Whether you own your own home, let out a second property or manage multiple investments, understanding how a Power of Attorney operates in Scotland can assist in the protection of your assets.
What is a Power of Attorney?
In Scotland a Power of Attorney is a legal document which allows you to appoint someone you trust – known as your Attorney – to make decisions on your behalf. It provides the Attorney with permission to make decisions about your money and property as well as your health and personal welfare. In Scotland there are two types of Power of Attorney namely; a Continuing Power of Attorney and the Welfare Power of Attorney.
A Continuing Power of Attorney allows for the management of your property/s and finances, but they do not have a say in any personal welfare matters. Whereas, a Welfare Power of Attorney is in charge of all care and welfare decisions such as deciding where you live and they can provide consent for medical treatment if you were to lose capacity.
In practice, most people combine both into a Continuing and Welfare Power of Attorney. It is important to note that different attorneys can be appointed for each type of Power of Attorney. Further, you may provide what is known as a ‘substitute attorney’. This would come into play when the original attorney may no longer be able to act or simply declines to act.
The importance of choosing the correct attorney for you is essential. The ideal attorney in a property management context would be trustworthy, financially responsible and capable of making practical and important decisions. Many people chose for a close family member or friend. However you also have the option to choose a solicitor or a professional guardian for their expertise.
A Power of Attorney must be registered with the Office of the Public Guardian in Scotland. The aim of the Office of the Public Guardian is to process application within 30 days. However, there is currently a significant backlog. Nevertheless, if your circumstances are time-sensitive, the Office of Public Guardian offer an expedited registration service to ensure matters can proceed without unnecessary disruption.
How Can a Power of Attorney Assist in Property Management:
A Power of Attorney can assist in a variety of circumstances especially within a property context. An Attorney would be able to carry out a variety of actions. To provide an example, your chosen attorney could arrange to ensure mortgages are still paid on time, protecting your home and preventing any unnecessary financial difficulties.
Or, if you rent out properties and repairs are required, this can be carried out to help support any tenants and preserve the condition and value of your property. They can ensure rental incomes is collected which helps maintain your financial stability.
Further, if you required to sell or purchase any further properties your attorney can carry these acts outs.
Finally, the Attorney can communicate and co-ordinate with factors, letting agents, contractors or any other professional required. This ensures all aspects of your property affairs are dealt with efficiently and within your best interests.
What Can Happen if You Do Not Have a Power of Attorney in Place?
Without a registered Power of Attorney your family may need to apply for a guardianship to be granted. A guardianship only applies when a person does not have capacity to make decisions on their own behalf and can take up to six months to be granted. During a stressful time this may incur further costs and lengthy timescales. Therefore, without a Power of Attorney, the person who is appointed by means of a Guardianship may not be the person you would have chosen to act on your behalf and they may not know what your wishes would have been.
How We Can Assist – Power of Attorney Solicitors
In essence, a Power of Attorney is an additional layer of security, which continues to keep your property, finances and wellbeing protected no matter what life throws at you. Ensuring you have picked the correct Attorney to manage your affairs offers additional peace of mind and clarity for your loved ones. If you already have a Power of Attorney in place it is advisable this is reviewed periodically to ensure all information is up to date.
Our Private Client Team in Glasgow and Edinburgh can aid in the creation of a valid, clear and robust Power of Attorney, tailored to your needs. We offer a free initial consultation with a Solicitor to discuss the individual requirements of your Power of Attorney and the costs that will be involved. Get in touch on 0141 433 2626 for legal advice to begin planning for the future of your property management with confidence.
