Power of Attorney (POA) is a legal arrangement that gives one person (known as the “attorney” or “agent”) the authority to make decisions on behalf of another person (the “donor” or “principal”). This document plays a crucial role in managing financial, health, and legal matters if a person becomes unable to make decisions for themselves due to illness, injury, or incapacity.
At Higgins Miller Solicitors, we understand the importance of a well-prepared Power of Attorney and are here to guide you through every step, ensuring your rights and wishes are clearly outlined and respected.
What is Power of Attorney?
Power of Attorney is a legal document that grants someone the authority to make decisions for you in specified areas, either for a temporary period or if you become incapacitated. This document is typically set up to manage financial affairs, health care decisions, or both, depending on the type of POA.
There are different types of Power of Attorney, each designed to meet specific needs:
Ordinary Power of Attorney: This grants temporary authority to an agent to manage specific financial affairs. It’s often used when someone is physically unavailable to manage their affairs (e.g., traveling abroad) but still mentally capable.
Lasting Power of Attorney (LPA): A Lasting Power of Attorney remains in effect if the donor loses mental capacity. There are two main types of LPAs:
- Property and Financial Affairs LPA: Grants authority over financial matters such as managing bank accounts, paying bills, and even selling property.
- Health and Welfare LPA: Allows the agent to make decisions about medical treatment, daily care, and living arrangements, but only takes effect if the donor loses mental capacity.
Enduring Power of Attorney (EPA): EPAs were replaced by LPAs in 2007 in England and Wales, though existing EPAs are still legally valid. EPAs focus only on financial decisions and remain effective if the donor becomes mentally incapacitated.
Why is a Power of Attorney important?
Power of Attorney is an essential tool for safeguarding your affairs in the event you’re unable to manage them yourself. Without a POA in place, your family might face complex and costly legal processes to gain the authority to make decisions for you.
Below, we have listed some of the key benefits of setting up a Power of Attorney –
- Maintaining control and peace of mind: By assigning someone you trust as your agent; you maintain control over who will make decisions on your behalf if you are unable.
- Avoiding legal complications: Without a Power of Attorney, family members would need to apply for a Deputyship through the Court of Protection, which is both time-consuming and expensive.
- Ensuring your wishes are respected: A POA allows you to outline your preferences in detail, ensuring your chosen representative respects your wishes in financial, medical, or personal matters.
- Managing financial affairs efficiently: In cases where you cannot manage your financial responsibilities, an agent can handle these tasks, protecting your assets and ensuring bills are paid.
Setting up a Lasting Power of Attorney (LPA) with Higgins Miller Solicitors
Creating an LPA requires careful consideration and an understanding of the legal process. At Higgins Miller Solicitors, we help our clients set up a legally sound LPA, ensuring they choose the right type, assign the right agent, and specify their preferences accurately. Here’s how we can assist:
Choosing the right type of LPA for you
We help you understand the differences between the Property and Financial Affairs LPA and the Health and Welfare LPA. Many people choose to set up both to ensure comprehensive coverage, but we will guide you through each option and determine what’s best for your needs.
Selecting the right attorney
It’s crucial to select a trusted individual as your attorney—this person will need to act in your best interests and make decisions that align with your values and goals. We help our clients think carefully about this decision, considering factors like reliability, understanding of the donor’s wishes, and willingness to take on the role.
Drafting and registering the LPA
Once you’ve chosen the type of LPA and your attorney, we assist with drafting the document, including any specific instructions or preferences. We then help register the LPA with the Office of the Public Guardian (OPG), as it cannot be used until it’s officially registered.
Providing guidance on duties and responsibilities
If you’re setting up an LPA for a loved one, we can provide guidance on the duties and responsibilities of an attorney, ensuring a full understanding of the legal and ethical requirements of the role.
When does an LPA come into effect?
A Property and Financial Affairs LPA can come into effect as soon as it is registered, provided the donor specifies this in the document. This allows an agent to assist with financial management even while the donor still has mental capacity. However, the Health and Welfare LPA only takes effect if the donor loses mental capacity, ensuring that the donor remains in control of their personal care decisions for as long as possible.
What if there’s no Power of Attorney in place?
If a person loses capacity and has not set up an LPA, their family or close associates must apply to the Court of Protection to be appointed as a “deputy.” This process can be costly, time-consuming, and may lead to delays in managing important aspects of the donor’s care or finances. An LPA pre-empts this issue by designating a trusted individual who can step in immediately if necessary.
How Higgins Miller Solicitors supports you in establishing Power of Attorney
At Higgins Miller, we are dedicated to providing compassionate and professional support for setting up a Power of Attorney. Our team is committed to making the process as straightforward and stress-free as possible, ensuring that all legal requirements are met and your wishes are clearly outlined. Whether you’re considering a Power of Attorney for yourself or assisting a family member, we offer personalised, knowledgeable guidance every step of the way.
- Expertise: Our team of solicitors has extensive experience in Power of Attorney, enabling us to offer insights into all aspects of setting up and managing a POA.
- Personalised service: We take the time to understand each client’s unique needs and goals, ensuring the Power of Attorney is tailored to your specific situation.
- Complete peace of mind: By working with Higgins Miller, you can be confident that your Power of Attorney will be set up properly, providing security for you and your loved ones.
Power of Attorney – Our final thoughts
Establishing a POA is a proactive step that offers peace of mind and protection for both you and your family. By appointing someone you trust to make decisions on your behalf, you ensure your wishes are respected, and your affairs are managed smoothly should you lose the ability to do so yourself.
At Higgins Miller Solicitors, we are here to guide you through every detail of this important process, helping you secure a reliable plan for the future. Contact us today to discuss how we can help set up your Power of Attorney, ensuring your best interests are safeguarded for years to come.
For all further information on POA or for any questions you may have, please don’t hesitate to give us a call at 0161 429 7251. For those clients who prefer to communicate online, feel free to email us at [email protected].