Hi, My name is Brooke and in this video I’m going to talk about acting with power of attorney and how that affects insuring an unoccupied property.
Taking over the management of property and assets from a family member usually happens in two different ways depending on the circumstance. They are with the power of attorney or as an executive trustee.
The Power of Attorney is authority given to make decisions regarding someone’s money or assets while they are still living.
It is usually given when the owner may no longer be capable of making decisions for themselves or [if they] no longer wish to.
Lasting power of attorney can be granted with an LPA form which can be downloaded online. Some people wish to gain legal advice when granting power of attorney but it is not necessary for the document to be legal. Power of Attorney ends if the donor cancels the agreement or if they pass away.
Executive trustees - also known as executers - are left responsible when the owner has already passed.
In this case, you may be managing assets on the donor’s behalf during the sale or break up of assets or [if you are] holding them for children or young benefactors [until they] become of age.
A trustee is usually named and have their tasks detailed in the donor’s final will.
As an attorney or executor, you may need to source unoccupied property insurance during the time before a sale or whilst the owner is in care. Often standard home insurance policies won’t be able to continue cover if the property is unoccupied or alternatively they will restrict the cover whilst there is no one living there.
One of our advisors would be happy to discuss your requirements or alternatively visit our unoccupied property insurance page.
Alison Wild BCom (Hons), MAAT, MATT, Taxation Technician is a highly respected industry professional who has been working with and advising SMEs in areas including tax, pensions, insurance and marketing for over 25 years. She is a member of the Association of Accounting Technicians (AAT) and Association of Tax Technicians (ATT) and also has over 20 years' experience as a residential landlord.
Date: August 28, 2015
Category: Home and Property