What is a Power of Attorney?
Author:
Andersons Solicitors
Publish Date: December 21, 2008
An Enduring Power of Attorney is a document by which the person giving the power of attorney (the donor) appoints another person or persons (the donee) to be their attorney. This effectively enables the donee of the power to deal with the financial affairs of the donor.
As suggested above, the donor can grant the power to one person, more than one person jointly, or to persons in order of priority.
An Enduring Power of Attorney may be granted to persons immediately, or only in the event of the donor suffering legal incapacity.
Once a person loses legal capacity, they can no longer draw an Enduring Power of Attorney.
To give an example of the usefulness of an Enduring Power of Attorney:-
A person has made an Enduring Power of Attorney whilst in a state of good mental health to another family member. That person then loses mental capacity as a result of an accident. The family member can then, with the Enduring Power of Attorney, deal with the financial affairs of the injured person. For example, selling property and arranging appropriate care for the injured person. However, if the injured person had not drawn the Enduring Power of Attorney the family member who may still have the responsibility of dealing with the injured persons affairs would not easily be able to deal with the injured person’s financial affairs.
