope this content gave you more clarity. To discuss your own financial plan, please get in touch to arrange a free, no-commitment consultation with an adviser here in Cumbria.
Your capital is at risk. Investments can go down as well as up. Past performance is not indicative of future results. Tax treatment depends on individual circumstances and may change. Content is for information only and not investment advice. Any decision to invest is the reader’s own. Diversification is key to managing risk. Market volatility affects investment values. Inflation erodes savings. Liquidity risks may prevent quick access to funds.