Estate Planning

What is the difference between Power of Attorney and Enduring Power of Attorney?

An Enduring Power of Attorney differs from a Power of Attorney primarily in that it continues to be in force even after you lose mental capacity.

You can select someone to handle your financial problems on your behalf by signing a Power of Attorney. You get to decide how specific, confined, and how long it is. You might also decide to restrict some of the things that can be done on your behalf. Additionally, a power of attorney may be revoked at any time. A Power of Attorney, however, is no longer valid if you become mentally incompetent.

An Enduring Power of Attorney, in contrast to a Power of Attorney, will still be in effect even if you were to lose your mental capacity. It will be made clear in the Enduring Power of Attorney that this is to continue even if you become mentally incapacitated. It is a crucial document that will provide your chosen family member or friend access to manage your finances. Your Enduring Power of Attorney might be narrow or specific, much like Powers of Attorney. You may also decide to set a threshold for when the power can take effect, such as when your treating physician certifies that you are incapable of managing your financial affairs.

Both a Power of Attorney and an Enduring Power of Attorney include conditions that you can set. They play a significant role in giving you and your family a sense of security. Particularly enduring powers of attorney offer protection in the event that you become mentally incapacitated due to an accident or sickness and will assist others in organizing your money so they may best take care of you. Only when a person is mentally competent may a power of attorney or an enduring power of attorney be executed. A lawyer or solicitor will witness your signing and sign a certificate attesting to your comprehension in the event of an Enduring Power of Attorney.

 

 
Please be advised this is general information only, and is not to be taken as legal advice. If you would like more information, or have a legal query, please contact Abbott & Mourly directly.
Reviewed: 18/01/2024