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Power of Attorney applications rise but Covid could cause disruption

25/06/2020

If you are covering the latest Family Court statistics, which show that Power of Attorney applications were up 5% year on year in January to March, please see the following commentary from Rachael Griffin, tax and financial planning expert at Quilter:

“Lasting Power of Attorney (LPA) applications continued to rise in the first quarter of this year before the Covid-19 pandemic struck. They have become progressively more popular over the last decade, and we could reach close to a million new applications per year at the current rate.

“It is possible the pandemic may have curtailed the number of people applying for an LPA, however, given the requirements around wet signatures. Although an LPA application can be made online, signatures from the ‘donor’ and the ‘attorney’ must be witnessed in person by someone impartial. This is to ensure the protection of both parties.

“However, social distancing restrictions led to an unprecedented set of circumstances that meant some families witnessing legal documents through a ground floor window or meeting in a public space and keeping their distance while documents were witnessed. This is unconventional and some people will have been unable or unwilling to complete this formal legal procedure under those conditions.

“If there is a decline in LPA applications in the second quarter as a result it should hopefully only be temporary. An LPA gives people peace of mind by allowing them to make an informed decision about who will manage their affairs if they become mentally incapacitated. This can be really important as individuals may experience distress and even family conflict if they’re trying to make complex choices about their financial and health needs at a time when they are grappling with the deterioration of their mental faculties.”

 

Year

Number of EPAs Received

Number of LPAs Received

Total POAs Received

2008

20,506

52,492

72,998

2009

20,585

87,568

108,153

2010

19,689

163,045

182,734

2011

16,916

189,335

206,251

2012

17,598

228,125

245,723

2013

16,367

273,583

289,950

2014

15,084

358,704

373,788

2015

14,343

511,572

525,915

2016

12,557

590,593

603,150

2017

11,678

753,676

765,354

2018

9,865

800,410

810,275

2019

9,130

898,004

907,134

2020 Q1

2,239

237,408

239,647

 

Source: Office of the Public Guardian, Enduring Power of Attorney and Lasting Power of Attorney applications for England & Wales.

For more information contact

Michael Glenister020 7778 963807469 144535michael.glenister@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 £95.3 billion in customer investments (as at 31 March 2020).

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 and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

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

This press release is for journalists only and should not be relied upon by financial advisers or customers.

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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.