If you are worried about losing the ability to make your own decisions following an accident or a diagnosis of an illness such as Alzheimer’s, you can appoint an individual to hold your Power of Attorney and make important decisions on your behalf.
Power of Attorney helps you stay in control of your life, no matter what the future holds.
Generally speaking, Power of Attorney is used for two main concerns:
- Power of Attorney for financial issues
- Power of Attorney for health and welfare issues
The person given Power of Attorney must adhere to a number of strict rules as part of taking on this responsibility, such as keeping thorough financial records and following any limitations you place on their decision-making powers.
Recommended: The difference between financial and health Power of Attorney
What is Financial Power of Attorney?
Financial Power of Attorney usually involves handing over control of personal finances, such as managing bank or building society accounts.
If you have been granted this type of Power of Attorney, you may also be expected to collect income such as a pension or benefits on behalf of the donor. This usually includes day-to-day tasks such as paying bills, but it can also involve more complex matters such as selling a property.
What is Medical Power of Attorney?
As a protective safeguard, medical or health and welfare Power of Attorney can only be used once the donor is deemed to have lost the mental capacity to make their own decisions.
Typically, this means that the appointee will be able to choose where the donor should live, how they should be cared for, and what kind of social activities they attend. It may also be necessary to make decisions regarding medical care if hospitalisation is required.
What is limited or ordinary Power of Attorney?
It is also possible to set up an ordinary Power of Attorney, which only lasts for a limited period of time. Since ordinary Power of Attorney is automatically voided if the donor is no longer able to make decisions, and you do not wish to seek Court of Protection Deputyship, it is best used for temporary situations such as holidays or if the donor is unable to leave the house but is still mentally capable.
Ordinary Power of Attorney can be reversed at any time and can even be applied to specific tasks only.
Recommended: What’s the difference between Power of Attorney and Court of Protection Deputyship?
How to set up Lasting Power of Attorney
Granting somebody Power of Attorney over either your financial affairs or health and welfare is a simple process. A solicitor can register the Power of Attorney with the Office of the Public Guardian (OPG). However, proof is required that the individual handing over Power of Attorney has the mental capacity to do so and is not being coerced in any way.
What happens if there’s no Power of Attorney?
If a person loses the mental capacity to make their own decisions, either through illness or accident, it is possible for a third party to apply for Court of Protection Deputyship. They will need to contact the Court of Protection, which will then review the case and make a decision. This can often be handled by post and does not necessarily require a hearing.