Future power of attorney - what is it and why should you create it?

In our experience, a good number of people do not realise what opportunities a future power of attorney can give you until it is too late. We also realise that many people have not thought through all the potential outcomes and need advice on what might be wise to include or not include in a future power of attorney.

By drawing up a future power of attorney, you will be able to regulate what you want to happen to you in the future if, for one reason or another, you are no longer able to look after your own interests, for example because you have developed severe dementia or have been involved in a major accident. The future power of attorney can also appoint a single person, or several people, to make decisions on your behalf when you are no longer able to do so. The authorised representative(s) could, for example, sell your home or make healthcare decisions on your behalf.

 If you are no longer able to look after your own interests and you have not established a future power of attorney, the State Trustee will appoint a guardian to look after your interests. If you do not have a spouse or siblings, a stranger may be appointed as your guardian. Guardianship also entails many limitations, especially when compared to the possibilities offered by a future power of attorney. For example, guardianship means that no loans can be taken out on your behalf, no advances on inheritance can be distributed, and there are also limitations on the right to dispose of any proceeds from the sale of your home.

As you can largely design your future power of attorney exactly as you wish, this is a very practical solution that protects you in the event that you can no longer look after your own interests.

A future power of attorney can, for example, contain:

• Disposal of accounts and other securities
• Payment of bills
• Representation to public authorities
• What will happen to your home
• The possibility of making gifts and inheritance advances
• Who should be authorised to make health and medical decisions on your behalf

There are certain formal requirements that must be met for a future power of attorney to be valid. As there is a great deal that can be regulated in a future power of attorney, and there are often certain topics that are not necessarily considered when drawing up a future power of attorney, you will benefit greatly from the assistance of a lawyer in drawing up a future power of attorney.

Of course, we hope that you will not have to use a future power of attorney, but in the unlikely event that something happens to you, a future power of attorney that is customised for you will protect you to a very large extent. Feel free to contact us for assistance in preparing your future power of attorney.

Contact us for assistance in setting up a future power of attorney by phone 64 84 00 20 or [email protected]