Preparing for illness, old age and death
Planning how your money should be handled in the event of illness or death is of great importance. Good planning will ensure you and your family are prepared for any costs that may arise and will allow you to provide for your loved one, easing the burden on them.
Organize your financial affairs
Being well organized about your money can be especially important in your old age, when there is an increased risk of illnesses that might impair you. Simply keeping all your financial documents in one place is a simple and effective first step.
Also keep a clear list of all your finances, such as:
- Your spending
- Sources of income
- Any savings, properties or investments
Handing over control of your finances
It only makes sense to put in place plans should you become too ill to manage your financial matters. A friend, relative or professional adviser can be a great help and you can set up a legal agreement to let them make decisions on your behalf. This is a power of attorney and there are two different kinds that are suitable for different circumstances:
1. Ordinary power of attorney
With this, you are giving someone a temporary right to handle your financial matters. For example, if you are in hospital for an extended duration of time.
2. Lasting power of attorney
This right is given to a chosen individual who will manage your affairs for you on an indefinite, ongoing basis. Unlike an ordinary power of attorney, this remains effective even if you become mentally incapacitated.