STEP, the professional body for inheritance advisers, has launched a new framework for lasting power of attorney in a bid to “transform the lives of millions,” after research revealed capacity issues and requests for advice are on the rise.
The Global Representative Power (STEP GRP) provides a “best practice” template and benchmark for a lasting power of attorney. The new solution was developed by a group of STEP’s expert members in response to growing concerns about the lack of a globally recognised and consistent form of lasting power of attorney, with difficulties arising when a power of attorney is not recognised or accepted in another jurisdiction.
This lack of consistency from one country to another presents “significant barriers” to protecting and upholding the rights and interests of vulnerable clients and can lead to distress, added cost and greater inconvenience, STEP said.
A survey carried out by STEP in partnership with Alzheimer’s Society earlier this year showed financial abuse is on the rise, while capacity issues and requests for advice on these issues have been increasing and will continue to increase.
In response to the findings, the report called for robust and consistent global legislation, which STEP hopes to achieve with the STEP GRP.
In addition, it has called for a safeguard against abuse as well as greater education about capacity and associated planning.
Emily Deane, head of government relations at STEP, said: “‘We are very proud of the hard work of our expert members who have produced a resource that could transform the lives of millions.
“The challenges of an ageing population mean that increasing numbers of people across the globe need to plan for what would happen if they were to lose mental capacity. But in many countries, there is no way for them to do so, as there are no legal frameworks in place to enable this. In others, the legislation is not as robust as it should be. This variation and the lack of consistency from one country to another is putting vulnerable people at risk of financial abuse.
“The STEP GRP aims to resolve this by proposing a set of guiding principles that, if adopted globally, would provide consistency and portability while protecting the rights and interests of vulnerable people.”
