Investors should appoint a power of attorney – here’s why
According to the latest research, investors could be putting their families under additional stress and expense because they have not appointed a lasting power of attorney (LPA) to manage their estate.
With an LPA, investors can appoint a trusted family member, friend or professional adviser to make decisions for them in the event that they lose the capacity to make these decisions for themselves.
An LPA can be set up in respect of personal health and welfare or property and financial affairs, or both. In both cases, you can appoint one or more attorney, as well as replacement attorneys.
According to official Government statistics, more than 800,000 LPAs were put in place last year, but experts have warned that this number is only a small proportion of the people who require one.
Figures from the Alzheimer’s Society state that there are currently 850,000 people in the UK that are living with dementia, with that figure expected to rise to more than 1 million by 2025.
If an individual does not have an LPA and loses the mental capacity to handle their affairs, whether financial or welfare, a deputy is then appointed to manage their affairs. However, this decision is taken by the court, and not the individual.
The deputyship route can become complicated, and may result in an individual being appointed that may not suit the needs of the individual.
An LPA for property and financial affairs can cover areas such as;
- A mortgage
- Paying bills
- Buying and selling property
For more information on powers of attorney, contact our expert team today.