Power of Attorney
1 May 2008
One last thing that you need to think about when you are drafting a Will or setting up a Trust is to arrange a Power of Attorney.
So what does Power of Attorney mean? Power of Attorney simply means that, should it be necessary, someone else such as a trusted friend or a member of the family, takes charge of your financial affairs.
It may be that you are sick, no longer able to make decisions for yourself or even something more straightforward such as time spent traveling overseas. Should anything happen to you, they can quickly pick up the reins and look after things in your absence.
Too often people focus on what will happen when they die rather than protecting their assets and themselves whilst they are still very much here.
Until recently, an arrangement called an Enduring Power of Attorney (EPA) could be set up allowing you to appoint someone to do this. Recent changes in the law mean that from now on you will have to apply for a Lasting Power of Attorney (LPA).
An LPA allows you to nominate someone you trust to make financial decisions on your behalf.
It is usually employed by people who are seriously ill and perhaps fear losing their mental or physical capacity. But it could simply be employed on a fixed term basis, such as when you are out of the country.
Existing EPAs set up before 1 October 2007 are, of course, still valid.
To find out more about setting up an LPA, contact the Office of the Public Guardian at www.publicguardian.gov.uk
Remember, you may need to rely on others’ help at any time in your life not just when you are very old.
