A Power of Attorney is a way of giving someone else permission to make decisions about your money and property, as well as your health and personal welfare, if you are not able to make those decisions yourself. It usually sets out what you would want to happen in the future if you could no longer look after your own affairs.
A Power of Attorney is vital for anyone – regardless of age. A health emergency, such as an accident or stroke, could happen to anyone, and could mean that you could not make decisions for yourself in the short or long term.
There are two different types of Power of Attorney:
- a Continuing Power of Attorney includes decisions about your money and property, whereas
- a Welfare Power of Attorney relates to your future health or personal welfare.
Different attorneys (the named person you would like to help make decisions and take actions on your behalf) can be appointed for each type of Power of Attorney. A Continuing Power of Attorney can be used to help with financial matters before you are incapable but decisions about your welfare cannot be made until you are no longer able to do so yourself.
As no one has the right to act on your behalf without your legal authority, if you were suddenly no longer able to make decisions yourself, it would be a timely and costly process for your family or friends to get permission to do so. Not even spouses have automatic authority to make decisions or access your financial or household accounts without your permission. If you found yourself in a situation whereby your partner was unable to make these decisions you would have to go to court to get permission to make decisions for them and access their accounts.
It is always sensible to plan ahead and think about the ‘what if’s’. Having a Power of Attorney in place with help you, and your family, in the future should a major health emergency occur and your health deteriorates suddenly, making a stressful situation easier to deal with.