The Problem With Not Having a Power of Attorney

Avoid Government Officials Being Appointed

Keep Control of Your Finances Within Your Family

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Certain financial commentators have stated that having a Power of Attorney is at least as important as having a will. After all, a power of attorney helps you and your family whilst you are still alive and so, in that sense, is a more immediate and pressing concern. In order to be able to understand why not having a power of attorney is such an important problem, we need to first understand that there are essentially two types, namely:

* Property and Financial Power of Attorney
* Health and Welfare Power of Attorney

I will explain the problem with not having the first of these as it is the most common.

Property and Financial Power of Attorney

This document, if properly registered with the Office of the Public Guardian (OPG) provides the solution to the following scenario:

We all like to think we will continue with our current level of health for the rest of our lives. However, we are surrounded by clear evidence from other people's situations which show that guaranteed continous mental capacity cannot be take for granted or guaranteed. Situations such as:

* An accident at work or on the road
* A stroke
* A diagnosis or operation that leads to temporary incapacity
* Dementia or other disease leading to permanent incapacity

These are just examples but in the event that you are unfortunately in the position of not having capacity to make decisions for yourself for any reason, UNLESS YOU HAVE A POWER OF ATTORNEY ALREADY/PREVIOUSLY IN PLACE then it is by then too late to arrange one and the following automatically occurs:

* Frozen Assets: Banks will freeze sole accounts, making it impossible for loved ones to pay your care fees or utility bills without legal authority

* Court of Protection Application: A family member must apply to the court to be appointed as a deputy to handle your finances and property

* Costs and Delays: Becoming a deputy takes several months, involves high application fees, and requires ongoing annual supervision fees to the Office of the Public Guardian

* Loss of Choice: You cannot choose who manages your affairs. The court decides who acts as your deputy. In certain cases, this could end up being someone official that you don't know. And they will need to be paid for their time.

* Joint Property Issues: Selling a home or managing joint assets becomes difficult, often requiring the deputy to act for you.

The positive thing is that it is possible to prepare for this and so please Click here to read about the solution.