Most people don’t have a POA. New research from Canada Life reveals that only around one in six (17%) UK adults age 40 or over have appointed a Power of Attorney (POA).

What is a Power of Attorney (POA)

Notably, a Power of Attorney (POA) is a legal process.  Ultimately, a person appoints another to act and make decisions on their behalf formally should they become incapacitated, or unable to do so. 

Lasting Power of Attorney (LPA)

Furthermore, the most common arrangement is called a Lasting Power of Attorney (LPA).  In fact, one in ten (10%) respondents from the research chose this type of POA.  An LPA may make decisions on behalf of another for financial decisions, health and welfare, or both.

The Top 5 reasons for not appointed a POA

Firstly, for those who do not have a POA (78% of those age 40 or over). The Top 5 reasons for not doing so are:

• A third (32%) said they haven’t appointed a POA because “I have full mental capacity”
• Three in 10 (30%) said  “I’ve never thought about it”
• One in five (20%) said “I’m not in ill health”
• Over one in six (16%) said “I’m just procrastinating” 
• One in eight (12%) said “It’s too expensive / I can’t afford a solicitor” 

One in ten (10%) believe (wrongly) that their partner or spouse will automatically be given POA.  This rises to 17% among those who are married or in a civil partnership.  It is usually up to the Court of Protection to decide. Should the person in question become incapacitated without a POA in place. 

The Top 4 reasons for appointing a POA

Secondly, for those who have a POA (17% of those age 40 or over).  The Top 4 reasons that prompted them are:

• Four in 10 (39%) said “I did it at the same time as making a will” 
• Almost one in six (14%) said “I have a friend/ relative with dementia”
• One in seven (13%) said “My financial adviser suggests I plan for the future”
• One in 10 (10%) said “I passed a significant birthday”

Nearly a quarter of respondents (22%) said that they have been appointed as a POA themselves. The top two most popular relations that these individuals are POA for, are parents (49%) and spouses (27%).

Living longer can be a great advantage, but it also brings important responsibilities. Estate planning is so important, particularly appointing a power of attorney and writing a will. Moreover, having honest conversations with loved ones about end-of-life wishes and the management of assets.

Most people don’t have a POA. We can help prepare your Lasting Power of Attorney for Financials and Health & Welfare. Prices start from just £125.00. There is no vat to pay. Contact us today on 01603-957599.