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Press comment: PoA applications lose momentum as knowledge gaps remain

27/09/2018

Figures from the Ministry of Justice and the Office for National Statistics today highlight a recent upward trend in power of attorney applications is beginning to lose momentum. In April to June 2018, there were 197,836 LPAs received, up 2% from the equivalent quarter in 2017. 

Rachael Griffin, tax and financial planning expert at Quilter, flags that many people do not set up power of attorney because they have knowledge gaps and that calls for more awareness and educational campaigns.

Rachael GriffinRachael says:

“The surge in power of attorney applications in the last decade is an accomplishment and the fact that increase is continuing is encouraging. However, there is a noticeable slowdown in momentum and one that the nation can ill afford.

“Qualitative research by Big Window for Quilter revealed that while many people are aware of the term power of attorney there are gaps in their understanding including: people think the process of setting up a PoA is complicated and costly; there is a misconception generally that once a PoA is in place the donor loses control of their affairs, even if they have mental capacity;  and generally current levels of knowledge are low, some people are honest about this and others believe they are knowledgeable but have incorrect understanding.

“Campaigns and education around power of attorney need to continue. Figures from the courts reveal there are still thousands of people who have to apply for deprivation of liberty, which is a more cumbersome and costly process.

“Discussing power of attorney is no easy feat as it is essential a conversation about when you or a loved one will no longer be able to manage personal affairs. However, with the rise in dementia it’s crucial to talk about who can make decisions on your behalf so if it does happen people loved ones are not left to navigate court systems during what will be an already challenging time.” 

 

For more information contact

Kathleen Gallagher023 8072 629307990 004932kathleen.gallagher@quilter.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £114.9 billion in investments (as at 31 March 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

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This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.