The time to look at a Power of Attorney is before someone loses mental capacity.
When an ageing parent starts struggling with banking, paperwork or day-to-day finances, many families assume a Power of Attorney is the obvious next step. The reality is that the document only works if the person signing it still fully understands what they are agreeing to – a detail that often only becomes important when families need help most.
Power of Attorneys have general application – some circumstances include when a person is travelling overseas and appoints someone to manage tax filings, or when they cannot handle paperwork while recovering from surgery, says Malissa Conlin, director and general manager at Brenthurst Global Wealth.
A Power of Attorney is “about protection. It ensures that your affairs remain manageable when life becomes unpredictable,” says Conlin.
“A general Power of Attorney gives another person the ability to act in your place when you are not physically present,” explains PJ Veldhuizen, founder and MD of Gillan & Veldhuizen Inc.
