What’s the right age to draw up a Power of Attorney?

You don’t need a Power of Attorney till you’re “old” is a comment we hear frequently, but is that actually true?

Statistically speaking, there is a greater risk of becoming incapacitated as you get older. However, unexpected illnesses and accidents happen. That might mean that if you are incapacitated, your family might find it extremely difficult to manage. It might involve having to have a guardian appointed. This will undoubtedly be stressful, expensive and time consuming.

You see, a Power of Attorney can be a very useful tool to use when unexpected things happen to you. Perhaps it’s a bit like an insurance policy – it’s there when you need it!

Powers of Attorney are not new. People have been granting Powers of Attorney for years – it’s just there are some options available now that were not available in the past.

Traditionally, a person would grant a Power of Attorney if, for instance, they were going abroad for a time and needed someone they trusted to make decisions and do things for them for them and sign documentation in their place when they were away. You can still prepare one of those Powers of Attorney today – there’s nothing stopping you. However, there is a “gap” in that those types of Power of Attorney can no longer be used if the person who granted them becomes incapacitated.

This “gap” was closed by the Adults with Incapacity (Scotland) Act 2000 which introduced two new types of Power of Attorney – the Continuing Power of Attorney and the Welfare Power of Attorney.

Each of these types of Power of Attorney continue should you become incapacitated and cannot look after your own affairs.

When drawing up a Power of Attorney, most people nowadays prepare a combined Continuing and Welfare Power of Attorney. This means that your attorney will be able to look after your finances and also make decisions about your welfare.

You can also have a Power of Attorney drawn up but specify that it should not come into effect unless you become incapacitated. Alternatively you might wish your Power of Attorney to come into force immediately as that would allow your attorney to do things on your behalf which you might otherwise have difficulty doing. The choice is yours.

None of us can predict the future and we have no way of knowing if or when we might be unable to look after our own affairs. So, when we’re faced with the question of when would be the right time to draw up a Power of Attorney, the honest answer is “right now”!

If you would like to discuss preparing a Power of Attorney with us, please get in touch.