Giving someone a power of attorney means you give someone else the right to make financial decisions on your behalf. Most people might think this is only for the elderly, who appoint their family members to take care of their affairs when it gets too much for them to manage. This is only one type of powers of attorney, called the Enduring power of attorney.
The other type is called a General power of attorney. This is where you can appoint someone to act on your behalf for a set period of time. This is useful for times when you might be overseas for a long period of time, or just want to take a break for an extended period. During this time you can appoint someone to make financial and legal decisions on your behalf, such as;
- paying your bills
- managing your investment properties
- selling your house if needed etc
You can set the period of time this person manages your affairs for you, so you will not be locked into this agreement for the rest of your life.
The Enduring power of attorney option is when you appoint someone who will make financial and legal decisions for you, if in the future you lose the capacity to do so.
This is best done when you are in a healthy state of mind. The Enduring power of attorney only comes into force when and if you ever lose the capacity to make your own financial and legal decisions, such as if you were to have a stroke or develop dementia.
Your Enduring power of attorney can;
- manage your bank accounts
- pay your bills
- buy or sell property on your behalf.
This differs from a legal guardian who can make lifestyle and medical decisions on your behalf. A power of attorney only manages your financial and legal affairs.
YouFinance can help you choose who to appoint, and guide you through the process of appointing either a General power of attorney or an Enduring power of attorney. Contact the team at YouFinance now to make sure your future is safe and protected.