It has recently been reported that there has been a significant reduction in the number of Lasting Power of Attorneys (LPAs) registered in the UK.
The number of LPAs registered between April 2020 and February 2021, has dropped by 30% compared to the same period the previous year.
At the start of the pandemic there were a few issues with getting LPAs arranged as things such as getting a wet signature became problematic. It took the Office of the Public Guardian (OPG) around a month to produce guidance on how to apply in the covid-19 environment.
On top of this, the OPG expressed they were seeing large levels of enquiries and it was taking longer than usual to process applications. It is no wonder the year on year level of registrations dropped by over 70% for the month of April alone.
For those who were put off by the difficulty of registering an LPA at the beginning of lockdown, or are putting off what can be a very difficult conversation, it is vital to put the task back at the top of the to-do list. An LPA can only be registered while you have mental capacity – once you’ve lost capacity its too late.
Establishing an LPA is a critical part of later-life planning. There are 2 types of LPA – health and welfare and property and financial affairs.
On top of these issues, it appears many are underestimating the importance of Will creation for inheritance tax purposes.
Recently, Tower Street Finance surveyed 2000 UK adults and the results showed 8 out of 10 people say that they plan to leave an inheritance to loved ones, but almost half are “leaving it to chance exactly who will, and will not, benefit”.
The results detailed that 45% of UK adults say that they have not written a will, this comprises 23% of people aged 55 and over and 47% of women not having a will in place.
Despite this, people showed they do have strong views on who should, and who should not, gain from any legacy they leave when they die, as 61% of people want their children to benefit from an inheritance and a further 43% said they wanted to leave everything to their partner or spouse.
Please contact us at Tyto Law to discuss an LPA or making a will.
We know the potential pitfalls and will ask you all the right questions to make sure that you have considered every possibility.
We can advise you as to whether you would be best with a Will or a Testamentary Trust. Let us design your Will in such a way to help protect your family from expensive estate litigation after your death.
