This week on the Prestige Tax and Trust Services blog we ask, what is the difference between enduring and lasting power of attorney?
What is Lasting Power of Attorney?
Essentially, a lasting power of attorney is an official document that enables you (the donor) to appoint another person/people (called the ‘attorneys’) to make decisions on your behalf, should you be unable to make your own decisions i.e. if you were medically incapacitated.
Legally, you need to be over the age of 18 and of sound mind. However, once you have created a power of attorney, you have peace of mind for you and your loved ones, should the worst happen and you be unable to make informed decisions for yourself on issues such as health and welfare, as well as property and finance.
The Prestige Tax and Trust Services blog is always seeking to keep you informed over the legal matters which could affect you, which is why we’ve previously blogged about lasting power of attorney before. Take the time to read our earlier article, and find out more about why you need, and how you create lasting power of attorney, with the help of legal experts such as Prestige Tax and Trust Services.
What is Enduring Power of Attorney?
So what is enduring power of attorney then, after all, they do sound similar. It’s a question many people have asked, and honestly, they are pretty similar and they do offer similar legal protections.
Essentially, an enduring power of attorney similarly allows you to appoint someone to manage your personal, property or financial affairs. It could be used before or after someone lost their mental capacity, however as of October 2007, they were replaced with lasting powers of attorney. If an enduring power of attorney was made and signed before October 2007, however, it can still be used.
What’s the Difference?
Basically, the only real difference is when it can be used. An enduring power of attorney could be used straight away, once it was signed by all parties. It must still be registered with the Office of the Public Guardian if the donor is losing, or completely lost, their ability to make decisions for themselves.
A lasting power of attorney, however must be registered with the Office of the Public Guardian before it can be implemented.
When Do You Need to Know the Difference?
Generally, enduring powers of attorney aren’t so common anymore, and if you are looking to create power of attorney, you’ll create a lasting power of attorney; in this case, the difference doesn’t concern you.
If you have already created an enduring power of attorney, you can still use it. Remember that it can be implemented without being registered with the Office of the Public Guardian, unless the donor is losing or has lost their ability to make decisions.