Power of Attorney

A power of attorney, or general power of attorney, is a legal document made by one person, who is called the ‘principal’, that allows another person to do things with the principal’s money, bank accounts, shares, real estate and other assets. This can include spending and managing the principal’s money, buying or selling shares for the principal or buying, selling, leasing or mortgaging the principal’s house or other real estate investments. The person who does these things for the principal is called the ‘attorney’.

Enduring Power of Attorney

An enduring power of attorney, unlike a general power of attorney, is one which continues to operate after the principal has lost mental capacity. An enduring power of attorney is normally used if the principal wishes their attorney to make decisions for them in the long term. Making an enduring power of attorney while you still have mental capacity is a cheap, easy and practical step to prepare for the future. Once you have lost the mental capacity to understand what you are doing, you cannot make a power of attorney.

Enduring Guardianship

An Enduring Guardianship appointment allows someone else to make medical and lifestyle decisions on your behalf. An Enduring Guardian can only make lifestyle decisions such as health decisions. You should make an Enduring Power of Attorney if you want someone to make financial decisions on your behalf if you lose mental capacity.