When to Activate your Enduring Power of Attorney?
An Enduring Power of Attorney is a lawful document where you as the donor, assign an individual of your choice, which is referred to as the done, to manage your financial affairs and assets if you are not capable to perform so because of a mishap, sickness or your absence. You can also activate your Enduring Power of Attorney if you feel you cannot deal with the complexity of handling your financial affairs. You can activate it instantly or you can defer it for future events. This could be for a fixed period or to carry out a particular task and you can revoke it any time you want, providing you don’t have the capacity to do so mentally.
You need to affix your signature in your Enduring Power of Attorney and you should be in a good mental state to do so. The donee should accept the selection as your attorney by affixing your signature as a sign of acceptance. Your attorney will have access over your financial and assets or in a particular part of them. If in case you lose your mental capacity to handle your affairs, your lawyer will handle all your assets, pay your bills and collect your income. Once you die, the Enduring Power of Attorney stops, then the executor named in your behalf will handle it for your estate. Assigning an attorney is a must for your financial planning together with the creation of the Will and assigning an executor to manage your estate after your death.
A Sample Case of Enduring Power of Attorney
A couple named Edna and Jack both at 80 suffered a stroke recently and is at the hospital waiting for a nursing home placement. Because of the seriousness of Edna’s condition she was not able to return to their family home because she requires a very high level of attention. She also lost her mental ability to carry out her own financial transactions.
Jack is having a hard time handling with the stresses of this present condition. He is not able to comprehend the complex financial needs for Edna’s nursing home placement. He prefers to visit Edna more often but since he can only move slowly, he finds himself spending most of his time on the household chores.
Luckily, Edna and Jack were able to plan ahead for any situation that might happen in the future. The couple has an Enduring Power of Attorney and Will with Public Trustee. After discussing Edna’s condition with the medical practitioner, Jack learned that Edna is no longer capable of making her own financial decisions and is not capable to handle her own financial transactions. Jack forwarded the medical opinion to the Public Trustee and asks that Edna’s Enduring Power of Attorney be activated. He likewise decides to put the load of handling his own monetary affairs with Public Trustee and ask for his Enduring Power of Attorney to be activated.
To discuss with their financial requirements and to note their relevant requests, a New Estates Officer talks with both Edna and Jack at the hospital. The Public Trustee creates accounts for Edna and Jack and arranges for receipt of their money to their accounts and payment of their expenditure. The Public Trustee supervises the complex nursing home transfer requirements for Edna and assists Jack to start some in-house services to help him with his everyday living needs. As Jack keeps capacity, he communicates regularly with the Public Trustee, giving direction for considerable decision-making and keep the Public Trustee up to date with his personal budget requirements. With this regard, Public Trustee likewise discusses with Jack about Edna’s personal financial requirements.
Public Trustee handles all of the daily financial tasks for Edna and Jack. Jack thinks that the weight of his condition has been elevated from him. He will have more time to spend with Edna and regularly help her with her therapy.