What an enduring power of attorney is, how it differs from guardianship, when to make one, what it makes possible in the context of long-term care and insurance claims, and why the timing is critical.
What an enduring power of attorney is
An enduring power of attorney is a legal document in which a person decides in advance who will make decisions on their behalf if and when they are no longer able to do so themselves.
The idea is simple but significant: instead of a court appointing a guardian after the event, the person chooses in advance who will act for them, and can even set out advance directions about how decisions should be made.
The document is drawn up by a lawyer who has completed the appropriate training, and is deposited with the Administrator General. It comes into effect only when the conditions set out in it are met.
Why it is critical in the long-term care context in particular
In a long-term care insurance claim, signatures are almost always required: on the claim form, on the medical confidentiality waiver, and sometimes on further documents.
While the insured person is competent there is no problem. Once they are no longer competent, and the family discovers there is no authorising document, the process stops. Then guardianship proceedings are needed, which take time and cost money.
The paradox is that in precisely the situations where the authority is most needed, it is usually too late to arrange it. An enduring power of attorney can only be made while the person still understands what the document means.
An enduring power of attorney against guardianship
Both tools serve the same purpose — allowing someone to act on behalf of a person who cannot — but they differ fundamentally.
- An enduring power of attorney is made in advance, by the person themselves, and by their choice
- Guardianship is appointed after the event, through court proceedings
- Under a power of attorney the person chooses who will act for them and sets out directions
- Under guardianship the court decides, sometimes between competing candidates
- A power of attorney is relatively quick and inexpensive; guardianship is longer and costlier
- Guardianship usually involves ongoing supervision and reporting
When to make one
The simple answer: while you do not yet need it. An enduring power of attorney can only be made while the person understands the document's meaning and its consequences.
That means that if significant cognitive decline is already present, the window may have closed. So it is a document worth arranging at an age when everything is fine, exactly like a will.
If there is an older parent in the family who is still lucid and no power of attorney has been made, that is one of the most useful things you can do this year. It is relatively inexpensive, takes little time, and prevents serious problems later.
What it should include
A power of attorney can be made for property matters, for personal and health matters, or for both. In the long-term care context both areas are relevant.
Make sure the document explicitly permits dealing with insurance bodies and with National Insurance, and receiving medical information. Those are exactly the actions a long-term care claim will require.
It is also worth thinking about appointing an alternative attorney, in case the first cannot act, and considering whether to appoint more than one person and on what basis.
The information here is general and does not constitute legal advice. An enduring power of attorney is drawn up by a lawyer qualified to do so.
Frequently asked questions
What is an enduring power of attorney?
A legal document in which a person decides in advance who will make decisions on their behalf if they cannot do so themselves. It is drawn up by a qualified lawyer and deposited with the Administrator General.
What is the difference between an enduring power of attorney and guardianship?
A power of attorney is made in advance by the person themselves and by their choice. Guardianship is appointed after the event through court proceedings, is longer and costlier, and usually involves supervision and reporting.
When should an enduring power of attorney be made?
While you do not yet need it. It can only be made while the person understands the document's meaning, so if significant cognitive decline is already present the window may have closed.
How does it relate to a long-term care insurance claim?
A claim requires signatures on the claim form and on the medical confidentiality waiver. When the insured person is not competent and there is no authorising document, the process stops until guardianship is arranged.
What should the power of attorney include?
It should explicitly permit dealing with insurance bodies and with National Insurance and receiving medical information. It is also worth considering the appointment of an alternative attorney.
Official sources for further checking
This is general information and does not replace personal medical, legal or insurance advice. Eligibility is determined by the documents and rules that apply to each case.
