Question 4
My husband is becoming forgetful. As he has always dealt with the domestic finances, I am worried about how these will be dealt with if he gets worse. My son has mentioned a ‘Power of Attorney’ but I don’t really understand what that involves?
A Power of Attorney is a document by which a person (the “granter”) appoints one or more other people (the “attorney” or “attorneys”) as his agents, and confers on his attorneys the power to carry out various transactions on his behalf (such as operating on his bank account, lodging his tax return, paying bills, etc.). Powers can either be general (i.e. conferring a wide authority over the whole of the granter’s financial affairs) or specific (limited to a particular transaction) and can be permanent or temporary (e.g. to cover a period of ill health or absence abroad).
The granter must understand the nature and effect of the Power at the time the Power is granted. This is called ‘legal capacity’. Once granted the Power can endure until the granter’s death, even if he becomes confused some time after he has granted the power (that is, he loses his legal capacity).
The grant of a Power of Attorney does not remove any of the granter’s authority to continue to deal with his own affairs for as long as he is willing and able to do so, it just gives his attorneys authority at the same time. The Power is normally granted to family members and/or professional advisers and can be revoked at any time as long as the granter has legal capacity.
Your husband probably has capacity to grant a Power of Attorney. If you or your solicitor has any doubts about his capacity, medical advice should be sought. Your husband should be asked to consider granting a Power as soon as possible.
Since 2001 it has also been possible to grant a Welfare Power of Attorney. This performs a similar function to a Financial Power of Attorney but, as the name suggests, it is concerned with the granter’s person rather than his property. Such a Power authorises the welfare attorneys to take healthcare and personal care decisions on behalf of the granter. Unlike a Financial Power, however, a Welfare Power of Attorney can only be exercised after the granter has lost the capacity to make decisions for himself.
Your husband may wish to consider granting a Welfare Power of Attorney also.
