Kara Sears
A power of attorney (POA) is a legal document that authorises an individual (the attorney) to act on behalf of another person (the donor or principal) in relation to matters specified within the document. In the UK, there are two main types of powers of attorney: general powers of attorney and lasting powers of attorney (LPA). While general powers of attorney are temporary, lasting powers of attorney are indefinite and remain in effect even after the donor becomes incapacitated. A power of attorney can cover a range of matters, including financial, property, health, and business affairs. It is important to understand the laws and requirements specific to the jurisdiction when creating a power of attorney.
| Characteristics | Values |
|---|---|
| Definition | A power of attorney (POA) or letter of attorney is a written authorization to represent or act on another's behalf. |
| Types | General power of attorney and lasting power of attorney (LPA) |
| General power of attorney validity | Temporary (12 months) |
| LPA validity | Indefinite |
| Who can be an attorney? | Anyone, often a spouse, children, family members or close friends |
| Who can set up a POA? | Anyone over 18 with mental capacity |
| Who is the POA valid for? | Anyone with mental capacity |
| What does a POA cover? | Finances, property, health and welfare, and business matters |
| What is required for a POA? | Signed and dated by the principal; may also need to be witnessed, notarized, or both |
| Who can help with a POA? | The Office of the Public Guardian (OPG) |
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What You'll Learn
General vs. Lasting Power of Attorney
A Lasting Power of Attorney LPA is a legal document that lets you (the 'donor') appoint one or more people (known as 'attorneys') to help you make decisions or make decisions on your behalf. This gives you more control over what happens to you if you have an accident or an illness and cannot make your own decisions (you 'lack mental capacity').
There are two types of LPA: one for making financial decisions, and another for making health and care decisions. You can set up LPAs for both types of decisions. An LPA for health and care decisions can only be used if you lose mental capacity. An LPA for financial decisions can also be used, with your permission, while you still have mental capacity—but you need to choose this option when setting it up.
A General Power of Attorney is a way to allow someone to make decisions on your behalf. A common usage is to sign a financial document or make financial decisions. As part of a PoA, the attorney can handle matters that relate to property, financial assets, and investments. The donor can decide whether to give the attorney full or partial control over their finances and can also set a date for when the Power of Attorney should end.
One of the key differences between a Lasting Power of Attorney and a General Power of Attorney is that an Attorney under an LPA can only begin acting once the LPA has been registered with the Office of the Public Guardian, which can take several weeks or up to 20 weeks. A General Power of Attorney, on the other hand, does not need to be registered and can be used immediately.
Another difference is that a Lasting Power of Attorney can continue to be used if the donor loses mental capacity in the future, whereas a General Power of Attorney becomes ineffective if the donor loses mental capacity.
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What a Power of Attorney can cover
A Power of Attorney (PoA) is a legal document that authorises an individual (the attorney) to act on behalf of another person (the donor) in relation to matters delegated within the document. The donor may be referred to as the principal or grantor. The attorney may be given broad or limited authority to make decisions about the donor's finances, property, business matters or personal care.
There are two main types of PoA: general and lasting. A general power of attorney is temporary and valid for 12 months, although it can be for a shorter period and can be revoked at any time by the donor. A general power of attorney will only be valid for as long as the donor has mental capacity and will be revoked if the donor loses capacity. A lasting power of attorney (LPA) is indefinite and allows the attorney to make decisions on behalf of the donor when they are no longer able to make those decisions themselves.
A PoA can be set up at any time, but a donor must have mental capacity when they make it. A donor can appoint one or more attorneys, who are usually the donor's spouse, partner, sibling, friend or extended family member.
A PoA can cover a wide range of matters, including:
- Finances: managing bank accounts, paying bills, collecting benefits or a pension, and selling property.
- Property: dealing with the donor's property and finances, including selling their home.
- Health and welfare: making decisions about the donor's health and care, including medication, who they see and where they live. The donor can give their attorney the ability to make decisions about life-sustaining treatment.
