Five Minute Read…
(we’ve all got five minutes, right…)
If you were incapacitated who would make legal decisions on your behalf?
Who would be affected if you could not operate your bank account?
How would bills not paid by standing order / direct debit, be made?
Who could sign documentation if you were not able to?
Power of Attorney is often overlooked, its human nature, we don’t like to think it could happen to us. However, in reality it can and does. Then it is too late to put in place during the event.
Incapacitation is not just confined to older age’, life events such as motor accidents or loosing mental capacity temporarily, can require the intervention of a third party.
Powers of Attorney can be relatively simple to put in place, saving both time and expense should they need to be used. Remember, a Power of Attorney cannot be retrospectively put in place.
Whilst older style enduring powers of attorney remain valid, they can no longer be amended, additionally lasting powers of attorney afford more options. For example, lasting powers of attorney can include ‘lifestyle’ wishes such as… a ‘do not resuscitate instruction’.
A lasting power of attorney also allows for ‘soft’ facts to be included, which enduring powers of attorney do not.
Examples:
- An instruction ‘to involve my attorneys with all meetings’, without which your attorneys may not be involved with decision making regarding medical or care decisions.
- If in the future care is required, how you wish that care to be provided i.e. at home or in a Residential Care Home.
Lasting Power of Attorneys are available in two formats and it’s important to note that you can, and should, have both.
- Health & Welfare This covers areas from daily routine such as washing or eating to where you live or medical care.
- Property and Financial Affairs
This covers things like managing bank accounts, paying bills, collecting pensions and selling property.
Registration for both formats is with the Office of the Public Guardian and can take up to 20 weeks. Therefore, it is recommended that power of attorney is registered when created.
- Lasting powers of attorney must be registered before use.
- Enduring powers of attorney, can be used pre-registration only requiring registration if mental capacity is lost.
No new enduring powers of attorney can now be created.
I hope this has been helpful and gives you more confidence to set up this important document. Further up to date information can be found online using the links below. If you’d like more information on Powers of Attorney and how they can have an impact on your wider financial planning please contact me on sam@centralfinancialplanning.co.uk
Plan for the unexpected, enjoy living now…
www.gov.uk/government/organisations/office-of-the-public-guardian
Please note: This blog is for general information only and does not constitute advice.