• March 28, 2024
 LPA applications see 30% growth

LPA applications see 30% growth

There has been a 30% rise in the number of Lasting Power of Attorneys received between April and June of this year compared to the correspondent period in 2016.

Driven largely by the increase in awareness and introduction of online application, the growth in LPAs remains positive, and a trend which many have branded as encouraging.

However, the need for a review of the system has also been suggested, especially in light of the risks that the new online system introduces.

Taking this stance was Rachel Griffin from Old Mutual Wealth. The tax and Financial Planning expert highlighted that despite the improved accessibility that the new service brought for older users, their vulnerability needs to be acknowledged.

“In a recent paper the Financial Conduct Authority (FCA) suggested that power of attorney should be granted online and not require a wet signature. While it is important to make it easy for older customers to deal with their finances, it’s also crucial to remember that older customers are often the main targets for scams and so we would caution that any other third party work-around should be used sparingly and have a robust framework. Otherwise, firms risk creating a hotbed for scam artists looking to take advantage of older customers.”

Griffin went on to mention the ongoing importance of LPAs, despite the exposure to risk that they may bring. She also drew attention to the importance of creating one sooner rather than later, given that they can only be registered whilst mental capacity is still intact.

“People often do not plan for the increasing possibility they may have a mental or physical illness in their later life, leaving them financially vulnerable. As dementia continues to rise there is an increasing population that is susceptible to theft or illegal use of their property, money or other valuables. A LPA can only be registered while you have mental capacity – once you’ve lost capacity it is too late.”

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