There are several reasons why you might want to consider getting a power of attorney in place if you are taking out a lifetime mortgage:

Incapacity: A power of attorney can be used if you become incapacitated and are no longer able to make decisions for yourself. This can be the result of suffering from a stroke or heart attack or if you have developed a debilitating condition such as Alzheimer’s disease. This can include making financial decisions or medical decisions. In Scotland this is called a ‘Combined’ power of Attorney. With regards to equity release or lifetime mortgages this could mean, if a valid and active Power of Attorney is not in place, that you or your partner cannot access future funds if you have a draw-down facility on your lifetime mortgage.

Convenience: If you are unavailable or unable to handle certain tasks, such as signing a document or making a payment, your designated agent with the power of attorney can take care of those tasks for you.

Peace of mind: Having a power of attorney in place can provide peace of mind, knowing that there is someone you trust who can step in and make decisions on your behalf when necessary.

Avoiding court intervention: If you do not have a power of attorney and become incapacitated, your family may need to go to court to get a guardianship or conservatorship established to make decisions for you. This can be a costly and time-consuming process, and it may not result in the outcome you would have wanted.

Overall, a Power of Attorney can be a valuable tool for ensuring that your wishes are respected and that important decisions are made on your behalf if you are unable to make them yourself. It is important to take professional advice to ensure that the power of attorney is drafted properly to meet your specific needs. It has to be witnessed and certified correctly and lodged at the Office of the Public Guardian which for Scotland is in Falkirk.