Who Would Make Decisions If You Couldn't?

When most people hear the phrase "Lasting Power of Attorney", they immediately think about old age.

It's an understandable assumption. Television dramas, newspaper articles and public awareness campaigns often associate the loss of mental capacity with conditions such as dementia, leading many people to believe that Powers of Attorney are documents designed primarily for the elderly.

The reality is rather different.

Loss of capacity isn't always a gradual process. Sometimes it develops over many years, but sometimes it happens suddenly and without warning. A serious accident, an unexpected illness, a stroke or a period of hospitalisation can leave someone temporarily or permanently unable to manage their own affairs.

It's a possibility that many of us prefer not to think about.

Unfortunately, the law doesn't become any more flexible simply because a family finds itself in a difficult situation.

One of the biggest misconceptions I encounter is the belief that a husband, wife or adult child can automatically step in and manage someone else's affairs when they're unable to do so themselves. People are often surprised to discover that being a close family member doesn't automatically grant legal authority to access bank accounts, deal with investments or make financial decisions on another person's behalf.

Without a Lasting Power of Attorney, family members can quickly find themselves facing unexpected obstacles.

Banks may refuse to discuss accounts. Utility providers may be unable to provide information. Investment companies may insist on formal legal authority before they will accept instructions. In some circumstances, family members may need to apply to the Court of Protection for authority to act, which can be both time-consuming and expensive.

At a time when people should be concentrating on supporting a loved one, they can instead find themselves navigating a complicated legal process.

This is one of the reasons why I believe Lasting Powers of Attorney should be viewed differently.

They aren't simply documents for older people.

They're planning tools for adults.

If you're over the age of eighteen, own assets, pay bills, run a business or have people who depend upon you, it's worth asking a very simple question.

Who would make decisions if you couldn't?

The answer isn't always as straightforward as people imagine.

Choosing an attorney involves much more than selecting someone you trust. The role requires organisation, reliability, sound judgement and the ability to make important decisions under pressure. The person you appoint may one day be responsible for dealing with financial institutions, healthcare professionals and a wide range of practical issues on your behalf.

That's a significant responsibility.

It's also a role that should be discussed rather than simply assigned.

Many attorneys don't fully appreciate what the role involves until they're suddenly asked to step into it. Having an open conversation while everyone is healthy and able to discuss expectations can make an enormous difference later.

Loss of capacity doesn't always arrive slowly. Sometimes it arrives in a single unexpected moment.

Preparing for that possibility isn't pessimistic.

It's one of the most practical and thoughtful things you can do for both yourself and the people who care about you.

Estate planning often focuses on what happens after we die. Yet some of the most important planning we ever undertake concerns what happens while we're still very much alive.

---

Contact us today

Let’s make sure you and your loved ones are protected, now and always.

Book your free planning review today

Make time now...for your family and for your peace of mind.