Marriage doesn’t cover it when you are kidnapped
Posted: Monday 20 February 2012
A recent news story by the BBC reported that the Mexican Ambassador to Venezuela and his wife were seized from their car and kidnapped. You can read more here. Although it is likely that they will have had slightly more pressing matters to worry about than the management of their financial and personal affairs in their absence, the story got us thinking about how well placed any of us would be if we found ourselves unexpectedly indisposed or incapacitated. Most people are aware that a Power of Attorney can be used to manage an individual’s financial affairs and general welfare if they are incapacitated through illness or injury. However, a Power of Attorney can be surprisingly useful for business travellers too. Whether due to immigration or travel disruption, you may on occasion find yourself stuck out of the country unexpectedly. In such circumstances, only having a Power of Attorney will ensure that your affairs can be managed without resort to the Courts.
It is an urban myth that marriage empowers one spouse to act on the other’s behalf for all financial or welfare matters. What is required is a Power of Attorney.
Power of Attorney
A Power of Attorney is a written document where you, as the granter, can appoint one or more trusted persons to manage financial and/or welfare matters on your behalf should you be unable to deal with them yourself for any reason. It can be viewed similarly to an insurance policy – hopefully never needed, but there just in case it is. Without a Power of Attorney, an application to the Courts to have a guardian appointed is required, and this can be a lengthy and expensive process.
Financial Powers
Financial powers provide the Attorney with the right to operate any bank accounts, sign tax returns and to act on your behalf in relation to any business you are an owner or director of. An Attorney given financial powers can be authorised to act before or after capacity is lost. You may wish to grant financial powers to an Attorney for example, if you are going to be out of the country for a significant period of time. You can appoint your solicitor as your Attorney to act on your behalf.
Welfare Powers
Welfare powers can allow an Attorney to make decisions about a person’s welfare such as their care, accommodation, and medical treatment. A Welfare Attorney can only act once the granter has lost capacity and is no longer able to make such decisions. If you do not have a Power of Attorney, the Court can appoint a guardian through a long and costly process. However, you may prefer to have someone you trust, and are comfortable with making such decisions on your behalf, to act as your Attorney. This can only be done whilst you are still capable.
Morton Fraser acts for a wide range of clients who have granted Powers of Attorney in differing circumstances. We have specialists with vast experience in drafting Powers of Attorney and in depth knowledge of the applicable legislation.
Please contact Morna Coutts, a specialist in this area, at morna.coutts@morton-fraser.com or on 0131 247 1089, for additional information.
