It is hard to consider what could happen if there comes a time when you are mentally unable to make your own decisions; at Four Wealth Management we help our clients to be prepared for every eventuality should the worst happen.
Dementia is becoming an increasing concern to many people. If you are incapable of making decisions for yourself, your family cannot access your money automatically even to fund the costs of caring for you unless you have a power of attorney in place.
If you have not prepared and your family need to take over your affairs, they will need to apply to do so via the Court of Protection. This can often be a long process and the legal fees may become very high. This can cause unnecessary stress on your family members, which can be avoided by having a power of attorney in place.
What is a Power of Attorney?
A Power of Attorney is a legal document giving someone else, often a trusted friend or family member, the authority to make decisions on your behalf if you become unable to do so, if for example you are physically or mentally unwell.
Having a Power of Attorney in place gives you peace of mind that your affairs will be in order should you become mentally or physically unwell. A Power of Attorney only takes affect if you are unable to look after your affairs by yourself.
At Four Wealth Management, we have access to many legal service providers who can arrange a Power of Attorney for you through St. James’s Place.
The writing of a Power of Attorney involves the referral to a service that is separate from those offered by St. James’s Place. Powers of Attorney are not regulated by the Financial Conduct Authority.
What is the difference between a Power of Attorney and a Lasting Power of Attorney?
An ordinary Power of Attorney can make decisions regarding your financial affairs. A Lasting Power of Attorney can make decisions about your financial affairs and property, as well as decisions regarding your health and welfare including medical care and moving you into a care home.
How many people can I nominate as my Power of Attorney?
Legally, there is no limit on the amount of attorney’s you can appoint. However, it is common to appoint between one and four attorneys. Typically a spouse, children or both. If you have too many attorney’s you may find they disagree on decisions or act on your behalf at the same time. However, if you appoint an attorney who dies before you, then you will no longer have a Power of Attorney in place.
When should I nominate a Power of Attorney?
It is never ‘too early’ to nominate a Power of Attorney. It is good to have in place as a prevention measure, particularly if you have dependents, a mortgage or bills that may need to be covered.
You can only set up a Power of Attorney while you are able to make decisions for yourself. As long as you have mental capacity, you can make changes to your Power of Attorney at any time.
A Lasting Power of Attorney will also be able to make decisions regarding your healthcare.
Find out more about nominating a Power of Attorney
Nominating a Power of Attorney is just one of the ways to help protect your estate.
