In financial and estate planning, having a comprehensive understanding of our clients’ legal documents is essential. These documents, such as wills and lasting powers of attorney (LPA), offer crucial insights into a client’s intentions and the individuals they have chosen to make important decisions on their behalf, whether related to health or finances.
By requesting copies of these documents, we ensure that our advice aligns with the client’s overall estate plan, helping to prevent potential conflicts, safeguard their interests, and ensure that their financial and legal matters are managed according to their wishes.
Prepare for the unexpected
For instance, if we need to facilitate the transfer of funds due to a client’s unexpected death or incapacitation, having access to these documents allows us to confirm that we are interacting with the correct individuals who have the legal authority to act on the client’s behalf. This is particularly important when dealing with wills, especially for clients with pension benefits.
In cases where beneficiary nominations have lapsed or are deemed incorrect, a will helps us identify the rightful heirs. In fact, by holding and periodically reviewing a client’s will, we have sometimes identified discrepancies between the will’s instructions and the client’s expressed wishes, thereby preventing assets from being distributed to unintended recipients.
What if I can’t act for myself?
Similarly, keeping a LPA on file ensures that we communicate with the appropriate individuals when actions need to be taken. For instance, if an LPA requires multiple people to sign withdrawal instructions, we need to be aware of who those individuals are. The ‘Use an LPA’ service simplifies this process by allowing clients to share an activation key and LPA reference number, enabling us to be added as a firm online and access necessary information without the need for the entire document.
This service allows you to share an activation key (a 12-digit number beginning with a ‘C’) and your 12-digit LPA reference number – both of these can be found on your ‘Registration Confirmation’ letter. Once we have these you can add us as a firm online and we can access these online.
Being prepared makes sense
Overall, holding these legal documents on file allows for smoother transactions and reduces the need for repeated information requests. This efficiency is particularly valuable during difficult and sensitive times.
If you would like to discuss this further, please don’t hesitate to reach out to one of our Financial Planners.
