How to use professional connections to do succession planning
By Mark Battersby, 9 Jun 16
In the first of a series looking at wealth and succession planning from a legal perspective, Edward Stone, partner at Irwin Mitchell Private Wealth, explains how lawyers and investment advisers can work together to ensure their clients’ wealth and succession objectives are fully met.
Basic Planning Step No 2: Preparing for mental incapacity
As longevity increases so does the risk that mental incapacity may afflict people. It is therefore increasingly important that people should make provision for managing their financial and welfare affairs in the event of their mental incapacity, particularly as this could last for a number of years.
Courts typically have power to appoint someone to manage the affairs of a person who has become mentally incapacitated, but the procedure may be costly and time-consuming.
In many countries, it is possible to give a power of attorney which, provided certain formalities are complied with, continues in effect after the donor of the power becomes mentally incapacitated so that decisions relating to his affairs are then made on his behalf by the person he has chosen.
In many cases, it may be appropriate to appoint a family member but otherwise a trusted adviser can be appointed.
In the UK it is also possible to give power of attorney over health and welfare under which the attorney can, for example, make decisions about the donor’s medical treatment (including refusing treatment on his behalf), where he should live and his day-to-day care.
Tags: HMRC | Irwin Mitchell
