There needs to be more clarification and myths regarding Power Of Attorney. Many of us presume we don’t require one, or it is something that can be sorted out in the future, but let us highlight why you should immediately have this important document put in place.
Some of the common misunderstandings when it comes to POA are;
1. “I have a Will in place”
Having a Will in place is great, and it protects your beneficiary’s interests after you have died. A Power of Attorney protects your interests while you are still alive until you die. Having a POA in place means that if you cannot make your own decisions, you have someone legally appointed to do this for you.
2. “POA is for the elderly”
Many assume that POA is only for older people with mobility or health issues. This is not true. No one knows what is around the corner, and accidents or illnesses can happen at any time or age. The important thing about registering a POA is that you must have the capacity to ensure you can appoint someone on your own, so why delay the process? In the unfortunate event you lose capacity tomorrow due to an accident or sudden illness, it would be too late to get a POA in place, resulting in a stressful situation for your family. If you lose capacity and do not have a POA, you must apply for Guardianship through the courts, which is lengthy and expensive. We recommend that everyone gets a POA, regardless of health and age.
3. “My family will look after me..”
Many people don’t set up a POA because they think that their family, for example, their Spouse, will automatically be appointed to make decisions on their behalf in the unfortunate event they can’t. It would be best to have a POA to ensure your ‘next of kin’ has no legal rights, including health and financial decisions. If no POA exists, these decisions are left to the relevant professional. Remember you need mental capacity when organising your POA; don’t wait until you’re in the situation where you need it, as it might be too late.
4. “I don’t have the money…”
Another common myth surrounding POA is that people with little or no assets think they don’t need a POA because there isn’t much to be done with their finances. Remember, a POA isn’t just for financial decisions; it’s also for health decisions. Suppose you have an attorney in place and are unlucky to fall ill. In that case, your trusted attorney will have the right to decide treatment and your well-being. Also, an attorney can manage your finances on your behalf, so even if you don’t have a lot of money, there may come a time when you need assistance. Your attorney will be in place to make your life easier in difficult circumstances.
Why You Should Not Delay Setting Up a Power of Attorney
As highlighted above, the misconceptions surrounding Power of Attorney (POA) can lead to severe consequences if not addressed promptly. Understanding and acting on the need for a POA is essential for safeguarding your future and that of your loved ones.
Protecting Your Interests
A POA is a vital document that ensures your interests are protected during your lifetime, especially if you become incapacitated. Unlike a will, which comes into effect after death, a POA operates while you are alive, enabling someone you trust to make crucial decisions on your behalf.
Not Just for the Elderly
Accidents and illnesses can happen to anyone, regardless of age. Young people, as well as older individuals, should have a POA in place. The key factor is the capacity to appoint someone. Waiting too long can result in losing the ability to make this crucial decision yourself, leading to potential complications and a stressful situation for your family.
Family Assumptions
Many believe that their family will automatically be able to make decisions for them. This is not the case. Without a POA, even close family members like spouses may be permitted to make health or financial decisions on your behalf. It can lead to decisions made by professionals who might not know your preferences, or it can force your family to go through a lengthy and costly court process to gain the authority to act.
Financial and Health Decisions
A POA is not solely about financial matters. It also covers health decisions. Having someone you trust with the authority to make health-related decisions can be crucial if you cannot do so yourself. It ensures your wishes are followed, and your personal well-being is managed according to your preferences.
Taking Action
Setting up a POA involves:
- Selecting Your Attorney: Choose a trusted individual who can decide. It could be a family member or a close friend.
- Drafting the Document: Clearly outline the powers you are granting. It includes financial, health, and personal decisions.
- Registering the POA: Ensure the document is registered correctly to make it legally binding and enforceable.
Regular Reviews
Like any important document, a POA should be reviewed regularly, especially after significant life changes such as marriage, divorce, or the birth of a child. Regular reviews ensure that the document remains up-to-date and reflects your current wishes.
Conclusion
A Power of Attorney is an essential part of planning for the future. It ensures that your personal, financial, and health decisions are made by someone you trust if you cannot make them yourself. Misunderstandings and myths about POA can delay setting up this crucial document, potentially resulting in complicated situations for you and your loved ones.
Don’t wait until it’s too late. Contact I Laws Scotland today to learn how we can help you set up a Power of Attorney. Ensuring your future is secure and your wishes are respected provides peace of mind for you and your family.
