Power of Attorneys: Safeguarding Your Future

There may come a time in your life when you are unable to manage your financial affairs or personal welfare due to some form of incapacity. This could be due to illness, injury, or even old age. When such a time comes, having a Power of Attorney (PoA) in place can be invaluable. It ensures that someone you trust can make decisions on your behalf, providing peace of mind and removing the anxiety of unpaid bills or unmanaged affairs.

Understanding the Different Types of Powers of Attorney

There are three primary types of PoA:

1. Lasting Power of Attorney (LPA) for Property & Financial Affairs: This authorises the Attorney(s) to make decisions about the Donor's property and affairs. This could include buying property in the Donor's name, selling property belonging to the Donor, managing their investments, continuing to run their business, and making decisions about the Donor's healthcare and payment for this care.

2. LPA for Health & Welfare: This covers decisions about a Donor's personal welfare, which can include where they live, how they are cared for, and what healthcare they receive.

3. General Power of Attorney (GPA): A GPA allows the Attorney to make decisions and act in any matters relating to the Donor's property and affairs.

Choosing the Right Attorney

You can appoint a friend, relative, or a professional as your Attorney. This allows them to act on your behalf. It is important that you choose people you can trust to act in your best interests, giving consideration to how they manage their own affairs. It is always a good idea to appoint more than one Attorney to ensure that this power is not abused.

The Importance of Regular Reviews

Nominations can normally be changed at any time - for example, a change in family circumstances - and should be regularly reviewed to ensure that they continue to be in line with the member’s wishes and the needs of their beneficiaries, whilst providing tax efficiency.

In Summary

Powers of Attorney form a significant part of personal wealth management and demand serious consideration when it comes to wealth transfer. Regular reviews are essential. Ensuring that current wishes are clearly communicated to providers is a simple task and ensures that beneficiaries have all the options for taking their benefits.

Don't leave your future to chance. Contact your local today for more information on setting up a Power of Attorney. Visit our website at www.mywillplan.co.uk for more information.