Do you really know enough about Willsand Powerof Attorney?
Important legal documents that you need to organise
When it comes to legal matters, there are two important legal documents that you need to organise – a Will and a Power of Attorney. They are essential because they can help families and individuals during particularly difficult stages in life, as they protect everyone involved.
There can be some confusion about the purpose of a Will and a Power of Attorney, so we asked estate planning expert,tony Marchi, principal at ILAWS Scotland, to explain in more detail about why we need them, and what they can (and cannot do) for us.
What CAN a Will do?
A Will is something every adult in Scotland should have, because a Will can outline exactly how you wish your estate, property, finances and any other assets to be divided when you are no longer here.
A Will can speed up the inheritance process because it is a legally-binding document that is drawn up by estate planning experts, such as ILAWS Scotland, and is actioned by your named executor.
Without one (intestate), it can take a very long time to conclude someone’s estate when they die.
Having a Will can also save your family a lot a hassle and stress, as there will be no arguments about who gets what, as you have clearly outlined your wishes.
What CAN’T a Will do?
A Will CANNOT disinherit your own children.that’s because Legal Rights in Scotland mean that despite what you state in your Will, you cannot exclude children or spouses from a share of your estate, because they will be entitled to claim Legal Rights.
A Will also cannot automatically give your spouse access to funds in your joint account.that’s because money in the joint account does not automatically belong to the survivor, because half of the money has to be included in any valuation as part of the estate.
What CAN a Power of Attorney do?
A Power of Attorney can do many things, including pay bills or withdraw cash for you. Anyone you appoint as an
Attorney can deal with your bank on your behalf and the bank will be aware of this and only deal with that named person to handle your financial affairs.
Your Attorney can also make important decisions on your health or welfare. If you are hospitalised and unable to give consent to medication, treatment or surgery, then your Attorney will be asked to make this decision, as if they
were you.this person is always someone you trust and so they will take your best interests into consideration before making any decision.
Did you know your Attorney can be more than one person? You can have one or two Attorneys, giving them different responsibilities. For example, perhaps your son is particularly good with money while your daughter is better at making decisions.
What CAN’T a Power of Attorney do?
There are also important CANNOTS that are worth bearing in mind. For example, a Power of Attorney cannot transfer money to themselves, or take any financial reward, with or without your knowledge. Your Attorney also cannot make changes to your Will or take control of your life.this is a common misconception. Remember,you are the one who is taking control of your life, because you are choosing who you want to make decisions for you on your behalf, instead of someone you don’t want or don’t know.
A POA cannot make a decision for you if you are able to, so, if they disagree with a decision you have made, whether it is about your care or welfare or finances, they cannot overrule your decision – even if they don’t like it.
Put simply, a Will provides protection after your death while a Power of Attorney (which is available from ILAWS for a limited time only for £192, plus £81 Scottish court registration fee) provides protection during your lifetime.
If you would like to find out more about how to can set them up, visit the ILAWS website ilawsscoland.co.uk or call 0800 049 9688 to arrange an appointment.