Powers of Attorney – How prepared are you if you need help?

Powers of Attorney

How prepared are you if you need help?

Applications for Powers of Attorney have been steadily increasing year on year, with the current annual application figures approaching a million a year.

There are two types, a Financial Power of Attorney, and a Health & Welfare Power of Attorney. At the heart of both types is the ability for a person to be able to appoint the people they love and trust the most to act on their behalf as Attorneys, as a way of planning ahead to ensure that they will receive the help they need in the future, if necessary.  

In many ways they are like insurance policies – you take them out and are provided peace of mind that matters can be dealt with should the unexpected happen but ultimately hope never to use them.

Importantly, you are providing peace of mind for your loved ones because appointing them as Attorney whilst you are fit and well prevents them from a lengthy and expensive Court process should assistance be necessary in the future because once a person has lost capacity it is not possible for them to enter into a Power of Attorney, it must be done whilst you have capacity.

The Financial Power of Attorney is flexible enough for you to be able to confirm to your Attorney’s what aspects of your finances you do need assistance with whilst continuing to manage the aspects you are happy to. Many people are pleasantly surprised at the independence they maintain with a Power of Attorney in place. It is your Power of Attorney and if fit and well – it is your decision how much or little help you receive.

A Health & Welfare Power of Attorney is different in that it can only be used by your Attorneys if you lose capacity. This type covers End of Life Decisions as well as the ability to manage everyday medical and personal care decisions. 

Financial Powers of Attorney used to be known as Enduring Powers of Attorney before the Law changed in 2007. A validly executed Enduring Power of Attorney will still operate but since 2007 it has become possible to enter into a Power of Attorney to cover your health matters as well. If you have one of the older types, it is worth considering taking out a new style Health Power of Attorney to work alongside your Enduring Power of Attorney.  

Powers of Attorney are not only for personal use. They are also a brilliant tool for owners and key decision makers within businesses to appoint the very best people with the right skills and experience to help run the business if you become incapacitated. This can be key for all involved because if the main stakeholder is incapacitated on a long-term basis, important  decisions will need to be made about the future of the business and in a worst case scenario the timing of any potential company sale and valuation.

If you would like to discuss any of the matters within this article further, our Private Client Solicitors are based at both our Colchester (01206 577676) and Dunmow Offices (01371 873 277) or [email protected]