Many customers are entering the advice process without legal safeguards to protect their wealth and health in later life, Data from HUB Financial Solutions reveals.
One in five (20%) customers seeking advice had no will in place setting out their wishes for their estate.
More than eight in 10 (84%) had not organised Power of Attorney despite the crucial protection it provides in the event of accident, illness or declining health.
The figures are broadly in line with research from HUB Financial Solutions’ parent company, Just Group, which uncovered that more than one in 10 (12%) over 75s had no will in place and 70% had not arranged Power of Attorney.
Simon Gray, managing director of HUB Financial Solutions, said that advisers have an important role in encouraging more people to put in place legal protections to safeguard their interests in later life and ensure their wishes are understood.
“It’s not easy thinking or talking to family about the ‘what ifs’ but it is always worthwhile to have that peace of mind,” he said. “It helps avoid situations where family members have to navigate extra obstacles at a time of emotional distress.”
He highlighted the importance of formal Power of Attorney documents which give responsibility to a trusted party to make financial or health decisions on behalf of the donor.
He added: “Married couples assume that if one partner loses capacity then the other can just step in, and children often assume they can pick up matters on behalf of parents, but they won’t have the authority unless a Power of Attorney is in place.
“Leaving it too late means applying to be a deputy to the Court of Protection which can be expensive, time-consuming and offers more limited authority.
“Financial advisers are well positioned to explain the importance of these legal documents at a time when clients are looking to proceed with significant financial decisions such as accessing a pension or taking out a lifetime mortgage.
“Advisers may also be able to recommend trusted legal partners that specialise in estate planning, and help assess the value of assets in the estate alongside any tax issues the client may be unaware of but want to consider.”
