Overwhelmingly, the older generation feel as though they are unable to trust their younger relatives with their financial decisions as they age.
A recent report, conducted by Co-op Legal Services, has found that 79% of respondents over the age of 45-years have not made a lasting power of attorney (LPA) because they do not completely trust their younger relatives to make financial decisions on their behalf when and if they were to lose capacity, with 35% claiming they have no intention of creating an LPA at all.
According to the report, 74% of those aged between 65 and 74-years-old have failed to make a lasting power of attorney.
This sentiment continues with those over 75-years-old as 67% have not made a lasting power of attorney entrusting their loved ones to make their financial decisions when and if they lose capacity.
The prominent sentiment amongst respondents for failing to make a valid lasting power of attorney concerned the donor lacking trust in their loved ones to make decisions in their best interests.
56% of people aged over 45-years-old did not feel they could trust their loved ones to make financial decisions for them. 14% felt their loved ones are inadequately managing their own finances and would therefore struggle to look after the finances of another person.
11% fear that the deputy or attorney they appoint would borrow money without returning it if an LPA was made.
Overall, 29% would not trust a friend to represent them through an LPA, 18% would not trust their child and 19% would not trust their siblings to take control of their finances should they lose capacity.
James Antoniou, head of wills at the Co-op said: “It’s concerning that so many people are not protecting themselves by properly planning ahead for later life.
“While our research shows that part of the reason is due to people not knowing who to fully trust to make important decisions on their behalf, there is clearly still a serious lack of awareness of the importance and benefits of putting a Lasting Power of Attorney in place.
“A Lasting Power of Attorney is a legally recognised way for a person to choose trusted individuals to make decisions about their finances and also their personal welfare which, most importantly, continues in force even after that person becomes unable to make such decisions themselves.”
The 37% of adults claiming that they intend to make an LPA to ensure their express wishes and financial obligations are met if they were to lose capacity will need to ignite their trust in the younger generation, they currently perceive to be irresponsible and untrustworthy.
How important is an LPA to ensure a person’s express wishes are carried out? How concerning are these figures?
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