The power of attorney is a responsibility that falls to many of us at some point of our lives. The precise role of a power of attorney, and when this responsibility is required are the most common questions asked of us. There’s no one person that doesn’t require assistance at some point in their lives. For this reason it’s imperative to understand the nature of a power of attorney.
The power of attorney allows you to choose the person that you trust the most to handle your affairs should you personally become unable to do so. There are a number of times when the power of attorney is considered a necessary action. These are as follows:
At times of illness when you need assistance with your financial affairs
Should an accident befall you and you’re unable to work.
If you decide to take an extended holiday and you need someone to manage your affairs
When you become too old to work yourself, yet you have a business that requires attention. In this case you can assign the power of attorney to another individual.
Those occasions when your business expands and you need assistance manage the responsibilities.
As you can plainly see it’s evident that the power of attorney is a necessary to appoint a power of attorney. The person chosen should be someone trustworthy and that you’re happy to work with – building a long lasting relationship. This trust is essential for the formation of a relationship to last.
Once you’ve chosen a power of attorney, it’s prudent to not hand the utmost authority to that person. You should always retain ultimate control over your assets. Astute individuals will hand over a small amount of control over to the power of attorney, whilst retaining the bulk of control themselves. As the relationship progresses you can choose to hand increased powers over to your power of attorney. This is a decision to make as you go along.
It’s imperative that you hand the power of attorney across to an individual with accurate knowledge of your business. If training is necessary then it’s important that you educate your power of attorney accordingly. It’s also important that anyone with direct contact with the power of authority understands that they are now a decision-maker.
Many individuals choose to hand the power of attorney over to their children or the closest sibling they have. In some cases this decision may cause controversy, however it’s in the best interest of the children and any employees to work together as a unit to achieve all common goals.
The power of attorney is a necessary responsibility – one that must be undertaken by all responsible individuals. This responsibility must be accepted and all parties in agreement; working towards a common goal is the end game.