Despite the growing awareness of future planning, a surprising 80% of people over the age of 55 in the UK do not have a lasting power of attorney – LPA – in place. This legal document enables a trusted person to make decisions on your behalf if you become unable to do so; however, many people delay setting up an LPA or avoid it altogether.
Lack of awareness
Many people are unaware of what a lasting power of attorney is or why it is important. There is a common misconception that LPAs are only needed later in life or only for those already facing health issues. In reality, anyone could lose mental capacity. Without an LPA, no one has the automatic legal right to make decisions on your behalf, not even a spouse or child.
Avoidance of difficult topics
Talking about incapacity, illness, or death can be uncomfortable. As a result, many people avoid conversations about future care or financial planning. There is also a sense of ‘it won’t happen to me’ or a belief that there is plenty of time to think about it.
Cost and complexity
Some people are put off by the perceived complexity or cost of creating an LPA. While it is true that there are fees involved, this is relatively modest compared to the stress and expense families may face without one.
A UK power of attorney allows someone you trust to make financial or health decisions if you are unable to. Solicitors often recommend setting up a UK power of attorney alongside writing a will. It is not possible to set up a power of attorney for someone who has lost mental capacity; instead, members of their family will have to apply to the Court of Protection to be appointed as their deputies.
Is there any crossover with a will?
Many assume that writing a will is enough, but a will only takes effect after death. An LPA is for while you are alive and unable to make your own decisions. This document serves a very different purpose.