When it comes to estate plan documents, many solicitors will advise their clients that a Power of Attorney is one of the most important. It essentially allows another person to deal with your affairs in case you become unable to do so. Below are five facts that are important to note regarding Powers of Attorney:
Power of Attorney needs to be durable in order for it to remain effective upon incapacity
Any Power of Attorney that isn’t durable is void upon incapacity. The document must therefore expressly confirm that any Power of Attorney will be unaffected by subsequent incapacity or disability of the person to whom the Power of Attorney is for (the principal). Just by using this language, the Power of Attorney will be durable.
Powers Of Attorney Can Be Non-Springing or Springing
A Power of Attorney known as non-springing is one that goes into effect straight away. The authority to act on behalf of any principal does not depend upon whether the principal is incapacitated.
A springing Power of Attorney is one that will contain a clause stating that the person acting on the principal’s behalf does not have authority to deal with anything on behalf of the principal unless the principal is incapacitated.
Should you require further advice from solicitors Manchester has a number of options available, including https://bridgelawsolicitors.co.uk/offices/knutsford/.
More Than One Person May Act on Behalf of a Principal Under a Power of Attorney
As it can be an extremely difficult task to undertake all duties on behalf of another person, it is good common sense to have a provision for more than one person acting on behalf of the principal. It is important to think about the people being considered, as they will need to cooperate with each other efficiently. There have been warnings regarding the lack of safeguards in the Power of Attorney system, so it is important that every aspect is considered thoroughly.
There should be a specific authorisation enabling others to distribute your assets as gifts should you intend this. This can be necessary for tax planning and also for planning for longer-term care.
Power Of Attorneys Are No Longer Valid Following the Principal’s Death
A Power of Attorney only remains effective during the principal’s lifetime.