By: Edward Hewitt
Whether you are an active property investor building a large portfolio, or an accidental landlord having inherited a property that you have kept, or anything in between, you may need to give a little thought to your long-term plan
Working with property can be involved and complex. While there can be a perception that you can sit back on a property investment and watch the money roll in, in reality there can be a myriad of issues and challenges that can eat away at your profit, steal your time, or even
cause you to lose sleep over regulations and your responsibilities for the health and safety of your tenants. While you may be engaged, in-the-know and capable yourself, what happens if you are unable to manage your decisions and responsibilities due to an accident,
illness or disability that impacts upon your mental capacity?
Who in your closest circles is best placed and able to step in and manage your property and financial affairs on your behalf? A Lasting Power of Attorney is a vitally important document for any property investor as part of a robust succession plan, designed to protect and provide for the individual and their family. If you have not put a Lasting Power of Attorney in place, and given specific though to your property interests, speak with Mayfair Estate Planning Ltd. today and arrange a free, confidential review to understand your options.
Property has always been popular in Britain, and can be seen as a secure long-term investment. Since the economic challenges of 2008, many people turned to property as a form of investment becoming increasingly disillusioned with the volatility of the stock
market. There are many strategies and approaches to property investment and many people are attracted to the tangible nature of
the investment and the ability to become involved, hands-on and manage the investment themselves. Some even take this to the extent of becoming full-time landlords.
So what happens when the investor is not longer able to manage the investment? Over time we may become attached to our assets, and with the realisation that a third party is unlikely to care about our asset as much as we will comes a reluctance to bring others in and give them responsibility. However, in the instance that we are unable to make our own financial and property decisions we may need someone to step in and manage things on our behalf.
Professionals may lack that personal connection and trust, while your husband, wife or partner may not have the necessary skill and experience to really know what they are dealing with and take control of things in an effective way. Is there anyone in your circumstances who is in the position, or is building their property interests and may need to give some thought to their long-term plan?
In the circumstances that an individual loses mental capacity, through accident, illness or disability, and they lose the ability to make their own financial and property decisions, your family and friends are not automatically allowed to step in and help. In fact, in this moment they would lose the ability to help and would lose access to your finances and assets, while the Court of Protection appoints a suitable Deputy, who may be a firm of solicitors you have had no prior involvement with.
To avoid this, and enable people of your choosing to step in and help make decisions on your behalf, it is necessary to make a Lasting Power of Attorney and appoint appropriate people. This is one of the most important documents you will ever make and gives someone the authority to access your finances and make decisions on your behalf, therefore professional advice is strongly recommended.
Where your estate is substantial, complex or requires specialist attention, such as those with property interests, it may be sensible to appoint Attorneys to carry out specific duties on your behalf. For more information on Lasting Powers of Attorney, please get in touch today to arrange a free, confidential review of your circumstances.
• Have you got a Lasting Power of Attorney?
• Are your circumstances substantial, complex or specialist?
• Have you given specific thought to your property interests and who is best placed to make the right decisions?
What we do…!
• We will discuss your circumstances with you and help you to understand how the document works and the process involved in putting it in place.
• We will meet your Attorneys to ensure they understand the role you are asking them to commit to.
• We charge fixed fees for Wills, offer clarity and transparency, and will walk you through each step to make sure you have a robust LPA, appropriate for your circumstances.
About the Author
Managing Director of Mayfair Estate Planning
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