Equity Release Clients Fail to Arrange Major Legal Protections

According to new data from HUB Financial Solutions, a significant number of lifetime mortgage customers lack key legal protections designed to protect their wealth or health later in life.

HUB, one of the largest providers of regulated share release advice in the UK, has found that one in five clients (20%) who seek advice on these products do not have a will in square.

Meanwhile, more than eight in 10 (84%) have not arranged a power of attorney despite the crucial protection it can provide in the event of an accident, illness or decline in health.

HUB Financial Solution Managing Director Simon Gray says advisors have an important role to play in encouraging more people to put legal protections in place to protect their interests later in life and ensure their wishes are met. understood.

“Financial advisors are well placed to explain the importance of these legal documents at a time when clients are looking to make important long-term financial decisions, such as taking out a life mortgage.

“Advisors may also be able to recommend trusted legal partners who specialize in estate planning and help assess the value of estate assets as well as any tax issues the client may not be aware of but are wish to take into account.”

He adds, “It’s not easy to think or talk to family about ‘what ifs’, but it’s always worth having that peace of mind. This helps avoid situations where family members have to overcome additional hurdles in times of emotional distress.

He stressed the importance of formal power of attorney documents that give responsibility to a relying party to make financial or health decisions on behalf of the donor.

He adds: ‘Married couples assume that if one partner loses capacity the other can simply step in, and children often assume they can take over the business on behalf of the parents, but they won’t have the right to do so. authority unless a power of attorney is in place. square. Waiting too late means applying to be a member of the Court of Protection, which can be expensive, time-consuming and offer more limited authority.

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