Power of Attorney
A power of attorney is a legal document that allows an individual (the donor) to appoint one or more trusted individuals (known as attorneys) to carry out certain actions on their behalf. The attorney is granted authority to do on behalf of the donor anything which he can lawfully do by an
attorney, for example, functions which the donor has as a trustee or personal representative are excluded.
A general power of attorney would often be for short-term usage, for example, if the donor is travelling for an extended period, if the donor is selling or purchasing a property, or simply the donor requires someone to handle day-to-day banking whilst they are unavailable.
However, it is very important to note that a general power of attorney will become invalid if the donor loses mental capacity to manage their affairs.
Enduring Power of Attorney
An enduring power of attorney is a legal document which allows the donor to appoint one or more trusted individuals as their attorney to make decisions on their behalf regarding their financial affairs and property. The enduring power of attorney shall take effect as soon as it has been signed.
Unlike a general power of attorney, an enduring power of attorney remains valid even after the donor loses mental capacity, making it an important safeguard for the future. If required, theenduring power of attorney can include restrictions to limit the decisions an attorney can make, ensuring it reflects the donor’s wishes.
After signing the enduring power of attorney, if the attorney has reason to believe that the donor is or is becoming mentally incapable of managing their property and affairs the attorney should, as soon as is practicable, make an application to the Isle of Man Courts to register the enduring power of attorney.
Life can be unpredictable, and there may come a time when an individual cannot manage their own affairs therefore, an enduring power of attorney enables a trusted person or persons to step in and make such decisions, avoiding delays and stress. The enduring power of attorney can provide clarity and can give peace of mind knowing the donor’s financial and personal matters will be handled accordingly.
Capacity Act
The Capacity Act 2023, once fully enacted, will replace the current enduring power of attorney with a lasting power of attorney. The lasting power of attorney will cover both property and financial affairs as well as health and welfare decisions, ensuring that advance decisions about future care are legally protected. This change shall provide greater flexibility and security for individuals planning ahead.
Living Wills
A Living Will is essentially a document which sets out a patient’s wishes regarding health care and how they want to be treated if they become seriously ill and unable to make or communicate their own choices.
It cannot be guaranteed that a patient’s wishes, as set out in their Living Will, will be followed/adhered to by the medical practitioner responsible for that patients care and currently a Living Will is not legally binding in the Isle of Man. Nevertheless, a Living Will does offer assistance to medical professionals when making decisions and helps by clearly setting out a patient’s wishes should there come a time when they are unable to consent to or refuse medical treatment.
Our Trust and Private Client Team have extensive knowledge on all matters associated with powers of attorney and Wills. If you require any further information or would like to make an appointment to meet with one of the team, please contact DQ Advocates on 01624 626999.
Disclaimer
The information and/or opinions contained in this article is necessarily brief and general in nature
and does not constitute legal or taxation advice. Appropriate legal or other professional advice
should be sought for any specific matter. Any reliance on such information and/or opinions is
therefore solely at the user’s own risk and DQ Advocates Limited (and its associates and
subsidiaries) is not responsible for, and does not accept any responsibility or liability in connection
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