More and more people appreciate the wisdom of granting a Power of Attorney. As a Power of Attorney can only be granted if you have sufficient mental capacity it is important to prepare it when you are fit and able. A Power of Attorney is a legal document authorising another person (your “Attorney”) to handle your affairs on your behalf. The traditional Power of Attorney was relatively straightforward and, for example, was often used to allow documents to be signed in a person’s absence, say on holiday. Recent legislation however, the Adults with Incapacity (Scotland) Act 2000, has given rise to more far reaching types of Power of Attorney.

A Continuing Power of Attorney, sometimes known as a Financial Power of Attorney, gives the Attorney power to deal with the granter’s property or financial affairs. This type of Power of Attorney can come into effect whilst the granter has capacity and will continue should the granter lose capacity at some future point.

A Welfare Power of Attorney gives the Attorney the power to make decisions concerning the health and personal welfare of the granter, but the powers cannot be exercised until a doctor has certified that the granter is no longer able to make those decisions personally.

It is quite common for the Continuing Power of Attorney and a Welfare Power of Attorney to be combined in one document.

Until recently the focus has always been to advise clients that they should make a Will. However, we are now recommending to all our clients that they consider granting a Power of Attorney as we strongly believe that it is in their best interests to consider doing so. It provides the security of knowing that your affairs can be dealt with by someone you trust in times of accident or illness and it provides the comfort of knowing that your welfare needs will be met in the way you wish when you are no longer able to make those decisions for yourself. Quite apart from all of that however, the cost of not having a Power of Attorney in circumstances where you are unable to make decisions for yourself is very high. The law provides that if ill health prevents you from granting a Power of Attorney a Court may, if your family approves, appoint a Guardian to manage your affairs for you. The cost however of obtaining such a Guardianship Order can run to many thousands of pounds.

For more information please read our “A Guide to Making a Power of Attorney”.

If granting a Power of Attorney is of interest to you, please contact any of our Partners, Gavin Crowe, Bryden Crearie or Heather MacDiarmid. The cost involved in preparing the Power of Attorney and registering it with the Office of the Public Guardian will vary depending upon the type of Power of Attorney required.