Powers of Attorney

Have you ever considered how your financial and personal arrangements would be managed if you were unable to deal with them yourself? Simple things such as writing cheques and paying bills can become a very real problem as we get older, especially if we develop an illness such as Alzheimer's disease.

With Alzheimer's disease we run the very real risk of becoming mentally incapable of dealing with our own affairs and must one day become totally dependent on others to perform this function. It could be as simple as paying the bills, or as significant as selling a house to pay nursing home fees.

Once you are mentally incapable of managing your own affairs, a ‘Receiver', usually a close relative, can be appointed by the court but this is expensive and time consuming and the court still has to authorise all major decisions and then charges an annual fee based on the patient's income.

A more practical alternative before that happens is to make a Power Of Attorney. In principle it is similar to an ordinary Power of Attorney which many people use when they need someone to sign a document in their absence. The difference is that an ordinary Power of Attorney is automatically revoked as soon as the person giving the Power becomes mentally incapable.

A Power of Attorney can therefore enable people to decide in advance whom they would like to deal with their affairs for them after they become mentally incapable. It can be phrased to ensure it only comes into effect after you can no longer take responsibility yourself.

Although the idea of a Power of Attorney is simple, making plans like this when you are still fit and well can be upsetting but waiting until it is too late can cause much more distress and cost a great deal of money.

A Lasting Power of Attorney covers personal health and welfare, but with the need for a separate one for financial affairs.

It needs to be certified by a designated person, such as a Doctor or Lawyer, who has known you for at least two years, for which a fee will be required and will have to be registered with the Office of the Public Guardian; this will also involve a fee.

Please do not hesitate to contact Mark Burn or Claire Waterhouse in complete confidence if you wish to discuss any matters relating to this area.