However, many people delay setting one up, often assuming they have more time than they actually do. In circumstances when a person is diagnosed with dementia or a similar cognitive condition, families may wonder: is it too late to create a POA?

The good news is that early-stage dementia does not automatically mean a person is incapable of granting a POA. Capacity is a complex issue, and a diagnosis alone does not determine whether someone can make legal decisions. However, once dementia has progressed to an advanced stage, more complex legal steps are required.

Can someone with early-stage dementia still create a POA?

If the individual still has the mental capacity to understand what a POA is, what it does, and who they are appointing as their attorney, they can still legally grant one. The ability to execute a POA can continue for some time after a dementia diagnosis, as long as the person remains aware of their decisions and their consequences.

However, it is important to act quickly. Since dementia is a progressive condition, delaying a POA could mean losing the opportunity to set one up entirely.

Does it matter whether it’s a financial or health POA?

A POA can cover financial matters, such as managing bank accounts, property, and bills, or health and welfare decisions, such as medical treatment and care preferences. In both cases, the person must demonstrate sufficient understanding to make an informed decision at the time of signing. If a solicitor determines they do not have capacity, a POA cannot be granted.

What medical tests or evidence are required?

To ensure a person is mentally capable of creating a POA, a solicitor will carry out an initial assessment. This typically involves asking simple questions such as date of birth, address, and details of family members. The solicitor will also explain what a Power of Attorney is and check whether the individual understands its purpose and implications. Finally, they will ensure that the decision is being made voluntarily and without coercion.

If there are any doubts about the person's capacity, a solicitor may request a medical assessment from a doctor or specialist before proceeding. This ensures that the POA is legally valid and prevents disputes later on.

What if the disease has progressed too far?

If dementia has advanced to the point where the person can no longer understand the POA process, they will not be able to grant one. In this case, next of kin will need to apply for a court order to gain legal authority over their affairs.

In England and Wales, this requires a Deputyship Order from the Court of Protection. In Scotland, the family must apply for a Guardianship Order through the Sheriff Court.

How long does it take to put a POA in place?

A Power of Attorney can be registered within a few weeks, allowing the chosen attorney to act on behalf of the individual quickly. By contrast, Guardianship Orders take several months (sometimes much longer!), as they require a more complex legal process, including psychiatric and social work assessments before court approval.

This delay can create significant problems, especially if urgent decisions are needed about finances or care. Setting up a POA in advance saves time, hassle and stress - for both the individual and their family.

How can family members ensure the process is fair and legal?

When supporting a relative with dementia in setting up a POA, family members must ensure everything is done legally and transparently. Concerns about coercion or undue influence can arise, particularly when family relationships are complicated.

To prevent disputes, a solicitor will meet with the individual alone, without family present, to confirm that their decision is voluntary. The solicitor will ask questions about family structure, such as how many siblings they have and who they wish to appoint as their attorney. Should an attorney be chosen outside the family, the solicitor will ask why and ensure the decision is made freely. If coercion is suspected, the solicitor may refuse to proceed or request further investigation.

This legal protection ensures that the individual’s wishes are respected, while preventing potential abuse or manipulation.

A Power of Attorney is an essential legal safeguard, much like an insurance policy - you hope never to need it, but having one in place can prevent significant difficulties in the future. The key message is don’t wait until it’s too late; if you or a loved one have been diagnosed with dementia, seek legal advice as soon as possible to make sure the right protections are in place.