Date Published: 20/08/2024 08:41
A power of attorney (POA) allows you to appoint someone you trust to make decisions on your behalf if you become unable to do so. Amber River Leodis Wealth’s independent financial planner Peter Blant, highlights what they are - and why they matter…
A POWER of attorney is important for many reasons…
But the main reason why you need to get one in place – if you haven’t already – is because they provide continuity in the event that you’re unable to make important decisions for yourself.
In short, they can be a really important component of the financial planning jigsaw
Please allow me to summarise why they matter – and the main types that are available.
Reasons to create a power of attorney
Types of power of attorney in the UK
Lasting Power of Attorney (LPA): This is the most common form of POA in the UK and it comes in two types:
Ordinary Power of Attorney (OPA): Also known as a general power of attorney, this type is only valid while you have mental capacity. It is typically used for a specific period or purpose, such as if you are abroad for an extended period and need someone to manage your financial affairs in your absence.
Enduring Power of Attorney (EPA): EPAs were replaced by LPAs in 2007, but if an EPA was made before that date, it can still be used. EPAs cover property and financial affairs and can continue to be used if you lose mental capacity, provided they are registered with the Office of the Public Guardian.
In conclusion…
It is typically recommended that you apply for a Lasting Power of Attorney for both property and financial affairs, and health and welfare.
The paperwork is easier and cheaper to complete than in previous years, but it’s also recommended that you take some professional advice along the way.
The team in the Renishaw office of Amber River Leodis Wealth are here to help you at any point on your financial journey – please call us whenever we can be assistance on 01246 435996.
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