Powers of Attorney: Common myths unpacked

Everyone knows the importance of planning ahead. Unexpected events can occur at any time, making it difficult for you to manage your own affairs. Having a Power of Attorney (PoA) is the simplest way to ensure that those you trust can act on your behalf.

However, common misconceptions surrounding PoAs can prevent people from putting one in place, despite their importance. Here are a few of the most common myths that might be holding you back:

“My next of kin will take care of things”

It is a common belief that a spouse, child, or other close family member will automatically have the right to make decisions if someone becomes incapacitated. However, in Scotland, next of kin do not hold any automatic legal authority over medical, financial, or general welfare matters.

By planning ahead, and putting a PoA in place, you can ensure that your affairs will be managed by someone chosen by you, according to your wishes, and without unnecessary delays or expenses.

“I’m too young to need a POA”

Many people mistakenly believe that PoAs are only for the elderly. However, in Scotland, anyone over the age of 16 can put a PoA in place. It’s a good idea to have one in place regardless of age, as unexpected events can happen at any time. Whether it’s illness, an accident, or any other unforeseen circumstances, a PoA ensures that trusted individuals can step in and manage your affairs, when necessary.

“I’ll lose control of my finances”

Another misconception is that appointing an Attorney means losing control of your finances. This is not the case. A PoA can be tailored to suit your specific needs, ensuring that you maintain full control over your financial affairs for as long as you are capable. You decide the extent of the powers granted to your Attorney, meaning they can only act within set limits, such as the financial (Continuing) powers coming into effect only if you become incapacitated, allowing you to maintain control until absolutely necessary. Additionally, you can change the terms of the PoA at any time, as long as you have the capacity to do so.

“I can sort it out later”

Once you have lost capacity, it is too late to prepare a PoA. Without one in place, family members may face significant challenges in managing your affairs and may have to apply to the court for Guardianship, often a time-consuming and costly process. A Guardian also has to account annually to the Office of the Public Guardian for their dealings with your finances.

Also, when preparing a PoA, you decide who to appoint as your Attorney(s) to deal with your affairs. Whereas any party interested in your affairs could apply to the court to be your Guardian, which can give rise to conflicts among family members about who should take charge.

Being proactive and putting a PoA in place can save time, money and unnecessary stress for your family.

Conclusion

Understanding these common myths should help you make informed decisions and provide peace of mind about putting a POA in place.

Contact our Private Client team today to learn more about how we can assist you in setting up your Power of Attorney.