- On July 10, 2019
LASTING Powers of Attorney (LPAs) are under-used and not having one can cause “stress and concern” to family members, according to financial advice group Chase de Vere.
Although there has been a 6% increase in the number of people using LPAs between 2017 and 2018, the firm says far more people could benefit from using one.
Robin Bailey, Chase de Vere spokesman, said: “Those who don’t have a LPA risk causing extra stress, concern and expense for their family and friends, while their own wishes about their finances or health might not be taken into consideration.
“Most people don’t have a LPA because they don’t realise how important it is and how emotionally draining it can be for others if there isn’t a LPA in place when it is needed.”
However, he said that it was “positive news” that more than 800,000 LPAs were implemented last year.
“But this is just the tip of the iceberg in terms of how many people should have an LPA. To put this into context, The Alzheimer’s Society says that there are 850,000 people with dementia in the UK, including 1 in 6 people aged over 80,” he added.
According to the firm, there are several reasons why people don’t have an LPA, including:
I don’t need one
A Power of Attorney may sound complicated and aimed at the wealthy. However, financial decisions could be as simple as who can operate a bank account or pay bills, which can affect anyone across the wealth spectrum.
They’re too expensive
LPAs are less expensive than you think. The team at Family Estate Planning can guide you through the process from start to finish.
It can wait
While some clients may think there is no hurry, LPAs can only be taken out by somebody who has the capacity to do so. If they lose that capacity, then it’s too late to take one out and their financial and healthcare affairs will become the responsibility of the Court of Protection.
It doesn’t matter who is appointed attorney
Clients should take great care in deciding who to appoint to avoid cases of financial abuse or a potential family conflict in the future. Clients need to decide whether to have more than one attorney and if so, whether they will act jointly to make decisions.
You can read more about creating Lasting Powers of Attorney with our straightforward guide.
Family Estate Planning offers a free, no-obligation initial consultation to discuss your estate planning needs. We can talk you through the different types of Powers of Attorney and how they might be useful depending on your specific circumstances.
Email email@example.com or call Andy on 07984 013533.