Many would regard power of attorney as something to consider later on in life, or indeed something which is needed when a family member or loved one becomes incapable of managing their own affairs, however granting power of attorney can be an important precautionary step.
Mental or physical incapacity can occur at any time following an illness, disability or an accident. This unexpected and unplanned event can leave family members with financial burdens to deal with in addition to the emotional trauma of caring for a loved one. It is often at this point, when a person is unable to consider their own financial affairs, that a family member will seek legal advice. At this stage obtaining power of attorney may not be an option if the person in question is not mentally capable of understanding the implications of the agreement and so the Court of Protection will need to be contacted so that they may make arrangements for managing the person’s affairs.
Choosing someone to take power of attorney over your financial affairs is the only way to avoid having to go to the Court of Protection and gives you peace of mind knowing that you have been able to decide who shall handle your financial affairs should you no longer be in a position to do so. It is advisable to do this as a preventative measure to avoid problems should the worst happen. This will relieve the burden on loved ones who would otherwise find themselves in a position of having to go to Court in order to access your finances.
In addition to this, power of attorney may be needed where decisions need to be made in relation to the health and welfare of a person and they are unable to do this for themselves. Often this is used where medical decisions need to be made. It is important to consider power of attorney alongside your will as both are not just for the elderly and are important means of making decisions about your future and making sure these decisions are known and are legally valid.
BBC one program ‘The One Show’s Power of attorney top tips blog- how to grant control of your finances’ has highlighted the problems which can be faced where power of attorney is not granted and a loved one becomes mentally incapable of managing their affairs. The video contains footage of a woman who was unable to access her husband’s money following an accident which left him in a coma. She had to apply to the Court of Protection and talks about how this process affected her. If you require advice on planning for the future, including granting power of attorney and drafting a will, or you require advice on obtaining control of a family member’s finances as they are no longer mentally capable then please contact us and we will be happy to assist you.
In order for powers of attorney to be legally effective and therefore of any real use, they must be registered with the Office of the Public Guardian which at present costs £130 per power of attorney. The Office Of the Public Guardian have recently announced a reduction in their registration fees from October 1st 2013 making a saving of 15% (the fee will be £110 per Power of Attorney down from £130)
