Up to the beginning of March 2019, according to the UK Government LPA registration section, approximately 154,600 Lasting Power of Attorney registrations were made in the UK. During 2020, it is thought that registrations in fact declined as an unexpected consequence of the COVID-19 pandemic.

It seems there is still much to be done in making people aware of what an LPA is and how important it can be later in life. According to research by Direct Life Line Insurance, 80% of respondents assumed that if they were to lose mental capacity, their family or trusted friends would automatically be able to take make medical decisions on their behalf and take over control of their financial affairs.

The research also found that more than two thirds of British people did not know what an LPA was and the importance of planning for the future.

There is also the concern around the increase in dementia in the UK. The worry now is that we may be facing an incapacity crisis. As studies of dementia have revealed more information about the condition, this has shown that dementia can affect the mental capacity of people of all ages, not just the older generation, and this is often overlooked.

The number of people living with dementia is forecasted to rise, and as awareness and research improves we are also seeing that dementia and levels of incapacity can start at a younger age.

As the level of dementia is predicted to rise and the number of ageing people is increasing, then the level of incapacity is set to grow whereby the impact on families, the economy and the healthcare system may be dramatic.

Financial Impact

Care costs are also predicted to increase to support the rise in support required, and the impact on handling family affairs will be huge, as the number of Health and Welfare Lasting Powers of Attorneys being made is not matching the growth in incapacity.

Households can be affected financially if there is no Financial LPA in place, whereby people may be unable to access funds for a period of time until authorities or the courts provide access. This could impact mortgage payments, bills and general household finances.

Mental Capacity

It is expected for mental capacity to be more closely scrutinised going forward, particularly for decisions that are made regarding financial and health affairs. This means it is even more important for an LPA to be made sooner rather than later. If a relative’s mental health deteriorates and you try to get an LPA in place, then it’s likely to be unsuccessful, it will simply be too late by that time.

A Focus on Later Life Planning

Later Life Planning is becoming more of a focus for many people, and not just in regards to pensions and investments. There is an increase awareness to consider how to protect all the things we have worked so hard in order to provide for ourselves when we are older, and our loved ones.

Amy Peters, Director, Beneficial Family Wills comments:
“For many people, an LPA is the best way to protect your interests, by making sure you decide, early on, who has the authority to deal with your financial affairs, as well as make decisions regarding your health and welfare should you become incapable of doing so yourself".

She continues:
"An LPA can be made in isolation on its own, but often works best as part of a discussion around later life planning, including looking at Wills, ensuring all affairs are put in order. Making an LPA can sometimes get complicated, and professional advice and guidance is recommended as part of the process. The registration of an LPA can be highly specialised and time-consuming, and at Beneficial Family Wills with 20 years experience, we can provide swift solutions and expert support to help you.”

Time is of the essence

The most vital aspect for an LPA is to ensure it is done early enough, before any possible signs of incapacity – if there are signs of incapacity the LPA can be disputed. Ensuring capacity can help you in a number of areas for any financial and welfare decisions that may need to be made.

To discuss making your LPA just call our expert team on 01522 500823, and we will ensure you get the right outcome for your circumstances.