Are You Risking Your Financial Welfare By Not Using A Power of Attorney?

HALF of all adults are not aware of Lasting Powers of Attorney (LPAs) – an essential tool when it comes to help families protect their loved ones when they can no longer cope.

According to new research from mutual insurer Royal London, of those that are aware of LPAs, only one in three think they actually understand what they do.

Other key points from the study are:

• Most people have only ever heard of a financial Power of Attorney (76%) even though there are two types, the other being a Lasting Power of Attorney for health and care decisions.
• A clear gender divide – 23% of women say they have discussed setting up a Power of Attorney compared to just one in six men.
• Some 18% of men who haven’t discussed setting one up were also more likely than woman (8%) to say they did not think they would ever need one.

The study also found there was a lack of discussion on the subject, with almost half (48%) of adults not thinking they are at an age when they need to think about LPAs, despite three in 10 (34%) being over 55.

One in five (19%) said the reason for not discussing them was because they did not want to think about being unable to manage their own affairs.

Mona Patel, consumer spokesperson for Royal London, said: “It may be uncomfortable to think about not having the mental capacity to make decisions, but it is important to plan in case this happens.

“While official figures show nearly 800,000 registrations were submitted last year in England and Wales, it’s concerning that only a third of people who have heard of a Lasting Power of Attorney fully understood how it works.

“Appointing a family member or trusted friend to make financial or welfare decisions on your behalf stops the responsibility falling to the state and loved ones then having to apply to the Court of Protection, which can be emotionally difficult, time consuming and expensive.”

Our guide to Lasting Powers of Attorney gives you more information about this important part of estate planning.

For more information about our Wokingham-based affordable Lasting Power of Attorney service, please contact Andy Pulford on 07984 013533 or email contact@familyestateplanning.co.uk.