Why A Power of Attorney May Be Just As Important As Your Will

Every Adult Should Consider Having A Power Of Attorney

A power of attorney is probably one of the most important legal documents an adult can have.

In some circumstances, I would say it is every bit as important as a Will.

A Will deals with what happens after you die.

A power of attorney can become critically important while you are still alive.

And sometimes that importance becomes apparent very suddenly.

What happens on a bad day?

Think about what happens if, on an otherwise ordinary day, something goes badly wrong.

A stroke is an obvious example.

You may be alive, but temporarily or permanently unable to deal with your own financial affairs.

The problem is that banks, financial institutions, government departments, service providers and the many other organisations we deal with in everyday life are not simply going to accept instructions from someone else even if that person happens to be your spouse, partner, child or parent.

Nor should we assume that being a joint account holder necessarily solves every problem.

It is not that simple anymore.

Privacy, identity protection and cybersecurity are rightly taken very seriously.

Organisations are increasingly careful about who they will speak to, whose instructions they will accept and who has authority to act.

That is why a properly considered Power Of Attorney can be so important.

Every adult should at least consider one

My own view is that every adult should consider having a power of attorney.

Certainly, once you are over 18, it is worth asking the question.

A power of attorney concerns financial and legal affairs rather than personal or medical decisions, but those financial matters can be enormously important.

Bills still need to be paid. Property may need to be dealt with. Banks and financial institutions may need instructions. Government agencies, insurers, accountants and other organisations may need someone authorised to act.

If you cannot do those things yourself, who can?

And, importantly, will those organisations recognise that person as having the authority to act for you?

Already have a power of attorney? Look at it again

Having made a power of attorney once does not mean the subject should never be revisited.

Circumstances change.

Relationships change.

People get older.

The person you appointed ten or fifteen years ago may no longer be the person you would appoint today.

So there are some sensible questions worth asking.

Have you made a power of attorney before?

If you have, when did you last look at it?

Are you still comfortable with the person you appointed?

Should you appoint an alternative or backup attorney?

Should there be one attorney or more than one?

And if you are no longer comfortable with an existing appointment, is it time to revoke it and put a new arrangement in place?

Who should you appoint?

This is one of the most important questions.

It is very common for spouses or partners to appoint each other.

As people get older, it is also common for adult children to be appointed, either immediately or as alternatives.

But age itself can become an issue.

If you are getting older and the person you have appointed is also getting older, it may be sensible to think about who could act as a backup.

You need to trust them.

Deal with it while capacity is not in question

There is another very practical reason not to leave this too late.

These arrangements are much easier to put in place while there is no question whatsoever about your capacity to understand and make the appointment.

Once capacity becomes uncertain, things can become considerably more complicated.

That is why this is better dealt with in advance, rather than during a crisis.

Those issues are far easier to consider beforehand.

The starting question is a simple one

Do I have a power of attorney?

If the answer is no, it may be time to consider whether you should.

If the answer is yes, the next question is:

Does the document I have still reflect what I want today?

If you would like to discuss making a Power Of Attorney or review your existing estate planning arrangements, contact me Paul Ippolito at Ippolito Lawyers to arrange an appointment.

This article is general information only and does not constitute legal advice.