The notion of arranging a power of attorney (POA) does not rank highly among over-40s, with the vast majority citing their good health as reasons not to put one in place, new research has revealed.
According to a survey by Canada Life, just one in six (17%) UK adults aged 40 or over have appointed a POA, a legal process that allows an individual to appoint another person to make decisions on their behalf should they become incapacitated.
A third (32%) said they have not yet appointed a POA because they have full mental capacity, while 30% admitted they had never thought about it and one in five (20%) cited the fact that they’re not in ill health.
Additionally, over one in six (16%) said they haven’t put in place a POA because they are “procrastinating” while 12% said the process was too expensive.
However, 22% of respondents said they have been appointed as a POA themselves. Over half (52%) of those who are a POA said they wanted to give their loved one’s peace of mind and 42% said they felt a sense of responsibility to do it.
John Chew, technical specialist – tax, trusts and estate planning at Canada Life, said: “It is worrying that very few people have appointed a power of attorney, and it is furthermore problematic that many believe that having full mental capacity is a good excuse to put this off.
“In reality, if you get to a stage where you are incapacitated then it will be too late, and the Court of Protection will appoint someone on your behalf. This is why it is essential to start the process when you are in good health and can make your own decisions.”
Chew added that estate planning should be a key part of preparing for later life, including appointing a power of attorney, writing a will and having conversations with loved one about end-of-life wishes and the management of assets.
Main image: manu-schwendener-DSwBHyWKiVw-unsplash
