When Do You Need A Power of Attorney - The Fair Deal Scheme

 

There is constant talk about the importance of having an Enduring Power of Attorney in place, for senior individuals, especially, when it comes to decisions like applying to the Nursing Home Support Scheme.

Why is it that important?

The lack of an Enduring Power of Attorney may reject your approval to get Nursing Home Care funding if you are not mentally capable to consent to the decision. A common complexity faced by individuals suffering from dementia! Here's everything you need to know. 

What Is An Endurance Power of Attorney  

Power of Attorney (PoA) and Endurance Power of Attorney (EPA) are two different things. While the former is focused on business processing, the latter is more about personal life, personal finance and assets and medical needs. Without having an Enduring Power of Attorney, it is illegal to access or use a person's money. It is a legal document wherein a person acts as a "Donor" and appoints a trusted person as their "attorney" to act on their behalf to make crucial life and financial decisions, in the case the former becomes mentally disabled.

How EPAs Impact Fair Deal Scheme Approval 

 Every year, the Fair Deal Scheme rejects hundreds of such applications where the applicant lacks the cognitive capacity to make decisions for themselves and their family members aim to arrange for nursing home funding. Isn't that heartbreaking? Do you know the reason? The absence of an Enduring Power of Attorney!

In Irish Law, which is pretty much the same in every other country, assessing or using someone's money and assets is illegal.

Now, senior citizens are highly vulnerable to dementia, paralysis and many other ailments that affect cognitive power. Such health disorders can cause mental instability, memory loss and overall lack of mental capacity to make a conscious decision about their finance, property, personal care or nursing home care.

Now, it often happens that individuals who need Nursing Home Care lack the mental capacity to consent to it, let alone carrying out the application process, et all. In such cases, it is only radical for loved ones and family members to step forward and act on their behalf. 

Family members can place their loved ones under private Nursing Home Care at their own expense. However, the framework of the Fair Deal Scheme is different from private nursing home care.

To get the grant, one has to merge their own income and assets with the scheme. That is the only way to do it. Family members cannot intervene in bringing their assets and income, and it won't be functional either since they would be using the home and the money for living.

If joint signatures are not in place on bank accounts or if a Power of Attorney or Enduring Power of Attorney is not in place, the applicant may have a large sum of money in the bank and property that cannot be accessed.

Conclusion

More and more senior citizens are activating their Endurance Power of Attorney. Without this document in place, property owners may get locked out of their assets for good. So get it done now if you have not passed on the property to your family members.