Lasting Power of Attorney ‘can make equity release simpler’
Older homeowners have been advised to help their family to help them by preparing a Lasting Power of Attorney.
The Equity Release Solicitors’ Alliance (Ersa) has recommended that older people give some thought to what would happen to their finances if they lose mental capacity.
A recent study by Ersa found that more than half of adults aged between 35 and 64 have not even discussed what plans they need to put in place in case an older relative loses the ability to manage their own finances.
The body warned that failure to plan for such an event could make the situation even more difficult, particularly if money needs to be raised for expenses such as care fees.
Unless a Lasting Power of Attorney is in place, it could take months for a relative to obtain financial guardian status, delaying any equity release plan.
Ersa spokesman Peter Barton said older homeowners should consider acting to appoint someone they trust as Attorney while they are in good health, so that person has a full range of financial options open to them if Power of Attorney needs to be used.
The recommendation comes just weeks after a report by independent financial advisor website Unbiased.co.uk revealed that two-fifths of people aged over 50 have still not made a Will.
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