A recent report, conducted by Co-op Legal Services, has found that 79% of respondents over the age of 45-years have not made a lasting power of attorney (LPA) because they do not completely trust their younger relatives to make financial decisions on their behalf when and if they were to lose capacity, with 35% claiming they have no intention of creating an LPA at all.
The report also found that 74% of those aged between 65 and 74-years-old have so far failed to make a Lasting Power of Attorney, with worryingly 67% of those over 75-years-old have not made a Lasting Power of Attorney, entrusting their loved ones to make their financial decisions when and if they lose capacity.
Overwhelmingly, the older generation feels as though they are unable to trust their younger relatives with their financial decisions as they age.
56% of people aged over 45-years-old did not feel they could trust their loved ones to make financial decisions for them. 14% felt their loved ones are inadequately managing their own finances and would, therefore, struggle to look after the finances of another person.
11% fear that the Deputy or Attorney they appoint would borrow money without returning it if an LPA was made.
Overall, 29% would not trust a friend to represent them through an LPA, 18% would not trust their child and 19% would not trust their siblings to take control of their finances should they lose capacity.
The 37% of adults claiming that they intend to make an LPA to ensure their express wishes and financial obligations are met if they were to lose capacity will need to ignite their trust in the younger generation, they currently perceive to be irresponsible and untrustworthy.
At Redwood, we absolutely believe that appointing your nearest and dearest, be that family or friends really is the best course of action in the vast majority of cases. We find the concerns and mistrust can be mitigated by including everyone in the conversations from the very outset, so everyone has clarity about a Clients wishes and more importantly their accountabilities for implementing those wishes when required. Our passion is working with and helping multiple generations to Grow, Protect & Enjoy the family wealth.
The alternatives are doing nothing and allowing the authorities to decide what is best, or appointing a Professional Attorney. Both of this we would always strongly recommend against. A Professional appointed as your Attorney cannot be removed unless you make a new LPA or through a court order. They will find many and varied reasons to charge your Estate ongoing fees and charges, eroding your family wealth.
Redwood is one of the Souths’ leading Pensions, Investments, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning and Probate, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!, Call us on 01489877 547 or Email firstname.lastname@example.org to book a FREE Initial Meeting with us to review your financial planning needs.