What is Power of Attorney?
Power of Attorney is a legal document that lets you choose who can take care of you and your finances if you become mentally or physically incapacitated. You might also grant Power of Attorney to manage your finances and property if you’re abroad for extended periods.
There are two types of Power of Attorney:
- Ordinary Power of Attorney is temporary, meaning you specify how long it will last, and it focuses on managing your finances.
- Lasting Power of Attorney gives your attorney the right to manage your affairs until you revoke that right or pass away. There are two kinds of Lasting Power of Attorney: health and welfare, and property and financial affairs.
Just like writing a will, you can appoint a Power of Attorney so long as you’re over 18 and of sound mind. As with wills, it is part of preparing for the future. A Power of Attorney document must legally be in place before you need it.
If you have an accident or otherwise find yourself unable to manage your health and finances, your loved ones cannot apply for one after the fact.
You can find out more in our guides, What is Power of Attorney? and Your guide to getting Power of Attorney for a couple.
Is Power of Attorney included in my will?
A lot of people think that writing a will includes a Power of Attorney. It doesn’t. It is a separate legal document. You might bequeath your savings to your spouse or civil partner, but that does not mean they will be able to access that money beforehand.
If you’re writing a will with a solicitor, it is a good opportunity to discuss drawing up a Power of Attorney at the same time. Appointing an attorney you trust to manage your affairs is a useful way of helping to ensure what is in your will is protected and available to your loved ones.
A Power of Attorney can help prevent your money from being lost to unpaid fees and charges if you are unable to manage things yourself. They can pay bills, buy essentials on your behalf, and access money for you if you become house-bound.
Some people are happy drawing up a will but avoid thinking about Power of Attorney. A will gives security to our family after we pass away, and we are prepared for that.
What we do not like to consider are the months and years beforehand, when we might find ourselves frail, unwell or unable to cope alone. Yet that is when a Power of Attorney document is most important.
Think of a Power of Attorney document as a safety net.
When should I make a Power of Attorney?
There is no right or wrong time to get a Power of Attorney. So long as you are 18 or over and mentally capable, it is usually best to put one in place sooner rather than later.
Many people think it is a document for older people, but if 2020 taught us anything, it is that life can be unpredictable. Anyone, at any age, could have an accident or be diagnosed with a debilitating illness.
It is also a useful document for those in the military or younger people who travel extensively, since it lets someone take care of their affairs while they are away.
Others believe their partner automatically gains Power of Attorney if something happens to them. In fact, without a Lasting Power of Attorney, your spouse or civil partner is not legally allowed to manage your health and finances when you are unable to do so.
When looking after your welfare, your attorney may be able to help with your daily routines, support decisions about moving into care if necessary, and help determine the type of medical care you receive.
Should something happen to you and you have not made a Power of Attorney, your case may go to the Court of Protection, which can:
- Determine whether you are mentally or physically able to manage your own affairs
- Make decisions relating to your health and financial care
- Appoint someone to the role of deputy, which is similar to an attorney
In other words, you may have no control over who looks after your finances or healthcare while you are incapacitated.
If you are already using the services of a legal expert, ask them about making a Power of Attorney at the same time.
If you are not yet in touch with a solicitor, try The Law Superstore. Using our quick quote form, you can compare legal professionals who can guide you through the process, help you find the right Power of Attorney option for your circumstances, and complete the correct forms on your behalf.
