Caring for someone else’s assets is a huge responsibility, so it’s important to gather as much information as possible
Nobody wants to think about the circumstances of their own death, or the loss of a loved one. But being prepared now can save you and your loved ones both headaches and hardships down the line. That’s why it’s important to get familiar with will writing, especially when it comes to power of attorney.
What does ‘power of attorney’ mean?
A power of attorney, or poa, is a legal authorization that allows someone to make decisions for you, or act on your behalf, if you’re no longer able to make your own decisions or if you no longer want to.
There are a number of reasons why power of attorney may be necessary, and it is something many people should get familiar with if they have old, ill or cognitively compromised relatives. In some cases, power of attorney is a temporary measurement – for example, you may need support if you’re in hospital and need help managing everyday tasks such as bills.
Similarly, if you are planning on going travelling, it is possible to assign power of attorney in order to keep your personal affairs with banks and utility bills managed in your absence. Another application of this might also be for business owners who want to know that business as usual can be maintained, should something happen to them.
In other circumstances, longer term power of attorney may be necessary. This is often the case if a family member is diagnosed with dementia, and is likely to lose their mental capacity to make their own decisions.
Understanding mental capacity
Mental capacity involves being able to make or communicate specific decisions when they need to be made. To display mental capacity, the party must be able to understand the decision being made, why it needs to be made, and what the likely outcome will be.
For some people, they’ll be able to make some decisions (like what to have for dinner) but not others (like arranging home insurance). In other cases, the ability to make decisions could change day to day.
The different kinds of power of attorney
There are three main categories when it comes to power of attorney. These include:
Ordinary power of attorney: Covers decisions about financial affairs, and is valid even when mental capacity is present. This is suitable cover for a temporary period (such a hospital stay), or if you simply want someone to act for you.
Lasting power of attorney: Covers decisions about financial affairs as well as health and care. This comes into effect when mental capacity is lost, or if the subject no longer wants to make their own decisions.
Enduring power of attorney: EPAs were replaced by LPAs in October 2007, but any EPA signed prior to this time are still valid. This covers decisions about property and financial affairs, and comes into effect when mental capacity is lost or when the subject wants someone to act on their behalf.
With power of attorney on the table, will writing becomes even more important
Power of attorney can be a delicate and complex subject, which is why a water-tight will is essential. This allows wishes to be followed no matter what the future holds, and gives everyone a clear understanding of their role in the process of settling affairs.
Head of Wills, Probate and Trusts at Winn Solicitors, Rebecca Harbron Gray states:
“Many people avoid writing a will and making plans for death for many years because they think it is a morbid or depressing process. But the truth is often that, once complete, people get a sense of comfort and relief from knowing that they have done all they can to protect and care for their nearest and dearest.
“At Winn Solicitors our team has decades of experience in this specialist field of law and we know how to make it simple and stress-free – no matter how complex your estate or family situation.”
With a dedicated team of legal specialists in settling affairs, Winn Solicitors can help you create a will that offers complete peace of mind and security, covering all the necessary bases.
If you’re looking for expert solicitors dealing with wills, get in touch with Winn Solicitors today on 0800 988 6288.
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