Planning for what matters – Part 5: Protecting vulnerable family members

Planning with care: protecting vulnerable family members in a changing world

Wealth planning is often discussed in terms of growth, transfer and preservation. Those things matter. But another part of the conversation deserves equal attention: protection.

As populations age and family lives become more complex, vulnerability is becoming a more significant issue in private client planning. That vulnerability can take different forms. It may relate to reduced capacity, dependence on others, social isolation, family pressure, financial abuse or simply the difficulty of making major decisions at stressful moments. Whatever form it takes, it reinforces the need for planning that is not only efficient, but humane and practical.

A growing issue for families

The scale of the issue is increasingly clear. WHO reports that 57 million people were living with dementia in 2021, with nearly 10 million new cases every year. Alzheimer’s Disease International forecasts dementia prevalence to keep rising sharply over the coming decades. In the UK, the Ministry of Justice reported receiving 1.41 million lasting power of attorney applications in 2024–25, an 11% increase on the previous year, which points to growing public awareness of the importance of planning ahead.

Those figures are important, but the real point is more personal. Vulnerability often develops gradually. Families may not notice the early signs of cognitive decline. An older relative may appear to be coping while becoming more dependent behind the scenes. Financial arrangements that once felt manageable may become difficult to oversee. Informal family support can work well for a time, until disagreements, geography or pressure make it harder.

When the family principal becomes vulnerable

In many families, one question matters above all others: what happens when the settlor, wealth creator or family principal becomes vulnerable?

This can be one of the most sensitive moments in the life of a structure. Very often, that individual has been the key decision-maker, the driving force behind the family’s wealth and the person holding the clearest strategic vision for the long-term financial success of the family . If their capacity changes, the issue is not only personal. It can affect governance, continuity and the family’s confidence in how decisions will be made going forward.

Decline can be difficult to identify in its early stages. It is often gradual, becoming more apparent only when impulsive or uncharacteristic decisions begin to arise. The period between first suspecting a change and having it formally recognised can be especially sensitive, particularly where the family principal continues to influence significant wealth. In that context, the presence of a trustee can provide an important safeguard, offering a buffer against rash decision-making and helping to preserve stability where the financial consequences for the wider family could otherwise be considerable.

This is one reason why earlier next-generation involvement is increasingly important. Where the next generation is brought into conversations sooner, with the right support and at the right pace, there is often greater readiness when responsibilities begin to shift. That does not mean transferring control too early. It means building familiarity, trust and understanding over time, so a transition is less abrupt if circumstances change.

In larger or more complex structures, that preparation may also need to be reflected formally within the governance framework. Thoughtful succession within protector committees, family office advisory structures, or similar decision-making mechanisms can help ensure continuity and reduce uncertainty. Nominating the next in line, clarifying future roles and considering how decisions would be taken if a family principal were no longer able to lead can all form part of sensible long-term planning.

Planning early can make a real difference

This is where good planning can make a real difference. Lasting powers of attorney, appropriate fiduciary arrangements and clearly documented wishes can all help ensure that someone’s affairs can be managed in a way that reflects their interests and intentions if they are no longer able to make decisions for themselves. GOV.UK guidance and reporting from the Office of the Public Guardian continue to stress both the importance of these arrangements and the safeguarding role that sits around them.

The challenge, as with so many private client matters, is timing. These conversations are easiest when there is no immediate crisis. Yet families often delay them because they are sensitive. Nobody wants to imply that a relative is losing independence or invite uncomfortable discussions about money and control. The result can be that protective steps are taken later than ideal.

Protection is part of good stewardship

A more constructive way to frame the issue is as part of sensible long-term planning. Putting safeguards in place is not about taking control away. Done well, it is about preserving dignity, reducing uncertainty and giving families a clearer framework if circumstances change.

That may also help reduce the risk of misunderstanding or conflict. Where authority is clearly documented, responsibilities are understood and trusted individuals are in the right roles, there is less room for confusion and less scope for exploitation. No structure can remove all risk, but thoughtful preparation can make poor outcomes less likely.

Keeping the focus on people

There is a broader fiduciary principle here too. Wealth structures are ultimately there to support people. If a plan works well on paper but fails to protect a vulnerable individual in practice, it has missed something important.

Planning with care means recognising that protection is not a secondary issue. It is part of good stewardship. And in a world where longer lives, greater complexity and changing family dynamics are becoming the norm, that kind of planning is likely to matter more, not less, in the years ahead.