Powers of Attorney

A General Power of Attorney is a legal document but there is no registration required. It allows one person (the attorney) the authority to act on behalf of another person (the donor) in financial or legal matters. This type is commonly used for short term needs such as managing affairs while the donor is abroad, the donor is ill, in hospital or to delegate authority to a professional such as a solicitor or accountant. This document allows the attorney to handle tasks when the donor is away on holiday such as signing documents, managing investments or selling a property.

A General Power of Attorney is temporary, and it does not give authority to make decisions about health, medical care or long-term welfare, and if the donor loses mental capacity, or is incapacitated it becomes invalid.

A Lasting Power of Attorney is a legal document that allows a person (the donor) to appoint one or more people known as attorney/s to make decisions on their behalf even if they lose mental capacity. This type of Power of Attorney must be registered with the Office of the Public Guardian (OPG) before it can be used.

There are two types of LPAs each cover a different aspect of a person’s life, Property and Financial affairs cover decisions about finances, property and bills and can be used as soon as it is registered with the donor’s permission, whereas Health and Welfare covers decisions about healthcare, living arrangements and medical treatment and can only be used once the donor lacks capacity.

Planning for the future is essential; an unexpected illness or accident can leave individuals unable to make vital decisions. An LPA ensures that someone you trust can legally act in the donor’s best interests. While LPAs are often associated with older people setting up an LPA at any age is wise unforeseen circumstances can happen at any time.

The benefits of setting up an LPA are that it avoids Social Services taking over the care as a last resort via an application to the Court of Protection to become a Court Appointed Deputy which can be costly and also time consuming.

It provides peace of mind for families and individuals ensuring someone they trust can take over their affairs as and when they need to, and it ensures the smooth running of day-to-day actives and critical decisions.

Understanding the difference between a General and Lasting Power of Attorney is critical to be able to plan for the future. While General Power of Attorney suits short-term or immediate needs, a Lasting Power of Attorney offer lasting protection, especially for health and financial decisions in the event of lost capacity.

Choose your attorney’s wisely, select individuals you trust as they will have significant control over your financial affairs and act quickly to assist you.

Specify instructions and preferences, you can outline specific instructions or preferences in the Lasting Power of Attorney(s) in making decisions.

Attorneys are expected to keep accurate records of financial transactions and act in the best interests of the donor.

Lasting Powers of Attorney should be reviewed regularly this is because circumstances can change so it is advisable to review this periodically to ensure that it still reflects your wishes. You can revoke the appointment of attorney’s you no longer wish to act for you.

Speaking with a legal professional can help to ensure that the right type of Power of Attorney is chosen, drafted and registered according to the needs of the individual.