What happens to your money when you can no longer manage it yourself

If illness or an accident left you unable to manage your money, who would deal with your bills, savings and investments?

You may assume that your partner or another family member could simply take over. However, being your spouse, civil partner or next of kin does not automatically give someone authority to manage your individual financial affairs.

Putting suitable arrangements in place can help someone you trust support you and give your family greater clarity at a difficult time.

Planning ahead gives you a choice

Needing support with your finances is not something that only arises later in life. Illness, injury, or unexpected circumstances can mean that help is needed much sooner, whether on a temporary basis or over the longer term.

Planning ahead while you are still able to make your own decisions allows you to choose who would act on your behalf and helps to ensure that those closest to you understand your wishes and priorities.

In England and Wales, a lasting power of attorney, or LPA, is one way to put this authority in place. Scotland and Northern Ireland have different arrangements, so it is important to use the process that applies where you live.

What does a lasting power of attorney do?

A lasting power of attorney, or LPA, is a legal document that allows you to appoint one or more people, known as attorneys, to make decisions on your behalf.

There are two types in England and Wales:

Property and financial affairs LPA

A property and financial affairs LPA can cover matters such as managing bank accounts, paying bills, dealing with investments and selling property. Once registered, it can also be used while you still have mental capacity, with your permission and subject to its terms.

Health and welfare LPA

A health and welfare LPA can cover decisions about medical care, daily routines and where you live. It can only be used when you lack the mental capacity to make the particular decision yourself. Authority over life-sustaining treatment must be expressly granted.

You must have the necessary mental capacity when making an LPA, and it must be registered with the Office of the Public Guardian before it can be used.

Arranging it well before it is needed can help avoid difficulties later.

What happens without one?

If you lose mental capacity without suitable arrangements in place, someone may need to apply to the Court of Protection for authority to manage your financial affairs.

This can involve additional time, costs and ongoing responsibilities. It may also mean that the person appointed is someone you did not personally choose.

The position depends on the decisions involved and any existing arrangements. For example, benefits may be managed through a separate Department for Work and Pensions appointee process. However, this does not provide general authority over your savings, investments or property.

Choosing someone you trust

An attorney should be someone who is willing to take on the responsibility, understands your wishes and can make decisions in your best interests.

Anyone appointed as an attorney must satisfy the applicable eligibility criteria. For instance, they must be aged 18 or over, and individuals who are bankrupt or subject to a debt relief order cannot act under a Property and Financial Affairs LPA.

You can appoint different people for financial and welfare decisions. You can also name replacements in case an attorney becomes unable to act. If appointing more than one person, consider carefully how they should make decisions together.

Discuss your preferences with them, including your financial commitments, care wishes and the things that matter most to you. These conversations can make their responsibilities clearer.

Make your finances easier to manage

A useful next step is to keep an up-to-date record of your accounts, pensions, investments, insurance policies and important contacts, stored securely.

Review your will and consider whether your finances could be made easier to administer. Combining accounts or pensions may sometimes help, but it is important to check for charges, lost benefits or other disadvantages before making changes.

Your financial plan can also consider how future care needs or changes in living arrangements might affect your income and savings.

Getting help from a financial adviser

Your Continuum adviser can help you review your financial arrangements, consider potential future needs and identify where specialist legal support may be appropriate.

If you already have a lasting power of attorney, check that it still reflects your wishes and that the people you have appointed remain willing and able to act.

Speak to your Continuum adviser about how these arrangements fit into your wider financial plan.

Dementia surveillance factsheet

Primary Care Dementia Data, February 2026 – NHS England Digital

This article is intended for general guidance only and is based on the opinion of Continuum it does not constitute financial advice. Individual circumstances vary, and you should consider seeking advice from a regulated financial adviser before making any financial decisions.

The Financial Conduct Authority does not regulate taxation and trust advice or will writing and legal advice.

A pension is a long-term investment; the fund value can go down as well as up and this can impact the level of pension benefits available. Pension savings are at risk of being eroded by inflation.