With 700,000 people living with dementia in the UK, a figure estimated to soar to over one million by 2015, and on average 8,000 Power of Attorney applications made each month, the importance of assessing a client's changing circumstances and their discussions with family members has become ever increasingly important.
Recent ERSA research conducted amongst consumers revealed that 54% of UK adults aged 35 to 64 have not discussed what would happen to financial responsibility should an older family member lose mental capacity. However, with life expectancy increasing and the number of degenerative diseases such as dementia expected to soar, such considerations, through discussions with family members have become more important when committing to a life plan.
Claire Barker, Chairman of ERSA commented: "As the number of people with degenerative diseases rises, it is all the more important for clients to discuss with family members the potential of a loss of mental capacity prior to taking out equity release, to ensure all parties are thoroughly informed of the situation and of possible future occurrences.
"It is also important that financial advisers broach the topic of drawing up a Lasting Power of Attorney with their client, at the same time as advising on equity release plans, to avoid a difficult situation if the client later loses mental capacity."
