The Function Of The Lasting Power Of Attorney
What would be the implications for your family and other dependants if accident or illness rendered you mentally incapacitated? Questions do not come more unpleasant or important than this. Lasting Power of Attorney is a legal term many people associate with terminal illness and old age, however, even if you are in the prime of your life it is still important to plan for the unexpected. This all sounds rather morbid but peace of mind can be gained from the knowledge that your family would be able to support themselves without your help.
A Lasting Power of Attorney allows a chosen person (attorney) to make decisions for another person (donor) if and when that they ever become mentally incapacitated. Depending on its content the Lasting Power of Attorney grants decision making power over property, financial affairs, health and welfare. The importance of this stems from the fact that you are unable to decide on what happens to assets unless you have legal title to them. For example, if a bank account is in your name only you have the power to draw funds from it. This means your money would become inaccessible if you were mentally ill unless you have given Lasting Power of Attorney over your affairs.
In the UK a Lasting Power of Attorney needs to be registered with the Office of the Public Guardian to become legally valid. A Lasting Power of Attorney comes to an end upon the death of the donor, upon the death of any attorney or attorneys and if the donor or any attorney becomes bankrupt.
Giving away control is a daunting prospect so it is important to think carefully about how it would occur.
Firstly, choosing the right person or persons to be your attorney(s) is crucial. They need to have full mental capacity and you must trust them to act in your best interest. If multiple attorneys are appointed then they must be capable of reaching agreement about how to conduct your affairs. Secondly, the Lasting Power of Attorney must be drafted in a way which meets the objectives you desire. This ensures the attorney will only have decision making power over the area you wish.
The Lasting Power of Attorney has two types.
The first grants power over your property, bank accounts and other investments, state benefits, taxation, debts and legal cases. The second type is a Personal Welfare Lasting Power of Attorney which gives powers over where you live, your care, your health treatment, your contact with other people and access to your personal information.
As mentioned above the powers each type gives is determined by the conditions included when the document is written.
For this reason it is of great importance that the document is drawn up by a suitably qualified legal professional. The complexity of completing the forms almost always call for the skills of a solicitor experienced in filling them out.
Richard Barlow works at McGregors Corporate a financial services firm based in the Midlands UK. McGregors are experts in coordinating corporate and personal legal services. Other services include Accountancy, Audit, Taxation, Wealth Management, Management and Payroll. To Learn more click on one of the above hyperlinks