For residents of Glasgow considering a Power of Attorney (PoA), it’s essential to understand that not all powers are created equal. Scottish law, under the Adults with Incapacity (Scotland) Act 2000, distinguishes between different types of authority an Attorney can hold. The two most common and distinct categories are Welfare Powers of Attorney and Financial (or Continuing) Powers of Attorney. While often granted in a single “Combined” document, their functions, activation triggers, and the decisions they cover are fundamentally different.
Understanding these distinctions is crucial for anyone powers of attorney Glasgow planning their future or assisting a loved one with their affairs.
Financial (Continuing) Power of Attorney: Managing Your Money and Property
A Financial Power of Attorney, formally known as a Continuing Power of Attorney in Scotland, grants your appointed Attorney the authority to manage your money, assets, and property.
What it covers:
- Banking and Investments: Accessing bank accounts, paying bills (utilities, mortgage, care home fees), managing savings, buying or selling investments, and dealing with pensions and benefits.
- Property Management: Renting out property, arranging repairs, or even selling a house on your behalf.
- Tax Affairs: Completing tax returns and dealing with HMRC.
- Contracts: Entering into or terminating contracts in your name.
- Business Affairs: Managing a personal business if applicable.
When it takes effect:
A key difference of the Financial PoA is its flexibility regarding when powers can be exercised. You can choose for the powers to:
- Take effect immediately upon the PoA’s registration with the Office of the Public Guardian (OPG), and continue even if you lose capacity. This can be useful for practical reasons, such as if you travel frequently or find it challenging to manage your daily finances.
- Only take effect upon your incapacity. In this case, the document should clearly state how your incapacity is to be determined (e.g., by a medical professional or two specified individuals).
Key characteristic: It deals exclusively with your financial and property matters.
Welfare Power of Attorney: Decisions About Your Person and Care
A Welfare Power of Attorney grants your appointed Attorney the authority to make decisions about your personal welfare, health, and daily care.
What it covers:
- Medical Treatment: Consenting to or refusing specific medical treatments on your behalf, including life-sustaining treatment (if explicitly stated in the document).
- Daily Care: Decisions about your diet, clothing, personal appearance, and leisure activities.
- Living Arrangements: Deciding where you live, such as whether you should remain at home with support, move into a care home, or transfer to a different care facility.
- Access to Information: Gaining access to confidential medical and social care records.
- Personal Support: Making choices about the type of personal support you receive.
When it takes effect:
Unlike a Financial PoA, Welfare powers can only be exercised if and when you lose the mental capacity to make these decisions for yourself. Your Attorney cannot override your wishes if you still have the capacity to make a specific welfare decision.
Key characteristic: It deals exclusively with your health and personal well-being, respecting your autonomy as long as capacity exists.
Why a Combined Power of Attorney is Often Recommended in Glasgow
While you can opt for a Financial PoA and a Welfare PoA as separate documents, the most common approach in Glasgow is to create a Combined Power of Attorney. This single document integrates both sets of powers, allowing you to appoint the same Attorney(s) for both financial and welfare matters, or different Attorneys if you prefer.
The benefits of a Combined PoA include:
- Comprehensive Coverage: It ensures all aspects of your life are covered, providing a holistic approach to future planning.
- Simplicity: Having one document can be less cumbersome for you and your Attorneys.
- Cost-Effectiveness: Solicitors in Glasgow often charge less for a single combined document than for two separate ones, plus you only pay one registration fee to the OPG.
Core Differences Summarised:
Important Considerations for Both Types:
- Mental Capacity: For any type of PoA to be validly granted, the Granter must have the mental capacity to understand the document and its implications at the time of signing. This is verified by the Certificate of Capacity, which a Glasgow solicitor or medical doctor will provide.
- Attorney Selection: The person (or people) you choose as your Attorney(s) must be someone you trust implicitly, regardless of whether they are managing your finances or your welfare.
- Registration: Both Continuing and Welfare Powers of Attorney must be registered with the Office of the Public Guardian (OPG) in Falkirk to be legally valid and effective in Scotland.
- Solicitor’s Role: Engaging a Glasgow solicitor is highly recommended. They can advise on the appropriate type of PoA, draft the document correctly, ensure legal compliance, and manage the registration process.
Understanding the distinct roles of Financial and Welfare Powers of Attorney is fundamental to effective future planning in Glasgow. By carefully considering both aspects, and seeking professional legal advice, you can ensure that your affairs will be managed precisely as you intend, providing crucial security and peace of mind for you and your loved ones.
