Protect your loved ones and your cash in times of need
Will experts explain all you need to know to safeguard your family should the worst happen
whatever your financial status, you could risk losing access to your money if something happens to you or your other half.
However, there is one legal document that would prevent this – a Power of Attorney.
This is “becoming a necessity”, insists Tony Marchi, principal at ILAWS Scotland, experts in estate planning and Wills.
If you and your husband or wife have a joint bank account, you should act now.
If your spouse loses capacity (or incapax), then their banker will be forced to freeze all bank accounts – including your joint one – unless you have Power of Attorney because the law protects those people incapax, both financially and medically.
A POA will also go into effect when you do not have the capacity to make decisions for yourself regarding medical treatment.
Tony Marchi, of ILAWS, said: “A couple of weeks ago, a lady woke up unable to talk.
“Her husband took her to A&E where at first they thought she’d suffered a stroke, but this wasn’t the case. During the consultation the couple were asked by the hospital staff if they had a Power of Attorney in place – they didn’t and her husband was told that he could not make decisions for his wife without Power of Attorney in place.
“The hospital would assume responsibility for her care if she was unable make the decision herself.
“Many people still don’t realise how necessary a Power of Attorney is.” The lady made a full recovery and once she was back home, the first thing the couple did was make an appointment with ILAWS to get their Powers of Attorney in place. Their documents are now with the Scottish Courts Service for registration and are expected back within 14 weeks.
Tony added: “When organising a Power of
You can tailor a POA to work how you want it to
Attorney, it is important to know that you can nominate more than one person to act on your behalf – this can be done under one Power of Attorney arrangement.”
With ILAWS you can have as many Attorneys as you wish (and up to four people) at no extra cost. It is all covered under one fee of £220 (+ £79 for Scottish Courts Service fee). It should be all done at once so you don’t have to pay again and again.
Tony explained: “often, there is one principal Power of Attorney (the main person you wish to handle your financial or medical decisions). But you can appoint people individually or jointly and there are different levels of POA (see diagram above).”
He added: “Essentially, you can tailor it to work how you want it to.”
Another important thing to consider is making sure everyone who needs a copy of your POA has one, eg your GP, so that it will be in your medical records and, if anything should happen, it can easily be accessed and put into action. A copy should also be with your main bankers. POA has a caveat which states that financial attorneys can only act with signed instruction from you to do so, or if a medical practitioner can verify loss of capacity.
The financial planning expert also stressed that you should never think of it as “giving power away” as you remain in total control of your own finances and welfare.
Tony insisted:“it is about putting protection behind you so that if you ever need help, you can get it.”