What is a Power of Attorney?
An attorney is someone who has power to make decisions on your behalf. They are an agent for your financial affairs. A Power of Attorney is the legal document outlining their responsibilities. This document can be prepared by a wills and estates solicitor, who can also provide advice on choosing a Power of Attorney.
What You Need to Consider when Choosing a Power of Attorney
Having a Power of Attorney means someone else can make several types of life-changing decisions on your behalf. Therefore make sure you consider the following items.
1. Choosing the Right Person
Your first instinct when nominating an attorney may be a close relative or friend. However, it is important to consider that they may have to make very tough decisions in the future. Choose someone who is mature and responsible. You should select someone you trust to put your own interests above their own.
2. General Power of Attorney
A Power of Attorney is for a specific task and/or with a specific expiry date. A general Power of Attorney allows you to appoint someone to attend to financial and property related matters on your behalf. The Power of Attorney lasts while you have capacity. It also lasts for the duration of which the specific purpose is to be done. A common example of this is when a company appoints one director to sign all documents on the company’s behalf. Likewise if you appoint your solicitor to sign a contract on your behalf, you are appointing the solicitor as an attorney.
3. Enduring Power of Attorney
There may come a time in your life where you no longer have the mental capacity to make decisions. An Enduring Power of Attorney appoints an someone to attend to your personal financial and property related affairs once you lose mental capacity. The document must be prepared before you lose capacity, and can include things like selling your properties and managing your finances. An Enduring Power of Attorney is not used until you lose capacity.
To discuss your specific needs when choosing a Power of Attorney, and to prepare the documents that best suit you, please get in touch.