How to Establish Power of Attorney?

 

In life, unforeseen circumstances can arise, making it crucial to have a plan for your financial and healthcare decisions. A Power of Attorney allows you to designate someone to make decisions on your behalf, ensuring your wishes are honoured when you are incapacitated. Let’s explore key steps on how to establish Power of Attorney, empowering you to take control of your future.

Understand the Basics of Power of Attorney:

In the UK, there are three different types of POAs.

Lasting Power of Attorney (LPA):

This type is permanent and covers health and financial decisions. You can set up an LPA while you still can make decisions for yourself. It becomes effective if you lose mental capacity in the future. For example, if you’ve been diagnosed with dementia, an LPA allows someone you trust to make decisions on your behalf regarding your health and finances.

Enduring Power of Attorney (EPA):

EPAs were valid before October 2007, but creating new ones is no longer an option. If you made an EPA before that date, it remains valid. EPAs specifically cover financial affairs and are only relevant while you still have mental capacity.

Ordinary Power of Attorney:

Unlike LPAs and EPAs, ordinary power of attorney is temporary. It allows one or more individuals (your attorneys) to make financial decisions on your behalf. However, it’s only valid when you have the mental capacity to make your own decisions. For instance, you might set up an ordinary power of attorney if you’re going into hospital and need assistance with everyday financial tasks like bill payments.

Remember that choosing the right type of power of attorney depends on your specific circumstances and needs. Seek legal advice to ensure you make informed decisions.

Choose the Right Agent:

Electing the right person to act as your agent is a critical decision. This individual should be someone you trust implicitly, as they will make important decisions on your behalf. Discuss your wishes with the chosen agent beforehand to ensure they understand and are willing to accept the responsibility.

Drafting the Power of Attorney Document:

Creating the actual Power of Attorney document is a formal legal process. You can obtain the necessary forms from legal document services or consult with a solicitor to draft a document. Include specific details such as the powers granted, limitations, and any conditions under which the document becomes effective.

Witnesses & Registration:

Most jurisdictions require Power of Attorney documents of authentication and witness to ensure validity. This can be completed via the GOV website.

Get your document legalised: Overview – GOV.UK (www.gov.uk)

Keep the Document Safe:

Store the document in a safe but easily accessible place. Inform your agent of its location and provide copies to relevant individuals, such as GP surgery, Local Hospitals, Care homes and financial institutions. Keeping the document safe ensures that it can be promptly accessed when needed.

Regular Review and Updates:

Life circumstances change, so review and, if necessary, update your Power of Attorney periodically. Changes in relationships, financial status, or health conditions may necessitate adjustments to the document to ensure it accurately reflects your current wishes.

 

Establishing a Power of Attorney is a proactive and empowering step towards securing your future. By carefully selecting a trustworthy agent, creating a comprehensive document, and adhering to legal requirements, you can ensure your wishes are cared for during challenging times.