What is a lasting power of attorney?
A lasting power of attorney is a document in which you appoint people, of your own choosing, to assist you in managing your affairs.
What are the types of power of attorney?
There are two types of lasting power of attorney. There is one that covers your financial affairs. This enables your attorneys to assist you with all your financial matters, including paying your bills, applying for benefits, dealing with pensions, managing investments and buying and selling property. The financial power of attorney works when you want it to work. This can be both whilst you have capacity or should you lose capacity.
The second power of attorney covers your health and welfare. This document only comes into effect if you have lost capacity. Whilst you have capacity, you make all your own decisions as to your day-to-day living and what medical treatments you receive. If you lose capacity, your nominated attorney becomes your voice. This document enables your attorneys to make decisions such as where you live, who is allowed to visit you, how you dress and what you eat. It also covers your medical care and end of life treatment.
Which one is more important?
They are both important. Historically, a lot of people have only entered into the financial powers of attorney, relying on their next of kin to be able to make healthcare decisions for them. However, this is generally no longer acceptable. The caring profession needs to know who to accept instructions from.
What is an enduring power of attorney?
An enduring power of attorney was the power of attorney documentation we had prior to October 1st 2007. Lasting powers of attorney were then introduced. However, an enduring power of attorney is still valid.
How does it work?
Once a financial lasting power of attorney is registered at the Office of the Public Guardian, it is ready to be used. In reality, most of them are locked away until they are needed. Once required, either the original or a certified copy needs to be registered with the banks and any other financial institutions with whom you hold assets. The banks will then ask your attorneys to complete paperwork to prove their identities and ask what facilities they need on the account – for example, telephone banking or internet banking. They will then set this up for you.
Can I change a power of attorney?
A power of attorney is a legal document and it cannot be changed once completed. For example, you cannot just add another attorney to it. Nor can you update a name or address. If an attorney marries or moves house, they can provide documentation to show they are one and the same person. You can, however, remove an attorney.
Revocation
If you wish to remove one attorney then you enter into a Partial Deed of Revocation, revoking the power given to that person. This deed is then lodged with the Office of the Public Guardian with the original power of attorney document. It is then stamped to show that this person can no longer act. The power of attorney document is returned to you so that your other attorneys can continue to act for you. If you want to revoke the whole document, you can do so.
Can I add another attorney?
The original document cannot be changed. However, you can enter into another power of attorney document. For example, you may have three children and only appointed two in the original document because the third was living overseas and it wasn’t practical to appoint them at the time. If that child then returns to the UK and you decide you want them to be able to also act for you, you can create a second document appointing that child as an attorney. You will then have three attorneys who can act for you, and they will have equal authority. One power of attorney document does not take priority over the other.
Does it continue after death?
No. The power you grant to your attorneys dies with you. The executors you have appointed in your Will then take over.
Can an attorney change a Will?
An application has to be made to the Court to change a persons Will.
“I’m not old enough to worry about this JUST yet.”
A power of attorney has nothing to do with age. No one knows what is around the corner. You could suffer a medical incident or an accident at any age, at which point, you then may need assistance. It could just be for the short term until you make a full recovery or it could be for the rest of your lifetime. To use the old saying “don’t put off until tomorrow what you can do today”.
