ASK ROSS: What happens to your property if you are no longer able to make financial decisions or sign paperwork? This month, Ross discusses the best ways to futureproof your ownership…
Our eminent residential property expert, Ross Ward, answers your questions about moving home. If you have a query about buying or selling, email marketing@tayloremmet.co.uk
How do I make sure my family can look after my property if I lose my mental capacity?
When you buy a house, it is important to think about what should happen if you were to suffer a devastating accident, stroke, Alzheimer’s disease or dementia.
If you lose your mental capacity, someone else has to deal with your financial affairs and be in a position to sign papers and documents on your behalf. This involves simple jobs, such as paying the mortgage and the household bills, as well as making important decisions about which residential care home you are to be moved to and whether your house will have to be sold to fund ongoing care. Contrary to popular belief, this right does not pass automatically to your children or spouse.
An application to the Court of Protection is necessary to obtain an order for the appointment of a deputy, who is normally your partner or one of your children. It usually takes several months and is expensive – approximately £2,000. The deputy is then required to prepare annual accounts for the court and there are ongoing charges.
An application to the Court of Protection can be avoided by making a Lasting Power of Attorney. This legal document can be drawn up at the same time as you buy your house and allows you to appoint one or more people to be responsible for your legal and financial affairs, the moment you need a loved one to step in.
To find out more about Lasting Powers of Attorney, take a look at our wills and probate services.
I am selling a property in London using a solicitor based in the city. As I live in Sheffield, I do not want to return to the capital to sign the contract. Can the solicitor do it on my behalf?
The contract can be posted to you to sign and return. Alternatively, if time is of the essence, your solicitor can sign it, provided you have given written permission.
Unless he/she holds a valid power of attorney, you will need to send a letter of authority instructing your solicitor to sign the contract and then proceed with the exchange, which will create a binding legal agreement for the sale.
If you are not the sole owner of the property, your co-owner may sign the contract on your behalf, but again, your solicitor will want to ensure you have given your consent voluntarily and have authorised the individual to sign.
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