Most boomers neglecting smooth transfer of Power
FEWER than a third of baby boomers have registered a vital document called a Lasting Power of Attorney to protect themselves and loved ones against losing capacity.
An LPA allows family members or close friends to take charge of key financial and medical decisions on your behalf, if you suffer from Alzheimer’s or dementia, a serious accident or illness.
Once banks discover a customer has lost mental capacity, they instantly freeze their accounts, locking loved ones out.
Yet just 29 per cent of those aged between 58 and 76 have taken out one, with numbers hit by Covid disruption, according to investment platform and financial adviser Quilter.
That is despite half of respondents fearing they will need long-term nursing care during their lifetime.
Shaun Moore, tax and financial planning expert at Quilter, said more needs to be done to raise awareness as take-up is “worryingly low”.
There are two types of LPA, one covering health and welfare, and another for property and finance.
They cost £82 each in England, with a 50 per cent discount for those on low incomes, plus legal fees if you use a solicitor.
The Government has made it easier by setting up a new online LPA service at Gov.uk.
Moore said some people believe that setting up an LPA will leave them vulnerable, but in fact it brings peace of mind for you and your family.
“It means your wishes will be carried out, even if you lose capacity,” he said.
Without one, your family will have to apply to the Court of Protection to manage your affairs, which is costly, stressful and time-consuming.