We recommend that everyone has a power of attorney, regardless of age, wealth or circumstances. But what is a power of attorney and what are the advantages of a power of attorney?
1. It protects your finances and your wellbeing
A power of attorney allows you to choose someone else to act on your behalf in the event that you lose capacity and are unable to regulate yourself or your affairs. A power of attorney allows your selected attorney or lawyers to take care of your finances (e.g., access your bank accounts) and make decisions about your care and well-being (e.g. what type of hospital treatment you will receive). It can only be set up if you have the capacity. By and large, this means that (1) you will be able to direct an attorney to prepare a power of attorney for you; (2) You understand what the document will do and to what extent you are delegating authority to someone else. and (3) you can remember what your instructions are and what the document does.
2. You control who your lawyers are and what they can do
A power of attorney allows you to choose people you trust to run your affairs and make decisions on your behalf. Your attorneys must adhere to the Office of the Public Guardian’s (OPG) Code of Conduct. The power of attorney can be challenged if your lawyer acts against your interests.
With a power of attorney, you can also decide what powers your lawyer will have. For example, if the power of attorney does not include a gift certificate, your attorney cannot give gifts on your behalf.
3. It’s inexpensive and quick to set up
If you lose capacity and do not have a power of attorney, someone must apply to the Sheriff Court to set up a guardianship. A power of attorney is quick and easy to set up. If a guardianship arrangement is needed, it can take approximately 6-9 months for a guardian to be appointed. This can create significant costs, delays, and uncertainties for your family.
4. It comes into force as soon as it is required
Once the document has been signed and registered with the OPG, it can be used by your lawyers. Once registered, and with your consent, your attorneys can make decisions about your finances as long as you have the capacity. This can be useful if, for example, you are abroad and need help with your affairs or need help with recovery from a physical illness.
Your attorneys can only make decisions about your welfare if you lose capacity.
5. It gives you and your family peace of mind
Neither of us can predict what is around the corner. A power of attorney gives you the peace of mind that if something happens to you, it will be much easier for your family to look after you and your business.
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