There was a time when a Power of Attorney was granted for the convenience of the granter. If the granter lived or worked abroad or travelled extensively, they would find it convenient to grant a Power of Attorney in favour of someone they trusted to deal with their affairs during their absence. However, whilst those types of Power of Attorney are still in use today, one of their failings was that they fell if the granter became incapacitated.
To address this problem, legislation, in the form of the Adults with Incapacity (Scotland) Act 2000 was introduced. This act heralded two new types of Power of Attorney that would survive should the granter become incapacitated.
Welfare and Continuing Powers of Attorney
The Adults with Incapacity (Scotland) Act 2000 introduced these two new types of Powers of Attorney which people could grant to ensure their welfare and finances could be managed even if they because incapacitated.
As you might expect, a Welfare Power of Attorney allows the attorney to deal with all aspects of the granter’s welfare. A Continuing Power of Attorney empowers the attorney to deal with all aspects of the granter’s finances irrespective of the granter’s capacity.
Frequently, the powers contained in each of these types of Powers of Attorney are combined with the creation of a Continuing and Welfare Power of Attorney.
Convenience versus Insurance
Whilst some might create a Power of Attorney because it is convenient and it suits them, they might not wish it to survive should they become incapacitated. However, given the practical impact of Welfare and Continuing Powers of Attorney in their ability to survive the granter becoming incapacitated, these are more the norm than the traditional Powers of Attorney.
In either case, we should point out that even if you grant a Power of Attorney, you can continue to look after your own affairs. You are under no obligation to leave that to your attorney.
However, whereas a traditional Power of Attorney may well be convenient, it will not survive should you become incapacitated. Welfare and Continuing Powers of Attorney do survive the incapacity of the granter and continue to allow the attorney to deal with the granter’s affairs. These types of Power of Attorney, as well as being convenient, act as a kind of insurance policy should the granter become incapacitated.
It will never happen to me!
Perhaps these are famous last words. There is a myth that suggests you do not have to draw up a Power of Attorney until you reach “old age”. Consider this. Life is uncertain and none of us know when or if we might sustain a life changing illness or suffer a catastrophic accident which results in us being unable to look after our own affairs.
If that were to happen to you and you had not drawn up a Power of Attorney, the only option available would be to have a guardian appointed. This can be costly and time consuming and someone would been to be prepared to accept responsibility of being a guardian.
However, if you had drawn up a Welfare and/or Continuing Power of Attorney, your attorney can deal with your affairs and make the kinds of decisions you are likely to make yourself. These types of Power of Attorney act almost like an insurance policy because they allow a seamless transition of authority from you to your attorney to make decisions that benefit you.
What should you do if you want to draw up a Power of Attorney
The first thing you must do is contact us. Our solicitors have years of experience in advising clients and drawing up Powers of Attorney. We will explain the powers your attorney will enjoy, when they come into play and how you can continue to deal with your own affairs even if you’ve granter a Power of Attorney.
If you would like to draw up a Power of Attorney, contact us today.
