A person who is nominated as someone’s Power of Attorney for finance and property affairs might have several questions about what their role is and how they can best represent the person who has chosen to nominate them for this role.
It is easy and convenient to organise a Power of Attorney Online thanks to specialists such as https://powerofattorneyonline.co.uk/.
However, forewarned is forearmed – let’s have a look at six common pitfalls an attorney should take care to avoid.
Ignoring Limitations
It’s essential to check any limitations specified within the Power of Attorney before taking any action. For example, the holder may have originally specified that only low-risk investments could take place – so no high-risk stocks and shares can be acquired.
Forgetting to Register the LPA
It’s essential to register the LPA with each financial institution. Without doing this, the bank or building society will not proceed with any transactions the attorney tries to authorise.
Failing to Keep Records
To be on the safe side, it’s essential that you keep honest and transparent records of anything you do under the rules of the attorney, such as transactions or communications.
Disagreeing with Fellow Attorneys
You can nominate more than one attorney, according to Gov.UK, but all jointly appointed nominees must agree on any actions to be taken. Disagreeing over decisions leads to delays in action being taken, which can be stressful and lead to financial loss in terms of lost interest or a property sitting empty.
Making Poor Financial Decisions
There’s no need to be a financial expert, but an understanding of the main financial principles is really important. Without this, someone may make unwise financial decisions and risk financial loss in the process.
Not Asking the Nominator’s Opinion
Even if the person who nominated the attorney is struggling with their capacity to make decisions, it’s still best practice to involve them in decisions where you can. It is important to respect their opinion and wishes at every stage to avoid them feeling as though they have lost control.
