What is a Power of Attorney?
A power of attorney is a legal document made by one person “principal” that allows another person to do things with the principal’s money, bank accounts, shares, real estate and other assets. This can include spending and managing the principal’s money, buying or selling shares for the principal or buying, selling, leasing or mortgaging the principal’s house or other real estate.
The main types of Power of Attorney are:
- General or Ordinary Power of Attorney – will terminate if the principal loses mental capacity. It is useful for a short term appointment, for example if the principal is going overseas for a short period.
- Enduring power of attorney is one which continues to operate after the principal has lost mental capacity. This document is frequently used as part of succession or estate planning
It’s very important that a Power of Attorney is prepared before you need it as once you lose mental capacity you cannot make the appointment of your choice.
It’s a quick process so don’t hesitate to contact us, you will avoid a lot of future complications.