Powers of Attorney
We are seeing an increase in enquiries on Powers of Attorney and this month’s blog by our Head of Private Client, Scott Dallas gives some helpful information about Powers of Attorney and why they are important.
What is a Power of Attorney?
A Power of Attorney is a document which gives someone else authority to make decisions on your behalf. It ensures that your financial affairs and personal welfare can be dealt with and protected if you are unable to make decisions for yourself at any time. A Power of Attorney details the names of the people that you wish to appoint as your attorneys and lists the individual powers you want them to have. You can appoint more than one attorney to act for you at the same time and it is recommended to give some thought to having a substitute attorney named, to step in if your first choice is unable to act as your attorney for any reason.
Types of Powers of Attorney
A Power of Attorney typically covers both ‘Continuing’ and ‘Welfare” powers. Continuing powers deal with financial, property and practical matters, such as paying your bills and accessing your bank accounts. Welfare powers cover more personal decisions, such as your care, accommodation and medical treatment.
Welfare powers will only transfer to your Attorney if your GP has certified that you have lost capacity, whilst the Continuing powers can often be used by your Attorney if you wish, even where you retain capacity i.e. if you are physically unable to deal with something on your own. Different Attorneys can be appointed for each type of power if you would prefer.
Why should I have a Power of Attorney in place?
Having a Power of Attorney in place provides you with certainty and peace of mind. Unfortunately, life can be uncertain, and having a Power of Attorney in place ensures that you have peace of mind that someone that you trust can manage your affairs.
People often consider that Powers of Attorney are only for the elderly, however, this is simply not the case. Life can be unpredictable, and accidents and illnesses can happen to anyone at any time. This is why it is important for people of all ages, regardless of your circumstances to put a Power of Attorney in place.
What happens if there is not a Power of Attorney in place?
There is a common misconception amongst people that family members or their next-of-kin will be able to automatically step in and help if they can no longer make decisions on their own. However, simply being a spouse, partner or relative does not give someone the automatic right to make decisions on your behalf. This is why it is so important to ensure you have a Power of Attorney in place.
If you lose capacity to make decisions for yourself and have not appointed an Attorney, your friends or family may have to go to court to apply for a Guardianship Order to obtain authority to act on your behalf. This process can be timely and expensive. The person appointed by the court may not be the person you would have chosen, and they may not know what your wishes would have been.
We often find that planning ahead brings about a sense of relief and peace of mind for our clients and also their loved ones.
What to do next?
We offer a fixed fee service for the preparation of Powers of Attorney – should you wish to obtain further advice or arrange an appointment to discuss further, please do get in touch with me and I would be happy to assist.
scott.dallas@macandmac.co.uk