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Who can be an Attorney
A power of attorney is a legal document that authorises an individual (the attorney) to act on behalf of another person (the donor) in relation to matters delegated within the document. A common misconception is that the term "attorney" means "lawyer". However, this is not the case in the context of power of attorney. While an attorney may be a solicitor, the role is not confined to one profession.
In the UK, a donor can choose to appoint anyone they like as their attorney. Usually, the donor selects someone they trust, such as a close relative, friend, or solicitor. Donors often choose their spouse, children, or other family members to act as their attorney. The donor decides who to appoint as their attorney and can cancel the arrangement at any time.
To be valid, a power of attorney must be signed and dated by the donor. Some jurisdictions also require that a power of attorney be witnessed, notarised, or both. Even when not required, having the document reviewed and signed (and often stamped) by a notary public may increase the likelihood of withstanding a legal challenge.
There are two main types of powers of attorney: general and lasting. A general power of attorney is valid for 12 months and can be revoked at any time by the donor. It will only be valid for as long as the donor has mental capacity and will automatically be revoked if the donor loses capacity. A lasting power of attorney lasts indefinitely and can continue even after the donor has become unable to manage their affairs, whether due to temporary or permanent incapacity, illness, disability, or accident.
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When a Power of Attorney comes into effect
A power of attorney (POA) is a written authorization allowing an individual, or attorney, to act on another person's behalf in private affairs, business, or some other legal matter. In the UK, there are two main types of powers of attorney: general powers of attorney and lasting powers of attorney (LPA).
A general power of attorney is a temporary measure that can be used for short-term or specific purposes, such as when the donor is travelling abroad or is unable to manage their financial affairs due to temporary illness or incapacity. This type of power of attorney is only valid for 12 months, or a shorter time period if specified in the document, and can be revoked at any time by the donor. It will also be automatically revoked if the donor loses mental capacity.
A lasting power of attorney, on the other hand, is a more permanent measure that allows the attorney to make decisions on the donor's behalf if the donor loses mental capacity due to illness, disability, or accident. This type of power of attorney can be used as soon as it is registered, with the donor's permission, and is governed by the Mental Capacity Act 2005. It is important to note that a power of attorney can only be created when the donor has mental capacity and fully understands the implications of the arrangement.
To create a power of attorney, the donor must choose an attorney, which can be a trusted family member, friend, or professional, and fill in the necessary forms. The document must be signed and dated by the donor, and in some jurisdictions, it may also need to be witnessed or notarized. Once the power of attorney is registered and validated, the attorney can begin acting on the donor's behalf, making decisions according to the donor's best interests and wishes.
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How to set up a Power of Attorney
A power of attorney (PoA) or letter of attorney is a legal document that authorises an individual (the attorney) to act on behalf of another person (the donor) in relation to matters delegated within the document. A power of attorney may relate to one’s personal affairs and cover all decisions related to finance, property, and healthcare.
There are two main types of powers of attorney: general powers of attorney and lasting powers of attorney. General powers of attorney are temporary and valid for 12 months, whereas lasting powers of attorney last indefinitely. Lasting powers of attorney can cover property and financial affairs, as well as health and personal welfare.
To set up a power of attorney in the UK, you must be 18 or over and have mental capacity when you make your LPA. You can choose your attorney (you can have more than one) and fill in the forms to appoint them. In England and Wales, you can create an LPA online, which will guide you through the process and help you answer each question. You can also make an LPA yourself or get a solicitor to handle the application. In Scotland, a solicitor or UK medical doctor must confirm that you understand the nature and impact of making an LPA. Once you have completed the forms, you must register your LPA with the Office of the Public Guardian, which currently costs £82. It is important to note that a power of attorney can be rejected if there are mistakes in the application, and it can be cancelled at any time.
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Frequently asked questions
A power of attorney (POA) is a legal document that authorises an individual (the attorney) to act on behalf of another person (the donor or principal) in relation to matters delegated within the document.
There are two main types of powers of attorney: general powers of attorney and lasting powers of attorney (LPA). General powers of attorney are temporary, whereas lasting powers of attorney last indefinitely.
To create a power of attorney, the donor must be 18 or over and have mental capacity. The document must be signed and dated by the donor, and in some cases, it may need to be witnessed, notarised, or both.
