New research from within the financial services industry reveals that more than three quarters of adults over 40 have yet to arrange a Lasting Power of Attorney, or LPA. This is a legal document that enables you to appoint someone you trust to make financial or health decisions on your behalf if you become unable to do so yourself.
In England and Wales, there are two types of Lasting Power of Attorney: one for property and finances, and another for health and welfare. Scotland and Northern Ireland operate slightly different systems but offer similar protections. It is fairly simple to make a Lasting Power of Attorney online, either doing it yourself or with the help of a professional service like https://powerofattorneyonline.co.uk.
Why are people putting it off?
This high proportion and the explanations given by the survey’s respondents illustrate that millions of people are currently unprotected through a combination of misconception and procrastination. Of those who haven’t arranged an LPA, almost a third said it was because they still have full mental capacity, while others admitted they either had not thought about it or did not believe it was necessary because they are in good health. Other common reasons included cost and a lack of urgency.
Catch-22?
The conundrum that is going unrecognised is that an LPA can be set up only while an individual has mental capacity. They haven’t made one because they don’t need it now, but if they wait until they do need it, they will no longer be competent to make one.
