With more time than I would have liked spent in hospital this week (with a sick child who is thankfully now home), I had plenty of time to reflect on how health can impact on decision making when it comes to property. Whether it be as simple as finding the time to find information or as complicated as having to sign legal documents in times of stress, (ill) health has a massive effect on life decisions and its something that is worth preparing for – as well as you can.
As healthy as we might be when we wake up, there is always the potential for something to go horribly wrong – be it an unexpected illness, accident or even a planned for event that goes south quicker than anticipated. Should that “worst thing” happen though and a decision needs to be made in your absence – need for funds, change of home to suit new needs or moving closer to family – then a Power of Attorney can make all the difference.
A Power of Attorney appoints someone (typically a spouse or other family member) to act on your behalf in health or legal matters. Essentially, able to make decisions and sign legal documents as you. These have to be prepared in advance, and witnessed by a solicitor, Justice of the Peace or similar, and can have either immediate effect or be restricted to when you are incapacitated or unable to make decisions on your own. Obviously when appointing an Attorney, make sure they are high on your “most trusted” list, as decisions made on your behalf are binding on you.
Having gone many years without this protection in place myself, it took seeing a case of the damage caused by its lack that spurred me to see the benefit. Think elderly couple selling to relocate closer to family, contract happily signed but the husband (the only on-title owner) falling seriously ill and then passing away prior to settlement. Cue a wife unable to act in his absence, a property in limbo for months, and potentially a hefty legal bill and a lot of added heartache at the worst possible time. This could equally apply with an elderly parent needing rehoming, and unclear instructions or lack of instructions can make for a hell of a mess.
As is often the case, this column should serve as a nudge to seek the right advice from legal professionals – your solicitor or potentially a financial advisor – not your friendly local real estate agent.