Managing personal finances and investments can be a complex and time-consuming task. In the event that you are unable to handle these responsibilities yourself, having a trusted person to act on your behalf is crucial. This is where a power of attorney comes into play.
A power of attorney allows you to appoint a person, known as an attorney, to make decisions about your money and property on your behalf. This can include tasks such as managing investments, collecting pensions, and selling properties. Unlike a health and welfare power of attorney, which can only be used when you are unable to make decisions for yourself, a property and financial affairs power of attorney is activated as soon as it is registered.
Without a power of attorney in place, if you lose the ability to manage your financial affairs, your family or friends would have to apply for a deputyship order from the Court of Protection. This can be a lengthy and complicated process, potentially leading to financial loss or other complications. It is important to choose your attorney carefully, ensuring they are reliable, financially savvy, and willing to act in your best interest.
While family members or friends are commonly chosen as attorneys, professional attorneys such as solicitors can also be appointed. Additionally, you can appoint more than one person, allowing you to combine the expertise of a professional with the insights of a family member or friend. Once you have chosen your attorneys, the necessary forms can be found on the government’s website, and the registration process should be completed promptly to avoid delays.
For business owners, a separate business power of attorney should be considered to ensure the smooth running of the business in the event of incapacity. Without a designated person to make key decisions and handle day-to-day operations, a business could face significant disruptions and financial losses. Making a business power of attorney can help mitigate these risks and ensure the continuity of business operations.