It has recently been reported that actor Bruce Willis has been diagnosed with a form of dementia called frontotemporal dementia. Whilst this is a rare form of dementia, unlike Alzheimers and Vascular dementia, frontotemporal dementia is typically diagnosed in people under the age of 60 and is the most common form of dementia diagnosed in people between 45 and 60 years old.
Often people may think that they are ‘too young’ for putting a Power of Attorney in place or say ‘they’ll obtain a Power of Attorney when they need one’. However, this is a document which should be put in place sooner rather than later.
A recent study revealed that the average age of a person who puts in place a Power of Attorney is currently 78 years old, therefore it is important, more than ever, to change the perception that Powers of Attorney are only for the elderly.
What is a Power of Attorney (PoA)?
A PoA is a document which allows you to choose who you would wish to deal with your affairs if you were to lose capacity, either temporarily or on a more permanent basis. The individuals appointed are known as your ‘attorneys’ and you can decide what powers you wish for them to have. This document is prepared whilst you still have capacity.
Are there different types of PoA
When putting in place a PoA, you have the ability to chose what type you would wish to have. There is an option to put in place a Financial Power of Attorney or a Welfare Power of Attorney. However, the most popular appears to be the Combined Financial and Welfare Power of Attorney which deals with both aspects in one document.
A Financial PoA allows your attorneys to assist you with you day to day aspects of your life, such as paying bills, online banking, or collecting benefits and money due to you. This form of PoA allows your attorneys to assist you whilst you still have capacity but perhaps struggle dealing with every day tasks. Whist you still have capacity, your attorneys are only able to assist you with your finances provided you have given permission for them to help you.
On the other hand, a Welfare PoA will only allow your attorneys to act if you are deemed to have lost capacity. In this situation, your attorneys will have the ability to make decisions on any welfare and medical aspects of your life. Whilst you still have capacity, your attorneys are not able to make decisions in relation to your health.
Who can you appoint as an attorney?
You are able to choose whoever you would wish to act as your attorney. We would recommend appointing someone you trust as these individuals will be dealing with your affairs. We would also recommend appointing more than one person to act to ensure you always have someone who can assist you.
What happens is you don’t have a PoA in place?
If you were to lose capacity and did not have a PoA in place, the alternative option would be a ‘Guardianship Order’. This would involve your family or next of kin to make a court action to allow them to assist you after you have lost capacity. This process takes time and is often quite costly which can cause additional stress to families possibly already dealing with a stressful situation.
It is always a good idea to plan ahead for the future, regardless of your age. It may be a long time before you need to use your PoA or you, hopefully, may never need to use it all. However, by planning ahead and putting a PoA in place, you have the peace of mind knowing that this document is ready to be actioned, if required, and that you have individuals who you trust to act on your behalf.
If you wish to discuss Powers of Attorney and your own circumstances in more detail, please get in touch with one of our Private Client team.
