What is a Power of Attorney and why do I need one?

Understanding Powers of Attorney - Do You Need One and How to Obtain It?

A Power of Attorney is a legal document that designates a trusted individual to act as your attorney and make decisions on your behalf during your lifetime. Your appointed attorney can act either when you grant them permission or when you become incapacitated and are unable to make decisions for yourself. Most people will choose their partner, sibling or adult child to be their attorney.  However, you can choose anyone that you feel you can trust and will always act in your best interests.

Importance of Having a Power of Attorney

It's essential to consider a Power of Attorney well before you think you may need it. Waiting until it becomes necessary might be too late. Just like getting house insurance before a disaster strikes, having a Power of Attorney in place while you are healthy and of sound mind ensures your wishes are properly documented and avoids potential complications.

Scope of a Power of Attorney - What Can Your Attorney Do?

A Power of Attorney covers two main areas - financial and administrative matters, and personal welfare matters. Financial matters include handling your bank accounts, paying bills, managing savings, investments, property, taxes, benefits, pensions, and making purchases or payments related to your care.

On the other hand, personal welfare matters involve decisions about medical treatment and care arrangements, and day-to-day personal aspects like participating in social activities, religious practices, diet, appearance, etc. It's important to note that personal welfare matters can only be managed by your attorney if you lose capacity, while financial matters can be handled if you grant them permission or lose capacity.

Remember, having a Power of Attorney in place is a proactive step to safeguard your interests and ensure your wishes are respected, especially during challenging times. 

What happens if I don't have a Power of Attorney?

Should you find that you can no longer manage your affairs and you don't have a Power of Attorney in place it can result in applying to the court for a guardianship order.  Unfortunately, this can be time-consuming, stressful and very costly. It is much better to spend a smaller amount when you are healthy to appoint someone you trust.

How to do you get a Power of Attorney?

The easiest way to sort out and appoint a Power of Attorney is to contact your local private client solicitor. They will be able to give expert advice and carry out all the administrative work to appoint your Power of Attorney. They will also be able to help you write a Will if you don't have one in place.