The power of a POA (Power of Attorney)

A Power of Attorney is a legal document that grants someone else the authority to make decisions on your behalf. It can be a valuable tool for protecting your interests, as well as for ensuring that your wishes are carried out if you become incapacitated or otherwise unable to make decisions for yourself.

There are several reasons why having a POA in place can give you power, including the following:

Control over your affairs: A POA allows you to choose someone you trust to act on your behalf in case you are unable to make decisions yourself. This means that you have control over your affairs even when you are unable to act for yourself, giving you a sense of security and peace of mind.

Protection in case of incapacity: Incapacity can happen at any time and can result from a variety of causes, including injury, illness, or old age. If you become incapacitated, having a POA in place means that your chosen representative (attorney) can take over and make decisions on your behalf, protecting your interests and ensuring that your wishes are followed.

Avoidance of court intervention: If you do not have a POA in place, and you become incapacitated, a court may have to step in and appoint someone to make decisions on your behalf. This can be time-consuming, expensive, and can result in decisions being made that you might not have agreed with.

Having a POA in place can avoid this situation, as it gives you the power to appoint someone you trust to act on your behalf.

Flexibility: A POA can be written to give your representative the power to make specific decisions, or it can be written to give them broad authority over your affairs. This means that you have the flexibility to tailor your POA to your specific needs and ensure that your representative has the authority to make the decisions that are necessary.

We don’t always recommend POAs, but as you can see from the examples above, the older you get or, the more responsibilities you manage, the more value a POA could offer. If you’d like to know more, please chat to Mike or anyone else in our team from Northern Cross Wealth Management and let’s see how this would align with your personal financial plan.

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