It is widely believed that your next of kin has an automatic entitlement to manage your affairs for you if you become unable to. In reality, although your next of kin may be asked for their input, they do not have any specific legal rights to make decisions on your behalf.
In this article, Ruby Christie discusses the importance of setting up Lasting Powers of Attorney to grant those you trust with the legal standing to manage your affairs.
A Lasting Power of Attorney is a legal document that allows you to appoint one or more people (your attorneys) to make certain decisions on your behalf. You can choose to appoint trusted family members, friends or even a professional to give you the peace of mind that your affairs will be taken care of should you become unable to manage things for yourself.
There are two types of Lasting Power of Attorney:
1. Property & Financial Affairs – this type allows your attorneys to help you with your bank accounts, any property sales and investments – it can even enable your attorney to manage your business investments, although further advice should be taken in this situation.
2. Health & Welfare – this type allows your attorneys to help you with care decisions, including what medical treatment you receive, and even extends to discussions about life-sustaining treatment.
The process of setting up your Lasting Powers of Attorney with the Office of the Public Guardian (the government agency in charge of registering them) can take up to 3 months to complete. We recommend that you put your Lasting Powers of Attorney in place as soon as you can – not just if you are elderly or in poor health.
You may never need to use your Lasting Powers of Attorney, however once in place, they are immediately ready to be utilised, making life easier for your loved ones, who will be equipped to support you when you need it most.
If you would like to discuss Lasting Powers of Attorney in more detail, please contact the Tax, Trusts and Succession team by clicking here.
