'There are large knowledge gaps when it comes to power of attorney'

The National Records of Scotland predicts that 25per cent of Scots will be over 65 by 2041 compared with 19per cent last year.

By 2025 there will be one million people diagnosed with dementia and 1.3m living with the disease in the UK, according to a recent report by Solicitors for the Elderly. One in 14 people are predicted to develop dementia at age 65 rising to one in six at age 80 and above.

Crucially, a power of attorney has to be set up and registered before it is needed, while the ‘granter’ is capable of making their own decisions.

Rachael Griffin, tax and financial planning expert at Quilter, which obtained the power of attorney figures under Freedom of Information, said: “The largest population increase in Scotland has been in the 75 and over age group, which has surged over 30 per cent over the last 20 years to 450,000. This surge has thankfully led to a corresponding jump in power of attorney registrations. However, it looks unlikely 2018 will match last year’s astonishing near 80,000 registrations.”

There are two different types of power of attorney: a continuing PoA, for decisions about property and financial affairs, and a welfare PoA, for decisions about health and welfare matters. The vast majority of registrations last year were for both.

Appointments by the courts of guardians, where no PoA is in place, rose from 3,875 to 4,217. During the year there were 3,043 revocations (cancellations) of a PoA, up from 2,400. The average age for a registration has fallen from 74 a few years ago to 71.

The Law Society of Scotland says: “A power of attorney can only be granted from an individual who can understand and explain their wishes whereas a guardianship applies when a person does not have capacity to make decisions on their own behalf. A guardianship is applied for through the courts (and can take up to six months to be granted) whereas a power of attorney is drawn up by a solicitor. A guardianship is for a fixed period of time (unless a good reason can be shown why it should be longer) whereas a power of attorney stays in force unless revoked by the person granting the power of attorney or death.”

Ms Griffin commented: “The slight drop in the age at which people register a power of attorney is encouraging, however, it should be something that is arranged much earlier in life than it typically is. Dementia, one of the key drivers to getting a power of attorney, can impact people as young as 30. There are still thousands of people who have applied for guardianships, which is a more cumbersome and costly process.”

She went on: “There are large knowledge gaps when it comes to power of attorney. We’ve found that many people believe a PoA must ‘start’ immediately and cannot be changed. For example a continuing power of attorney can be set up in advance including an ‘incapacity statement’ stating it will only be enacted when the person loses mental capacity. It can also be changed or removed at any time before the loss of capacity. The increase in the number of deed of revocations shows there is an increasing knowledge that power of attorney can be removed and changed if your circumstances alter, for instance because of divorce. If you wish to add in specifications, for instance if you’d like to add or change an attorney you can do so through a deed of amendment.”

A solicitor’s typical cost of a PoA might be £200, or £300 for a couple, plus the £77 fee for each registration.

Ms Griffin said: “Discussing power of attorney is no easy feat as it is essential a conversation about when you or a loved one will no longer be able to manage personal affairs. However, with the rise in dementia it’s crucial to talk about who can make decisions on your behalf, so if it does happen people loved ones are not left to navigate court systems during what will be an already challenging time.”