• Millions mistakenly believe their loved ones would automatically have the right to make medical decisions for them were they to be incapacitated
• Just six per cent of Brits have a legally nominated person to make crucial decisions such as whether they should receive life sustaining treatment or be moved to a care home
• Average cost of establishing lasting power of attorney (LPA) by family law professionals is £320+VAT, however, some charge as much as £2,500+VAT

New research¹ from Direct Line Life Insurance reveals just 14 per cent of Brits have established a lasting power of attorney (LPA). An LPA enables a person to appoint one or more people to help them make decisions, or make decisions on their behalf, if they are incapacitated through accident or illness and ‘lack mental capacity’. 

More than two thirds of Brits (38 per cent) are not aware of a Lasting Power of Attorney and are, unknowingly leaving the State (via the Court of Protection) to determine who can make decisions on their behalf were they to lose mental capacity. Without an LPA in place, someone’s spouse or partner may not be able to access their assets or manage their financial affairs and would have to apply to the Court of Protection to access any pension or insurance payments.

More than 80 per cent (41.6 million) of Brits mistakenly believe that without an LPA in place, their loved ones would automatically be allowed to make decisions about their medical treatment on their behalf if they were to be incapacitated. The research reveals 41 per cent of Brits believe their parents would have the priority for making decisions on their behalf, with 14 per cent believing their children would have this authority, while eight per cent thought the responsibility would sit primarily with a doctor or social worker.   

The research shows six per cent of Brits have established an LPA for Health and Welfare, which enables a nominated person to make decisions for someone regarding issues such as their medical routine, daily care, whether they should be moved into a care home or receive life sustaining treatment. An even smaller number of Brits, four per cent, have an LPA for Property and Financial Affairs, which enables a nominated person to manage a bank account, make bill payments, receive benefits or pension payments and decide the sale of a property.  Just four per cent of Brits have an LPA in place for both Health and Welfare and Property and Financial Affairs.      

Leaving the decision to sign an LPA until later can have an emotional impact on the whole family.  Carla from Kent commented: “My Mum was diagnosed with dementia late last year. It turned out that she had suspected something a year ago but hadn’t mentioned it to the family. As you can imagine, the diagnosis hasn’t been easy on her and has been hard for her to accept. Whilst it’s difficult facing reality, we quickly realised that we were in a situation where we needed her to sign a power of attorney whilst she was still of sound mind or be faced with a situation where we had no control over her treatment. It has been a really tough time for us all.”

Family legal practitioners² in the UK charge, on average, £320+VAT to draft the legal documents to establish lasting power of attorney. However, costs vary markedly across the UK, with some law firms charging as much as £2,500+VAT as standard to draw up an LPA, while some charge under £100. If people are looking to draw up their will, LPA can also be included as part of this process.

Jane Morgan, Business Manager at Direct Line Life Insurance, commented: “The idea that at some point we may not have the capacity to make our own decisions can be distressing and is not something any of us want to think about. However, many people would want legal confirmation that their loved ones can make decisions in future on their behalf if something were to happen to them. Important decisions such as, when to move someone into a home, or sell their property, cannot be taken lightly and it is important that people plan for these situations however uncomfortable it may be. Having a lasting power of attorney in place can avoid additional distress at an emotional time.

“When planning for the future, people should not only consider drafting a lasting power of attorney, but also consider having financial provisions in place for their families. Life insurance and critical illness cover can help look after loved ones financially, paying out a lump sum, to help deal with every day money concerns such as household bills and childcare costs.”

In Scotland, the Office of the Public Guardian reports³ the number of LPAs has been growing, but from a very low base.  In Scotland, in 2016, there were 48,872 registered combined powers of attorney, which increased by 57 per cent in 2017 to 77,050. 

For more information on life insurance, please visit: https://www.directline.com/life-cover/family-financial-planning

     - ENDS -

Notes to Editors

 

¹  Research conducted by Opinium among a nationally representative sample of 2,003 UK

 adults between 27TH and 30TH July 2019

²   Research conducted by PureProfile among 102 family law practitioners between 15th and 24th October 2018

³  Analysis of data supplied by The Office of the Public Guardian Scotland on 6th September 2019 in response to a Freedom of Information Act (2000) request made by Direct Line Life Insurance. 

 

For further information please contact:

Simon Henrick

Head of news and issues

Direct Line Group

Tel: 01651 831 668

Email: [email protected]

 

Katie Ormrod

Citigate Dewe Rogerson

Tel: 0207 282 1023

Email: [email protected]

 

Direct Line

Started in 1985, Direct Line became the first UK insurance company to use the telephone as its main channel of communication. It provides motor, home, travel, pet and life insurance cover direct to customers by phone or on-line.

Direct Line life insurance policies are underwritten by Legal & General, registered office: One Coleman Street, London EC2R 5AA. Legal & General Assurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 117659. You can check the FCA register at www.fca.org.uk/register or call the FCA on 0800 111 6768. Legal & General will introduce customers who select the Funeral Benefit Option to Dignity Funeral Services, who are members of the National Association of Funeral Directors.

Customers can find out more about Direct Line products or get a quote by calling 0800 145 5522 or visiting www.directline.com/life-cover