When speaking with our clients there is often one conversation that is deemed more unthinkable than discussing financial implications of the death of a loved one; that is either yourself or your partner being incapacitated with dementia.
I simply cannot imagine a life without the one thing which can be taken for granted each waking day... control. Control over your thoughts, control over decisions and control in terms of living your life your way.
A recent report into Dementia found that:
- In the UK there are currently over 820,000 suffers
- 2.5 million people in the UK have a close friend or family member with dementia
- 64% of people living in care homes have a form of dementia
- The financial cost of dementia to the UK is over £23 billion a year
- Only 40% of people with dementia receive a diagnosis
Consider the financial wealth built up over your lifetime be it your property, investment assets, pensions from various employment, cash savings etc. Now imagine how difficult it might be to access these savings if you are incapacitated. The statistics above imply there is a 60% chance you will not receive a diagnosis. Perhaps you may make a financial decision which is neither sound nor logical which may unwittingly penalise your family?
How long could it take to sort your financial affairs? What are the likely legal costs involved once family affairs are out of control? What could be the impact on your loved ones?
These are all very relevant questions to an issue which is not going away. Government funding towards research in this area is very small compared with other major illnesses such as cancer and heart disease.
Fortunately there is a way to protect you and your family whilst you are of sound mind which can provide a straightforward solution to this problem.
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Lasting Power Of Attorney is a legal document which allows an individual (often referred to as a Donor) to nominate a person or people (referred to as Attorneys) to make decisions on your behalf should you reach a state where you no longer have the mental capacity to make certain decisions.
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Lasting Power of Attorney can be divided into two groups, one that relates to your financial well being and one which refers to your health care and general welfare.
The Financial aspect allows the person you nominate as the Attorney to make decisions relating to your financial well being such as bank accounts, payment of bills, sale of property/investments, decisions with regard to financial products etc.
The Health Care aspect allows the person you nominate as the Attorney to make decisions relating to your use or refusal of treatment, along with your general health and welfare.
Just as a Will details your wishes to ensure that your family is provided for, a
Lasting Power of Attorney can provide security for your family at a time when you are incapacitated for whatever reason.
At Fraser Heath we have built a network of trusted legal advisors who we can put you in touch with to arrange such affairs and perhaps at the same time ensure that your will is up to date and reflects your current wishes.
How would your financial affairs be taken care of if you became incapacitated?