By now you’ll know that in the autumn of 2024, the government proposed the introduction of an Assisted Dying Bill. This legislation would allow terminally ill individuals to have a say about how and when they pass away.
Since it was announced, countless news articles have been published both in favour of, and opposition to, the Bill. Some journalists, doctors, lawyers, and even financial professionals have called key issues into question, many of which surround the problem of coercion and abuse.
Others support the Bill, citing that it would give terminally ill individuals greater dignity as they approach the end of their life.
Whatever your opinion, on a personal or professional level, there is a chance that the Assisted Dying Bill could be passed in the near future. If it becomes law, your clients will need to consider their stance and potentially make changes to their financial plans.
Keep reading to discover what the Assisted Dying Bill proposes and why it matters for financial planning.
The Assisted Dying Bill is still in the proposal stages and would apply only to terminally ill patients
As with all new legislation, the Assisted Dying Bill is subject to several stages of scrutiny and has not yet been made law. In fact, the Bill may not pass altogether – there is no guarantee.
As of 20 February 2024, the Bill is in its second reading at the House of Lords.
In its existing form, it stipulates that:
- A person must be diagnosed with a terminal illness (in other words, be able to receive treatment to aid their quality of life but not to recover from their illness) in order to ask for assistance with dying. The individual should be expected to pass away within six months.
- Two medical doctors, not from the same clinical team and with no personal relationship to the patient, must declare that the patient has the mental capacity to make this decision and that they are indeed terminally ill.
- An independent panel, including a lawyer, psychiatrist, and social worker, may also be called upon to review each case and sign off on a person’s right to assisted dying.
- It would be illegal to convince or coerce a person into assisted dying. It would also be against the law to coerce or convince the patient out of their decision too.
UK Parliament has made the Bill open to the public, so you can read it in its existing form – and any future versions – in full, if you wish.
Estate planning, protection, and Lasting Powers of Attorney may all be affected if the Assisted Dying bill passes
As a financial planner, the passing of the Assisted Dying Bill would directly affect your clients’ plans. Here’s a breakdown of its potential impact on several areas of financial planning.
Estate planning
Coercion and financial abuse are key concerns for those criticising the Assisted Dying Bill. Sadly, those in financially abusive relationships could be manipulated into a decision, if already terminally ill, by beneficiaries who are motivated by the potential windfall they’ll receive.
While the above is an unthinkable scenario, it could happen. As a financial planner, you could help vulnerable clients to protect themselves against coercion.
Firstly, by flagging up a potentially vulnerable client who you believe is being financially abused – whether they’re terminally ill or not – you could provide the courts with what they need to prevent coercion into assisted dying later on. You might also be able to help your client ensure that their abuser is no longer a beneficiary of their estate.
For those who you believe are not living under financially abusive circumstances, it would still be worth discussing the Assisted Dying Bill (if it passes) and gauging how a client might feel about it. This could help you to inform their estate planning decisions and give you insights into their relationship to their beneficiaries.
In an instance where a client decides to pursue assisted dying, your records and testimonies could be called upon by those signing off on the decision. In short, your involvement in a client’s estate plan could play a key role, either in helping a client make a dignified decision for themselves, or in protecting them against being coerced into assisted dying.
Protection
Perhaps the most obvious area to pay attention to, if the Assisted Dying Bill were to pass, is protection.
Certainly, life insurance providers would need to insert stipulations as to whether a person could still receive a payout if they take the assisted dying route. As it stands, some insurers offer early payouts if the policy holder is deemed terminally ill, to help them cover immediate costs such as funeral arrangements. This might remain the case, or change, depending on the provider’s response to the Bill.
Questions may then arise about existing policies which, clearly, would not already contain wording relating to assisted dying. If providers amend existing policies in a way that their client does not agree with, it could cause an increase in those looking to change providers or cancel their protection altogether. This may be especially pertinent for those with religious beliefs that oppose the Assisted Dying Bill entirely.
Of course, this legislation could spark changes to other forms of protection. Private medical insurance (PMI) providers might need to consider how assisted dying fits into their policies, while those providing income protection and critical illness cover will likely need to take a stance on including this in their cover (or not).
Lasting Powers of Attorney
In its existing form, which is subject to change in future, the Assisted Dying Bill stipulates clearly that the patient must retain full mental capacity before making this decision.
It stands to reason, then, that a person who has lost mental capacity either permanently or temporarily, and has handed over responsibility to the attorney named on their Lasting Powers of Attorney (LPA), would not be able to access this kind of healthcare.
That said, this could change in future, and LPAs may be another consideration to discuss carefully with clients who have a firm stance on assisted dying.
The FCA would likely be required to update its Consumer Duty guidelines
In the event that assisted dying becomes law, the FCA’s Consumer Duty rules would likely be amended to offer IFAs clear guidance on the topic.
Although assisted dying is not directly relevant to finance, it may become relevant to later-life and wealth planning, as you read about above. So, it could be wise to keep an eye on the news to ensure you’re up to date with this potential new legislation.
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Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
All information is correct at the time of writing and is subject to change in the future.
