More than half of people aged 50 to 64 have not written a will, according to the Money and Pensions Service, leaving their families at risk of their assets not reaching their intended beneficiaries. The guidance also reveals that an estimated 85 per cent of people lack Lasting Power of Attorney (LPA) arrangements, which would allow someone to manage their finances if they become incapacitated or develop dementia. Many families are similarly unprotected by life insurance, despite it being able to make a significant difference to a household's finances if a breadwinner dies.
Without a valid will, assets are distributed under intestacy rules, with spouses and civil partners receiving priority, followed by children and other relatives. A will must be witnessed by two people over 18 who have no personal interest in it and are not related to the person writing it. Those with children face particular urgency, as a will allows them to name guardians for under-18s. The Money and Pensions Service guidance recommends reviewing wills every five years and keeping them stored safely with details of location given to trusted family members. Professional will-writing services offer a cheaper alternative to high street solicitors, though online options are available for those with straightforward circumstances.
The LPA system protects families from potentially severe financial consequences. Without one in place, relatives may be locked out of an ailing person's finances and forced to apply for deputyship through the courts, a process that can incur fees running into many thousands of pounds. An LPA covering both money and health matters is available to anyone aged 18 or over with mental capacity, and registration with the Office of the Public Guardian costs £92. The guidance stresses that LPA should not be considered solely an elderly concern but a priority for anyone with children or dependants.
Care costs present another major planning challenge. According to Age UK, typical fees run around £1,100 a week for residential care homes and £1,450 a week for nursing homes, though these can rise substantially by location and quality. Only those with assets below £23,250 in England, £50,000 in Wales and £36,750 in Scotland qualify for local authority funding. Those considering life insurance should weigh monthly premiums, which typically range from around £5 to £35 for non-smokers in good health depending on age, against their family's needs and existing financial protection such as pension death benefits.
For savers and families in the UK, failing to make these arrangements could mean loved ones face legal complications, unexpected costs and prolonged delays in accessing finances during times of grief and stress.