MONEY MATTERS
POWER of Attorney There may come a time in everyone’s life when they have to consider handing control of their affairs over to a trusted ally, so Peter d’Aguilar has been investigating the role and purpose of appointing a Power of Attorney
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o one really likes the idea of handing over control of their life to someone else. Nevertheless, if this should become a necessity, it can be reassuring to know that a person you trust has the authority to assist you in managing your affairs. Power of Attorney is a legal document that lets you appoint one or more people to help you make decisions, or to make decisions on your behalf. This gives you more control over what happens to you if you have
an accident or an illness that prevents you from making your own choices. There are a number of reasons why this might become necessary. It could result from a temporary situation – for example, needing help with everyday tasks such as paying bills while indisposed. Longer-term plans may be necessary, for instance after a diagnosis of dementia that could damage your mental capacity
Power of attorney comes in three different forms for making future decisions. Mental capacity can fluctuate from day to day and affect different aspects of life – from undertaking everyday tasks to making major financial choices. Dementia may not necessarily prevent a person from evaluating different options. However, if the ability to make or communicate decisions happens before setting up
a power of attorney, the Court of Protection could become involved. Power of attorney comes in three different forms. Ordinary Power of Attorney covers decisions about financial affairs and is only valid while you have mental capacity. It is appropriate if you need cover for a temporary period – for instance during a hospital stay or while on holiday, if it is difficult to visit the bank or post office or if you need to give someone access to your account. You can limit the authority you give your attorney, specifying which assets they can control – for example, your bank account but not your home. To set up an Ordinary Power of Attorney you should consult a solicitor or your local branch of Citizen’s Advice, as there is a standard form of wording that must be used. Lasting Power of Attorney (LPA) comes in two forms – decisions about property and financial affairs, and decisions about health and welfare. A Lasting Power of Attorney comes into effect if you lose mental capacity, or October 2021 | SUSSEX LIVING 143
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