When planning for your family's future by writing a will and establishing testamentary trusts, you should think about enduring powers of attorney. The enduring power of attorney is an important formal document which is designed to give another individual the right to make decisions on your behalf. In general, you can use this legal element to appoint someone to make suitable choices of a personal and/or financial nature in your stead.
The latter refers to matters relating to the management of your finances such as taxation, bill payments and investments. Personal decisions can encompass your general care, welfare and healthcare. The power of attorney can be highly beneficial in the future if you lose the capacity to make the right decisions. If you are interested in giving someone the powers of attorney, consider this discussion on the important elements.
Requirements for Making a Power of Attorney
If you would like to prepare an enduring power of attorney for the future, you must understand the consequences of the document. In simple terms, you should know which decisions the person can make on your behalf. You can specify the amount of power that the other individual can hold. You should also be clear on the date or situation in which the powers will be activated. It is important to note that you can revoke the powers as long as you have the capacity. However, remember that if you lose your capacity, the individual can exercise their powers freely without your supervision.
Completing the Form
You can prepare an official form giving the enduring power of attorney to your chosen individual without professional assistance. However, you should not take action before consulting your lawyer and other relevant parties such as trustees and financial planners. These parties will offer advice based on your unique circumstances. You can choose one person for both financial and personal matters, or you can elect different individuals for the roles. When your form is completed, you should keep the original somewhere safe, like a bank. Also, you should have enough copies to give to your attorney, solicitor, doctor, bank and accountant.
Choosing an Individual
When you choose to give an individual enduring power of attorney, their decisions will be considered to have the same legal effect as ones you would make. Therefore, you should choose the person with care. In ideal circumstances, the personal matters individual should be a close friend or family. The financial aspects should be handled by a trustworthy person who has displayed exceptional capability in money matters.
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