If not it could cost your family thousands
If you don’t set up a LASTING POWER OF ATTORNEY (LPA) you’re leaving the management of your financial and health affairs to chance.
According to new research from Compass Will Writers, 84% of adults have not set up an LPA, a legal document that allows loved ones to make decisions relating to your health or finances on your behalf, should accident or illness prevent you making them yourself.
The research also found that more than a quarter did not know what an LPA was and that 54% did not know there were two types – one covering decisions surround health and welfare and one covering property and financial affairs.
With a dementia diagnosis being made every three minutes in the UK, one million people are forecast to have the condition by 2025, LPAs should be considered as important as a Will.
Wayne Dyer, of Compass Will Writers in Gorseinon says: “We advise that both LPAs are put into place at the same time as a Will. Both are crucial parts of later life planning and can help to alleviate stress and worry for loved ones further down the line.”
Without an LPA your family will need to go to court
Many people mistakenly think that if a person loses mental capacity, their next of kin can take authority of their affairs, but this is not the case. Without an LPA loved ones need to apply to court to get the necessary permissions.
This can be a lengthy, stressful and expensive process. It costs between £2,500 – £5,000 in court and legal fees.
The process of obtaining the court order can also take up to six months. During this time, the individual’s finances are frozen, but care costs still need to be paid and direct debits cannot be stop-ped making it a stressful time for families. The arrangement also needs to be reviewed on an annual basis at a cost of £320.
If the court does not approve the deputy and a professional (most likely a solicitor) is appointed then costs can spiral.
Alyson Dyer Head of LPAs at Compass Will Writers says: “It is far cheaper to set up an LPA. If more people knew the costs many more would set up LPAs long before they may be needed. Not only is it more cost effective to do so, you are also ensuring that those whom you trust the most are certain to be the ones making important decisions about your finances and your health and welfare when you need them most.”
If you have any questions on the subject of Probate, Wills or Lasting Powers of Attorney you can get a FREE first meeting by contacting Compass Will Writers.
Compass Lasting Powers of Attorney 77 High Street, Gorseinon, Swansea SA4 4BL
Tel: 01792 893200 www.compass-advisors.co.uk