The increase of Lasting Powers of Attorney

Most people understand that making a Will can provide peace of mind that their wishes will be followed.  However Lasting Powers of Attorney (LPAs) are just as important yet are often-overlooked. Statistics show that an estimated 40% of the adult population has a Will in place, but less than 1% has an LPA. In an increasingly complex society, planning for the unexpected is not just prudent but essential.

An LPA allows individuals to choose a person(s) they trust to act as their Attorney during their lifetime to make decisions on their behalf and if they require assistance in managing their affairs. LPAs therefore serve as a crucial, indispensable tool for ensuring that individuals maintain control over who looks after their affairs even in the face of unforeseen circumstances.

The two different types of LPAs are in relation to Property and Financial Affairs and Health and Welfare. The majority of people assume LPAs are only for those who are elderly and associate the documents more with a loss of mental capacity due to dementia.  Indeed 45% of people aged 45 and over know nothing about LPAs. However, LPAs are not just important for the elderly but for anyone as every 90 seconds someone is admitted to hospital in the UK with an acquired brain injury.

Many clients will choose to make an LPA alongside making a Will and there are real benefits to this and the discussions can take place all in one go. Making a Will allows your wishes to be followed upon death; putting LPAs in place allow your assets to be looked after by someone you trust and also accounts for life events which you may not be prepared for. It appears that many are now recognising the importance of setting up LPAs as 53% of people who know someone with an LPA are interested in setting one up for themselves in the future. It is apparent that LPAs are now more than ever on the rise.

More than one million LPAs were registered by the Office of the Public Guardian last year – an increase of 37% on the previous year and the highest annual total on record. The rise is very encouraging but there still remains vast numbers of people who have not put an LPA in place. LPAs should be considered an essential part of everyone’s long-term planning.

Put simply, five reasons to make an LPA are:

• Decisions are to be made in your best interest – your attorney(s) can be those who you really trust and make decisions in your best interests;
• It makes things easier for your relatives should anything happen to you – Next of kin do not always get the final say;
• It provides protection for the future and helps avoid the risk of leaving it too late – giving peace of mind not only to you but to your loved ones;
• Legal complications can be avoided – without an LPA, loved ones may need to apply to the court to become deputies, a process that can be very time-consuming, costly and emotionally draining; and
• Most importantly, you choose those who you want to put in charge of making decisions which affect you – someone you trust rather than a potential stranger. You can have up to four Attorneys acting on your behalf.

If you have questions regarding Powers of Attorney, please get in touch with Ann-Marie Aston on 0121 733 800 or [email protected].