Not all estate-planning issues are concerned with death. Adequate arrangements also need to be made in the event of incapacity.

A Power of Attorney allows a person to act on your behalf, including making financial transactions. Such a power may be given for a specific length of time, such as when someone is travelling, but a more general power can be given allowing someone to act on your behalf in a variety of ways.

An ordinary Power of Attorney lapses in the event of incapacity, which is ironically when it would be most needed, whereas an Enduring Power of Attorney continues to operate until death. While a spouse may seem the most appropriate person to appoint, it should be recognised that there is the possibility of a joint accident, such as a car or plane crash. It is usually preferable to also appoint another trusted family member or a professional adviser.

The law imposes duties on the person who holds a Power of Attorney ("The Attorney") . The Attorney must exercise the power "honestly and diligently", keep the estate assets separate and maintain proper records and accounts.

The Power of Attorney can be withdrawn at any time, unless the person giving the Power of Attorney becomes incapacitated.

For more information and advice regarding an Enduring Power of Attorney, please contact our experienced Financial Planning Team.