Money Matters

POWER

of Attorney

There may come a time in everyone’s life when they have to consider handing control of their affairs over to a trusted ally, so Peter d’Aguilar has been investigating the role and purpose of appointing a Power of Attorney

No one really likes the idea of handing over control of their life to someone else. Nevertheless, if this should become a necessity, it can be reassuring to know that a person you trust has the authority to assist you in managing your affairs. Power of Attorney is a legal document that lets you appoint one or more people to help you make decisions, or to make decisions on your behalf. This gives you more control over what happens to you if you have an accident or an illness that prevents you from making your own choices.

There are a number of reasons why this might become necessary. It could result from a temporary situation – for example, needing help with everyday tasks such as paying bills while indisposed. Longer-term plans may be necessary, for instance after a diagnosis of dementia that could damage your mental capacity

Power of attorney comes in three different forms

for making future decisions. Mental capacity can fluctuate from day to day and affect different aspects of life – from undertaking everyday tasks to making major financial choices. Dementia may not necessarily prevent a person from evaluating different options. However, if the ability to make or communicate decisions happens before setting up a power of attorney, the Court of Protection could become involved.

Power of attorney comes in three different forms. Ordinary Power of Attorney covers decisions about financial affairs and is only valid while you have mental capacity. It is appropriate if you need cover for a temporary period – for instance during a hospital stay or while on holiday, if it is difficult to visit the bank or post office or if you need to give someone access to your account. You can limit the authority you give your attorney, specifying which assets they can control – for example, your bank account but not your home. To set up an Ordinary Power of Attorney you should consult a solicitor or your local branch of Citizen’s Advice, as there is a standard form of wording that must be used.

Lasting Power of Attorney (LPA) comes in two forms – decisions about property and financial affairs, and decisions about health and welfare. A Lasting Power of Attorney comes into effect if you lose mental capacity, or

if you no longer want to make these decisions for yourself. Lasting Power of Attorney was introduced in 2007 to replace Enduring Power of Attorney (EPA). However, an Enduring Power of Attorney set up before that date should still be valid. If you’re married, or in a civil partnership, without a Lasting Power of Attorney your spouse will not automatically have the authority to deal with your bank account and pensions and to make decisions about your healthcare – should you lose the ability to do so.

You may find yourself with responsibility for some very important financial and welfare decisions

The relevant forms and information pack for establishing a Lasting Power of Attorney are available from the Office of the Public Guardian. Alternatively, they can be downloaded or filled out online – either by you, or with the help of a solicitor or local advice agency. If unsure of the process or dealing with complex affairs, taking professional advice can prevent problems later on. A Lasting Power of Attorney must be signed by a certificate provider – someone you know well or a professional such as a doctor, solicitor or social worker who can confirm that you fully understand its implications and haven’t been coerced into signing. The Lasting Power of Attorney should then be registered, for a small fee, with the Office of the Public Guardian. If you’re unhappy with decisions taken by your attorney, the Office of the Public Guardian is there to investigate your concerns.

If, on the other hand, you are asked to become someone’s attorney, you may find yourself with responsibility for some very important financial and welfare decisions – so it is important to be aware of everything this might entail. l Citizens Advice, Gov.UK, NHS, and Age UK all offer useful information online.

Why is a will important?

Making a will means you can be sure that your property will be properly taken care of when you die. The executors and trustees will be chosen by you.

If you don’t prepare a will – if you leave it to chance – this may result in unsuitable people dealing with your estate after your death. Do you want to make sure your children and dependants are provided for – or to appoint legal guardians for your children? What about if you are an unmarried couple? We are able advise you so that you are able to make provision for your partner on your death. Do you want advice on inheritance tax or making a gift to charity? Again, we can help. You may want to set up a trust in your will (e.g for a disabled beneficiary). We are able to advise on all aspects of trusts and setting up a trust in your will.

Don’t leave it to chance. Speak to a professional while you can.

If you would like further information, please do not hesitate to contact Aileen Francis at Percy Walker. Aileen is a solicitor and specialist in this area of law and a full member of the Society of Trust and Estate Practitioners.

Percy Walker & Co LLP

Robertson Chambers, The Memorial, Hastings TN34 1JB T: 01424 721234 F: 01424 721376 enquiries@percywalker.co.uk www.percywalker.co.uk

• Wills & trusts • Probate & estates • Power of attorney • Conveyancing • Court of protection

This firm is authorised and regulated by The Solicitors Regulation Authority (SRA Number 662900).

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