A significant number of lifetime mortgage customers are missing key legal protections designed to protect their wealth or health in later life, according to new data from HUB Financial Solutions.

HUB, one of the largest providers of regulated equity release advice in the UK, found that one in five (20%) of customers seeking advice on these products does not have a will in place. 

Meanwhile more than eight out of 10 (84%) have not organised Power of Attorney despite the crucial protection this can provide in the event of accident, illness or declining health.

HUB Financial Solution managing director Simon Gray, says that advisers have an important role in encouraging more people to put in place legal protections to safeguard their interests in later life and ensure their wishes are understood. 

“Financial advisers are well positioned to explain the importance of these legal documents at a time when clients are looking to proceed with significant long-term financial decisions such as taking out a lifetime mortgage. 

“Advisers may also be able to recommend trusted legal partners that specialise in estate planning, and help assess the value of assets in the estate alongside any tax issues the client may be unaware of but want to consider.” 

He adds: “It’s not easy thinking or talking to family about the ‘what ifs’ but it is always worthwhile to have that peace of mind. It helps avoid situations where family members have to navigate extra obstacles at a time of emotional distress.” 

He highlighted the importance of formal Power of Attorney documents which give responsibility to a trusted party to make financial or health decisions on behalf of the donor. 

He adds: “Married couples assume that if one partner loses capacity then the other can just step in, and children often assume they can pick up matters on behalf of parents, but they won’t have the authority unless a Power of Attorney is in place. Leaving it too late means applying to be a deputy to the Court of Protection which can be expensive, time-consuming and offers more limited authority.”