Estate Planning

A recent study reported that only 1% of the UK population has a lasting power of attorney (LPA) in place. An LPA allows previously appointed family members or friends to manage someone’s finances should they become unwilling or unable to do so.

Why do so few of us have an LPA in place? Is it because we simply do not know enough about them, what they really do or how relevant they are in the current climate of pension freedoms?

Few people realise there are two types of LPAs to choose from: health and welfare or property and finance.

A health and welfare LPA only becomes active in the event of incapacity. A property and finance LPA, however, can be used at any time after it is registered, not just as a result of physical or mental incapacity.

It is important to note that different attorneys can be appointed for each LPA. For example, those making financial decisions may be different to those dealing with your health care. An attorney only becomes legal once he/she is registered with the Office of the Public Guardian.

In addressing the importance of an LPA, it is wise to discuss pension assets and equity release matters separately.

Pension Assets

In the event of incapacity without an LPA, any funds would be held in limbo until the Court of Protection could award attorney powers to someone they deem appropriate. This is because a will only determines what will happen to funds after death.

A property and affairs LPA deals with pension matters for any funds held in the sole name of an individual. An LPA is relevant no matter how the funds are invested, whether still in the main pension or in drawdown.

An LPA can facilitate withdrawal levels and investment strategies, as well as adapting to ongoing needs over time.

Equity Release

With equity release drawdown plans, each time a further draw of funds is required, all named borrowers must be able to sign. LPAs are essential to securing ongoing access to further funds from a drawdown plan.

If you rely on access to pension assets or funds, blocking access could have a devastating impact on your finances.

We have a responsibility to advise our clients — be that releasing equity from their homes or recommending retirement strategies — to ensure that we are protecting their interests.

All too often we focus on the impact of death, which inevitably has a serious impact on all related parties. However, the impact of mental or physical incapacity can be far more serious.

We will review your existing provisions and, if necessary, facilitate the arrangement of a will and/or power of attorney.

We strive to be a core part of your financial planning process and will advise you on the need to look beyond pension planning or investments and discuss the stark implications of incapacity and death.

Contact Us for More Information

Financial Guides

May/June 2017 Magazine

May/June 2017 Magazine

Road To Brexit - Biggest investment planning challenge over the coming years for all investors



A Guide to Retirement Planning

A Guide to Retirement Planning

How will you ensure you achieve the retirement lifestyle you deserve?


News + Media

Tapering of annual allowance for high incomes – adjusted and threshold incomes

Wednesday May 31, 2017

This measure restricts pension tax relief by introducing a tapered reduction in the amount of the annual allowance for individuals with an adjusted income of over £150,000 and a threshold income over £110,000. Key facts The annual allowance will be reduced for individuals who have ‘adjusted income’ over £150,000 a year. The reduction in the …


Check the FCA Register-Scam Advisers looking to get your pension

Friday April 28, 2017

pensions, pension planningConventional wisdom points to defined benefit schemes as the gold standard of retirement provision. This position is also held by the Financial Conduct Authority, which has led to the majority of financial advisers opting out
of providing advice in this area. Those ‘specialist’ firms that do provide advice are typically reliant on the Critical Yield Method. …


Pension freedom withdrawals cut through £10bn barrier

Wednesday April 26, 2017

More than £10bn has been accessed flexibly since the introduction of pension freedom in 2015, the latest HM Revenue & Customs statistics have shown. A total £1.59bn was flexibly withdrawn in Q1 2017, the most in any quarter since Q2 2016 and the second-highest figure seen. More than 390,000 flexible payments were made in the …


£20k ‘death tax’: Government new Tax charge

Wednesday April 12, 2017

The Government’s dramatic increase in probate fees is attracting more outcry as it emerges the Ministry of Justice does not know how much it costs to handle an application for probate. From next month, a new system takes effect that will see the largest estates pay £20,000 in probate fees. Probate must be granted to …



© 2017 AAC • all rights reserved • Site powered by Zostro

Registered in Scotland SC362302 Advanced Asset Consultants Ltd. is authorised and regulated by the Financial Conduct Authority FCA Registration No: 506551 The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The information contained within this site is subject to the UK regulatory regime and is therefore targeted primarily at consumers based in the UK. This website is designed to provide you with general information only and does not attempt to give you advice on any particular investment or to recommend any particular investment to you. If you have any doubt as to whether a particular investment is suitable for you, you should contact Advanced Asset Consultants Limited on 0141 331 2434.

eia uksif