Lack of Lasting Powers of Attorney May Lead To Financial Abuse
Informal arrangements with relatives’ finances may seem like a sensible way to manage ageing parents’ accounts and welfare, but without proper Lasting Powers of Attorney (LPA) in place, these arrangements can easily be abused, or cause serious issues after death. According to research by the Co-op, 25% of people aged 45+ have access to the finances of a relative who isn’t their spouse – for example, their parents, siblings, aunt or uncle. Around 10% of these had a formal arrangement via a joint account, and a fifth had direct access to online banking accounts or a relative’s bank card. In most cases, these figures represent family members taking care of issues ...