There is often confusion between Powers of Attorney and Wills. Simply put, a Power of Attorney is actioned whilst living and a Will once deceased.
The difference between Powers of Attorney and Wills is clear-cut: one is for the present, the other for the future. These legal documents can save you from unnecessary hassle, court battles, and emotional distress. To ensure absolute peace of mind, it’s essential to have both in place.
Many assume they can make decisions for a spouse/loved one in times of need without proper documentation. However, this is a common misconception and more often you will find a lengthy court process will take place.
A Power of Attorney appoints someone to act on your behalf when you’re unable to manage your affairs. You can choose anyone you trust – partner, family member, friend – to handle your financial matters through a Continuing Power of Attorney (CPA). Alternatively, a Welfare Power of Attorney (WPA) grants authority over your health and personal welfare decisions.
With your permission, this gives the attorney the power to help you make decisions or make decisions on your behalf regarding your financial and property affairs. This particular power can be utilised while you still have capacity i.e. living/working abroad, housebound, hospitalised after an accident etc
It allows the person(s) chosen to deal with things like bank accounts, paying bills, tax returns, insurances, investments, collecting benefits or a pension, gifting, property-related issues (down to buying property) and many more.
Unlike a continuing Power of Attorney, these powers only take effect if you cannot make decisions about your welfare yourself…however, you must appoint your WPA while you have the capacity and understanding. These powers allow authority over decisions around both your health and personal welfare, for example, what medical treatment you should or shouldn’t receive, where you are cared for or live, down to what you eat and how you should be dressed.
If it is too late and the person does not understand what they are doing a Guardianship or Intervention Order may be required, which would involve raising court proceedings.
Powers of Attorney aren’t just for the elderly, they are a document we advise our clients to have yet hope they never need to use. Almost like an insurance policy!
In our option it’s never too early to put one in place as we have seen so often the negative consequences when there isn’t one and it has been too late.
Download POA Information Sheet