Wills and Powers of Attorney
What is a Will and Power of Attorney
A Will and Power of Attorney are two types of legal documents. They operate at different times of your life and have slightly different purposes.
Wills
A Will is a document in which you set out what you want to happen to your assets and property when you die. A Will only operates on your death. It cannot be used while you are alive.
You appoint Executors in your Will to look after your interests when you die. Your Executors register your death and arrange any funeral or ceremony for you. They secure your property and any assets that you have (which may be your home, your cash, bank accounts, investments and your personal belongings). They pay your bills and settle any debts from the money that you had. They can sell your home and close your bank accounts.
Once they have paid off your debts, your Executors will pay out what is left over, dividing it according to the people that you have nominated in your Will to receive anything.
Powers of Attorney
There are lots of different type of Power of Attorney but the common ones that we use now are called Lasting Powers of Attorney (LPAs). LPAs are documents only operate while you are alive. They end on your death and cannot be used after you die.
You appoint Attorneys in your LPAs to look after your interests during your lifetime but when you cannot make decisions for yourself. This would be because you had lost your mental capacity to do so.
There are two types of LPA; an LPA where you appoint Attorneys to make financial decisions on your behalf and an LPA where you appoint Attorneys to make health and care decisions on your behalf.
Your Attorneys will be able to use your money to pay your bills, contact organisations about your investments and apply for any form of financial benefits that you may be entitled to from the State or Local Authorities. An Attorney can sell your home, arrange care for you (either in your home or in residential accommodation) and take decisions about the medical treatment you receive. Attorneys can also take decisions about any life sustaining treatment that you have.