Welcome to Age Space Money, the podcast that gives you insight, ideas and perspectives on elderly care and finance. This podcast is presented to you by Annabel James, founder of Age Space, which is an online community for anyone looking after, or supporting, an elderly parent; and Jason Butler, financial wellbeing expert and author of “Money Moments: Simple Steps to Financial Wellbeing“.
Jason explains what a Power of Attorney is
A Power of Attorney is a document you sign which gives authority to someone else, or to other people, to deal with certain aspects of your health and medical care, and your financial assets, in the event that you lose your mental or physical capacity, or are not otherwise able to authorise the decision yourself, for example, if you are out of the country on business.
Powers of attorney can be lasting or limited:
- Lasting Powers of Attorney are in place for the duration of the rest of your life, until you revoke or replace them.
- Limited Powers of Attorney are where you give authority to someone one to make certain decisions on your behalf, for a specific thing(s), or within a limited time period.
There are two key areas for which you can grant an LPA; These are for:
- Your Financial and Property Assets;
- Your Health and Wellbeing, and Medical Care – this one is essential.
Jason explains his 3 Golden Rules of Lasting Powers of Attorney
- Think carefully about who you appoint. This needs to be someone you trust, who you believe will honour your wishes and interests. If you are worried about giving this to a son or daughter, you can appoint another person alongside them to provide a check and balance.
- Decide how wide or narrow you want to make your LPA, i.e. do you only want this to apply when you have lost your capacities to make decisions for yourself, or do you want to grant an “all ski-pass” to designated trusted individuals who can make decisions on your behalf at anytime when you are indisposed?
- If you have a Finance and Property LPA, and have an investment portfolio being managed by someone else, you need to grant specific powers in order to delegate investment and custody of your assets to a third party nominee and investment manager, in the event that you can no longer instruct the person managing your assets. So, if you want someone else, such as your children, to be able to step in to manage your assets in a situation like this, you will need to grant them ‘delegated investment manager nominee services’.
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