Sir Ian McKellen recently stepped down from his role in the West End theatre show, Player Kings, a modern retelling of Shakespeare’s Henry IV, after a serious accident during the play.
The legendary actor was performing a fight scene when he lost his footing and fell from the stage. Theatre staff and two medically trained audience members rushed to help him, and he was subsequently taken to hospital. The following two shows were cancelled, allowing McKellen time to rest.
Unfortunately, as the Guardian reports, McKellen later said: “Two weeks after my accident onstage, my injuries improve day by day. It’s with the greatest reluctance that I have accepted the medical advice to protect my full recovery by not working in the meantime”.
As a result, theatregoers with tickets to see Player Kings on the upcoming national tour may have been concerned that the show would be cancelled. Fortunately, David Semark, McKellen’s understudy, will take on the role and the tour will go ahead as planned.
Many theatre productions have an understudy, who learns the role and performs certain shows. They also act as a safety net when something goes wrong. Just as David Semark did when Ian McKellen injured himself, the understudy steps in so the show can continue.
Having an understudy for your finances could give you a similar safety net. You could limit disruption to your financial plan by appointing a trusted person to take over and handle your affairs if you’re not able to.
Read on to learn how to appoint an understudy for your finances.
A “Lasting Power of Attorney” allows you to choose a trusted person to manage your affairs
Ian McKellen’s story demonstrates that you never know when you could sustain an injury that incapacitates you. Equally, you might fall ill and be unable to manage your affairs.
When it comes to your wealth, a Lasting Power of Attorney (LPA) offers similar benefits to an understudy, ensuring that somebody else can step in and take over your role.
An LPA is a document that names one or more attorneys to make decisions on your behalf if you are not able to yourself.
There are two types of LPA:
- Health and welfare LPA – This nominates an attorney to handle decisions about issues including your medical treatments, whether you should move into a care facility, and your daily routine.
- Property and financial affairs LPA –This nominates an attorney to deal with your financial affairs. They will have access to bank and building society accounts, pensions, investments, and other financial products. They ensure that your bills are paid on time and might make decisions about your investments or pensions.
You can choose a different person for each type of attorney, or the same person for both. If you fall ill or sustain an injury and are considered “not mentally capable” of handling your affairs, your attorneys step in and make decisions for you.
The property and financial affairs LPA comes into place immediately, so you can always ask your attorneys to manage your affairs if you need them to, regardless of whether you lose mental capacity or not.
The health and welfare LPA, on the other hand, only comes into effect once you lose mental capacity.
It’s also important to note that you must be mentally capable when setting up your LPA. So, if you wait until you’re injured or fall ill, you may not be able to appoint attorneys.
Creating a Lasting Power of Attorney allows your loved ones to make quick decisions about your care
If you don’t create an LPA and nominate attorneys, and you fall ill or have an accident, you could leave your family in a difficult position.
They will likely have to apply to the Court of Protection for a Deputyship Order before they can make decisions on your behalf. This process could take up to six months and may create unnecessary stress during an already difficult time.
As a result, crucial decisions about your care could be delayed. Also, the Court of Protection might appoint an individual that you wouldn’t have chosen yourself.
Conversely, by creating an LPA, you can ensure somebody you trust is able to make important decisions for you right away.
An attorney ensures you can meet your short-term financial obligations
Similarly, if your family has to apply to the Court of Protection to access your bank accounts, they may be unable to pay bills or move wealth to different accounts while they’re waiting for permission. As a result, you could fall behind on certain bills and other financial obligations.
This could cause problems as missing mortgage payments or other bills might affect your credit rating, cause you to incur fees and charges, and affect certain services you rely on.
Fortunately, if you create an LPA now, your attorney can immediately take control of your finances if the worst happens. That way, you can be sure that you continue meeting your financial obligations.
Having an understudy for your finances allows you to continue working towards your long-term goals
When Ian McKellen went to hospital, his understudy stepped in right away and finished the final shows of the West End run. Understudies often fill this role, performing a few shows to bridge the gap until the lead actor returns.
If you’re only incapacitated for a short time, your attorneys might take on a similar role, paying your bills and keeping things ticking over while you recover.
However, as it became clear that McKellen wouldn’t be able to return, the production began looking ahead, and Semark made more long-term preparations to take over the role for the national tour.
In some cases, your attorneys might take a long-term approach too.
For example, they could make decisions about your investments and pensions, to ensure you continue building wealth for the future. They might also deal with protection claims if you have critical illness cover or income protection, and make financial provisions for your family.
Additionally, they might consider your estate plan and how best to pass wealth to the next generation.
Ultimately, having an LPA in place means that you can continue working towards your long-term financial goals of preparing for retirement, looking after your family, and leaving a legacy for your loved ones.
Get in touch
If you don’t have an LPA in place, we can help you protect yourself.
Email enquiries@blackswanfp.co.uk or contact your adviser on 020 3828 8100.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
The Financial Conduct Authority does not regulate estate planning, Lasting Powers of Attorney, or will writing.
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The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
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The post As Sir Ian McKellen pulls out of theatre tour, who is the “understudy” for your finances? appeared first on Black Swan Financial Planning.
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