Whilst the benefits of writing a Will are commonly known, most people entirely ignore Powers of Attorney. The traditional view that they are for the elderly or for someone going on a long trip abroad could not be further from the truth.

Whatever your stage in life or financial status, a Power of Attorney can play a vital role.

5 Key Points
	Don't leave it till later. You cannot enter into a Power of Attorney when you need it most - i.e. once you have lost mental capacity
	A Power of Attorney can be revoked at any time if you change your mind (whilst you still have capacity)
	A Power of Attorney is the only way for you to guarantee who will have legal authority to handle your affairs when the financial or medical circumstances require it.
	A Will has no effect until you die. A Power of Attorney is the only way to ensure your assets are properly managed.
	A Power of Attorney now gives you the opportunity to record any personal welfare requirements you have, previously covered by a 'living will'.

A Power of Attorney is a legal document through which you give someone the authority to act on your behalf. Since October 2007 this is done by way of 'Lasting Power of Attorney' (LPAs).

LPAs replaced Enduring Powers of Attorney. LPAs are undoubtedly more involved documents and have not received such a warm response from the public but they provide a more sophisticated opportunity to enable someone to look after your affairs in the round.

Why might someone need to look after your affairs?

It may sound gloomy, but the onset of mental incapacity can befall anyone, not just the elderly. Furthermore, whilst the loss of 'mental capacity' (a legal concept which means the requisite ability to perform specific actions, such as making a will or a gift, entering into a contract or in the broader spectrum, being able to manage your own property and affairs) is the most common circumstance where a Power of Attorney is required, there are other situations where it would be equally beneficial, such as a physical injury preventing you from signing cheques, or being out of the country for perhaps longer than planned.

The experience of dealing with banking call centres demonstrates the problem - imagine having to do this on behalf of a loved one who was unable to give you even their password or access code.

With the identification procedures and rigid rules and policies of banks and other institutions, even the simplest of transactions can become a nightmare. And it would simply not be legally possible to handle more complex transactions.

There is no automatic right and the only option would be for someone close to you to apply to Court for authority. There is no guarantee that such authority would be granted to the person you would choose.

Moreover where it is, such authority is subject to ongoing Court oversight and regulation. This whole process is time consuming and expensive and can be easily avoided by entering into a Power of Attorney whilst you are able so to do. These days, strokes, embolisms and brain tumours are rarely fatal – far more likely is that they will result in a long-term illness.

By executing a Power of Attorney before a crisis arises you can be certain that your affairs can be properly conducted. But there is more, a Power of Attorney can also provide you with an opportunity to set out any other requirements or desires you might have. For example, how you wish for certain assets to be handled or how you wish to be cared for in certain circumstances.

You may have firm views about withholding medical treatment or ‘non resuscitation’ instructions – this is the only way you can ensure your views will be respected.

Such guidance, which used to be included in a ‘living will’ and are now covered by Powers of Attorney, can be of enormous comfort and help to your family at a time when they are quite possibly under great strain.

If you would like to know more about Powers of Attorney or for a review of your personal legal affairs more generally, please contact Andrew J. Kidd on 020 7749 2738 or E-mail at ajk@silvermansherliker.co.uk.

Andrew J. Kidd
Head of Private Client Law Unit