Whilst we all like to think as positively as we can about our future, for all of us, there is a chance that things might not work out quite as we plan. Mental capacity can be lost for a wide range of reasons. Sometimes it can be ill health, a neurological disorder or simply old age.
Losing the ability to make decisions that relate to your own finances and welfare can be a scary concept to understand. However, this is where a lasting power of attorney comes into play.
The idea of a lasting power of attorney is that you appoint them to make these key decisions on your behalf when you are of sound mind. This could be one person, or more than one person, depending on your situation and who you have in mind.
But why is this an important thing to put in place?
The key benefits of having a lasting power of attorney
One of the key benefits of having a lasting power of attorney is that they will be able to give you peace of mind that your needs will be met and that the decisions made about your future are the right ones.
Not only this, but when you choose someone to act on your behalf, this is a legal document. Therefore, when the time comes to make those decisions, there is no input from other family members.
There may be some conflict on this decision, but there will be no conflict or arguments regarding the actual choices.
What happens if you don’t appoint one?
Many people think that if you don’t outline a lasting power of attorney, your partner or other close family members are instantly going to be given this power. However, it is essential to know that this is not the case.
If you do not have a lasting power of attorney, the court will need to be involved. They will pick a deputy on your behalf, and they will be able to make decisions. This may be someone who you already would trust, but equally, it could be someone that you would instead didn’t make those key decisions.
The court will also outline how much power this person has over your decisions.
To apply for a deputyship, your family members will need to use it, and some fees need to be paid for this. Despite paying these costs, there is no guarantee that the court-appointed person will approve them, and any held assets will not be able to be released.
As you can see, it is worthwhile thinking about your lasting power of attorney now rather than later. Else you could end up faced with a difficult situation in the future.
Talking to Kent accountants for probate services is the best idea. Probate experts work with clients on various issues, including power of attorney. We have put together our guide as to why having a lasting power of attorney is essential.
Want to know more about lasting power of attorney and how it can work for you? Talk to Kent tax advisors for expert help. Probate experts can help guide you through the process and help you resolve any concerns or questions that you may have.