What is it?
A Power of Attorney is a legal document that enables a chosen attorney to look after your affairs or make decisions on your behalf if you are incapacitated. They can only be used in the specific circumstances specified in the document.
What does it do?
It gives a person (Attorney) the power to act on behalf of another person (Donor in England and Wales; Granter in Scotland).
The document provides the Attorney with the power to conduct limited acts and depends on the type of Power of Attorney.
All decisions must be made in the best interests of the Donor/Granter. Choosing the right attorney is therefore imperative.
"Who do you want to look after your affairs or make decisions on your behalf if you become incapacitated in the future"?
Currently only 6% of the population have a Power of Attorney.
Different types
In England and Wales, it is called Lasting Power of Attorney (LPA). There are two types: Property and Financial Affairs, and Health and Welfare.
The Property & Financial LPA allows the Attorney(s) to look after the Donor’s property and financial affairs, which includes operating bank accounts, buying, selling or leasing a property and paying bills or investing.
The Health & welfare LPA enables the Attorney(s) to make decisions about health and welfare matters after the Donor loses capacity. These powers include deciding where they will live and on personal issues, such as medical treatment and personal care.
Power of Attorney Scotland
In Scotland, there are three types of Power of Attorney:
The Continuing Power of Attorney (CPA): The Granter appoints an Attorney(s) to look after their Property and Financial affairs.
The Welfare Power of Attorney (WPA): This Power of Attorney enables the Attorney(s) to make decisions about health and welfare matters after the Granter loses capacity.
The Combined Power of Attorney, which is a combination of a CPA and WPA.
Why It matters
If you lose capacity with no Power of Attorney in place, the Court of Protection will look to appoint a Deputy. This can take between six and twelve months and is also extremely costly. During this time you will have no one looking after your financial affairs or wellbeing; joint accounts will be frozen in many cases and access to funds could be limited.
Moreover, the Judge has the power to decide who to appoint, and this could be someone who you would never have trusted or wanted to manage your affairs.
A Power of Attorney enables you to appoint someone who YOU want to make decisions about your welfare, money or property on your behalf, now or in the future.
Dementia and strokes are often associated with older people but in reality, an accident or illness can happen to anyone. Make sure the decision of what happens to YOU and YOUR affairs stays in YOUR hands. If you want to ensure your wishes are carried out, please contact us.