Solicitors say LPAs vital for drawdown clients

Moore Blatch solicitors have argued that while drawdown requires ongoing management, most clients will be unable to manage some, or all, of their financial affairs at some point during the retirement due to physical ill-health or a lack of mental capacity.

In the context of drawdown, a Lasting Power of Attorney could make decisions about anything from managing investments to the need for an income to be redirected in order to fund care needs.

Moore Blatch warns that the take up of LPAs is still incredibly low. Current data shows that just under one million LPAs have been taken out in England and Wales since 2012, despite there being 1.5 million people aged over 85 and 5 million aged over 75.

According to Moore Blatch, there are a number of reasons why the take up of LPAs remains low in the general public, but these reasons should not apply to drawdown clients who must have received professional advice. The reasons for current lack of take-up include: a general lack of awareness of LPAs, a lack of willingness to accept that one might need an LPA, and the perceived and actual complexity of putting one in place.

Fiona Heald, Head of the Court of Protection team at Moore Blatch solicitors, commented:

“While we would argue that most people should have the security of a Lasting Power of Protection in place, we would expect virtually everyone who has chosen to manage their retirement finances personally to have one. Without an LPA a third party would not legally be allowed to instruct an adviser on any changes to a drawdown arrangement. We would also recommend that the LPA is drafted by a solicitor as there can be very serious consequences should an LPA be completed erroneously.”