The majority of people living in the UK are not prepared for a major trauma in their lives such as a severe illness or serious accident according to new resaerch carried out by Standard Life.
In addition, half the UK population has made no plans to have their affairs in order at the time of their death.
The research showed that:-
ï 50% do not have a will
ï 74% do not have a power of attorney
ï 3% own property abroad but do not have a will in that country to cover this property
ï People with children are less likely to have a will than those who have none – 43% V 52%
ï People who are widowed/separated/divorced are more likely to have a will than those who are married/cohabiting – 59% V 53%
Commenting on the findings Julie Hutchison, National Development Specialist – Estate Planning for Standard Life, said “A will and power of attorney should be bread and butter planning for everyone. Despite these being some of the most important documents you ever sign, 50% of those in our survey seem to favour the ostrich approach. But sticking your head in the sand is not the answer.”
Hutchison added that leaving thinsg to chance has 3 important downsides:
ï HM Revenue & Customs might get more of an individual’s hard earned assets than if proper IHT planning had been carried out and a will drawn-up
ï Without a will distant members of someone’s family could benefit financially in ways the individual might not be happy with, and
ï It will probably cost more in legal fees and take longer to wind up an estate if no will exists
She added: “In addition those with property abroad but no will in that country may find the foreign law aspects can be complicated on death.
\"It is worrying that such a low number of those questioned have powers of attorney. This means that if they end up in a coma or suffer a serious accident their legal and financial affairs will not run smoothly causing extra stress and suffering for their families and loved ones. I would therefore urge everyone to seek advice and put their legal and financial affairs in order.”