We all expect to make our own decisions, pay our bills and look after ourselves for our lifetimes. We all expect to continue to have ‘decision-making capacity’. However, you may suddenly and unexpectedly lose the ability to make your own decisions. This could be as a result of a car accident, stroke, serious injury or a serious illness. Alternatively, you may be diagnosed with a condition, such as dementia, that gradually reduces your ability to make decisions.
Many people mistakenly think that, if they do not have the ability to make a financial decision, then a spouse or partner, family member or close friend will automatically be able to make the decision for them and manage their financial affairs. This is not always legally the case. You may need a legal decision maker for a short period of time or for the rest of your life.
An enduring power is a document which enables you to appoint a decision-maker to make certain types of decisions on your behalf. Unlike a non-enduring power, an enduring power can be used even if you do not have the ability to make decisions for yourself.
If you do not have a Power of Attorney is place, a relevant body will appoint someone you know, or an independent decision maker such as the Public Trustee or private administrator. If an independent decisionmaker is appointed, they will do their best to make financial decisions that reflect your wishes, but the independent decision maker has never met you and is unaware of your interests and values, needs or desires. They can also charge for their services.
