Most people have heard of a Power of Attorney, but fewer realise that in Scotland there are different types – and understanding the differences matters. Having the right type in place can make all the difference if you or a loved one ever needs help managing day-to-day affairs. It's almost like having a Lifetime Insurance Policy.

In Scotland, Powers of Attorney are governed by the Adults with Incapacity (Scotland) Act 2000. The two main types are a Continuing Power of Attorney and a Welfare Power of Attorney. They serve different purposes, cover different aspects of your life, and come into effect in different ways. Many people choose to have both, but that is not always necessary. It depends on your circumstances.

What is a Continuing Power of Attorney?

A Continuing Power of Attorney covers your financial and property affairs. It gives someone you trust – your Attorney – the authority to manage your bank accounts, pay your bills, deal with your investments, and handle the sale or purchase of property on your behalf.

The word "continuing" is important. It means the power remains effective even if you lose the capacity to make these types of decisions for yourself. For example, because of dementia, a stroke, or a serious accident. This sets it apart from a general Power of Attorney, which is sometimes granted purely for convenience – perhaps to allow someone to manage your affairs while you are abroad – but which falls away the moment you lose capacity. In other words, a general Power of Attorney stops working precisely when you might need it most.

A Continuing Power of Attorney can be used as soon as it is registered with the Office of the Public Guardian, even while you still have full capacity, if that is what you want. Some people find this helpful if they would like a trusted family member to assist with banking or financial matters on an ongoing basis.

What is a Welfare Power of Attorney?

A Welfare Power of Attorney covers decisions about your personal welfare. This includes where you live, the medical treatment you receive, and the care arrangements made for you.

Unlike a Continuing Power of Attorney, a Welfare Power of Attorney can only be used when you have lost the capacity to make these decisions for yourself. It cannot be exercised while you are still able to manage your own welfare. This is an important safeguard – it means your Attorney cannot step in to make personal decisions on your behalf unless it is genuinely necessary.

Do you need both?

It is common for people to grant both a Continuing and a Welfare Power of Attorney at the same time, often in a single document known as a Combined Power of Attorney. This provides comprehensive protection, covering both financial matters and personal welfare.

However, there are situations where you might choose to have one but not the other. For instance, you might feel confident that your financial affairs are straightforward and well managed, but you want to ensure that someone you trust can make medical and care decisions if the need arises. Alternatively, you might already have informal arrangements in place for your welfare, but you want to give formal authority to an Attorney to manage your finances.

The important thing is to consider what would happen if you could no longer manage your affairs. Without a Power of Attorney in place, your family may have no choice but to apply to the court for a Guardianship Order. This can be a lengthy, expensive, and stressful process – and the outcome is not always what you or your family would have wanted.

When should you put a Power of Attorney in place?

The short answer is: sooner rather than later. A Power of Attorney can be granted only while you have the mental capacity to understand what you are doing. If you wait until capacity is lost, it is too late.

The Power of Attorney also needs to be registered with the Office of the Public Guardian before it can be used, which – at time of writing – may take around 12 months.

Having a Power of Attorney is a sensible step for any adult to take, regardless of age or health. Life is unpredictable, and having one in place means you have chosen someone you trust to look after your interests, rather than leaving them to chance. We would also recommend reviewing your Power of Attorney regularly and updating it if your circumstances change, as you would with your Will.

How can Paris Steele help?

At Paris Steele, we take the time to understand your individual circumstances and explain your options clearly, so you can make informed decisions about what is best for you and your family.

Our experienced team will ensure your Power of Attorney is carefully drafted, properly signed, and registered with the Office of the Public Guardian.

Get in touch today to find out more.