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The LPA forms need to be signed by someone, apart from your chosen attorney, to state that you have the mental capacity to make an LPA. The forms also need to be witnessed. You then need to register each LPA with the Office of the Public Guardian. Either you or your attorney can do this.
In general, a person with dementia can sign a power of attorney designation if they have the capacity to understand what the document is, what it does, and what they are approving. Most seniors living with early stage dementia are able to make this designation.
You can appoint a medical treatment decision maker this allows a person with dementia to appoint another person to act on their behalf to make decisions about medical treatment. you can create an advance care directive a document that expresses a person's wishes about medical treatment.
A Power of Attorney gives someone else the legal power to make decisions on behalf of someone who is no longer able. If you are concerned about a relative reaching this point, then first of all they need to be diagnosed with Dementia by a Doctor.
The person living with dementia maintains the right to make his or her own decisions as long as he or she has legal capacity. Power of attorney does not give the agent the authority to override the principal's decision-making until the person with dementia no longer has legal capacity.