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What is a Power of Attorney?

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What is a Power of Attorney?

What is a Power of Attorney?

A Power of Attorney (POA) is a crucial legal document that allows an individual, referred to as the 'donor', to appoint one or more people, known as 'attorneys', to manage their affairs if they become unable to do so. This can include decisions related to finances, property, and personal welfare. In the United Kingdom, a Power of Attorney is particularly important for ensuring that someone trusted can make decisions in your best interests should you become incapacitated.

Types of Power of Attorney

In the UK, there are primarily two types of Power of Attorney: Ordinary Power of Attorney and Lasting Power of Attorney.

  • Ordinary Power of Attorney: This is usually temporary and is only valid while the donor has mental capacity. It is often used if the donor needs help with financial affairs for a specific period, such as during an extended trip abroad.
  • Lasting Power of Attorney (LPA): This type can be further divided into two categories:
    • Property and Financial Affairs LPA: Allows the attorney to manage financial matters, such as selling property, paying bills, and handling bank accounts.
    • Health and Welfare LPA: Enables the attorney to make decisions related to healthcare, living arrangements, and general welfare.

How to Set Up a Power of Attorney

Setting up a Power of Attorney in the UK involves several steps. The first step is to choose your attorney(s) carefully, ensuring they are trustworthy and capable of handling the responsibilities. The necessary forms must be filled out and signed by both the donor and the attorneys, and the document must be registered with the Office of the Public Guardian (OPG).

For an LPA, the registration process can take up to 10 weeks, and it is crucial to ensure that all details are correctly filled out to avoid delays. It is also advisable to seek legal advice when setting up a Power of Attorney to ensure that all legal requirements are met.

Importance of a Power of Attorney

Having a Power of Attorney in place is essential for anyone who wishes to have a trusted individual manage their affairs if they are incapacitated. It offers peace of mind knowing that your financial, property, and health-related decisions are in safe hands. Additionally, it helps to avoid court-appointed deputies who may not be familiar with the donor's wishes and preferences.

Without a Power of Attorney, loved ones may face lengthy and costly legal processes to gain control over the donor's affairs, making it an essential legal safeguard for anyone concerned about future incapacity.

Frequently Asked Questions

What is a Power of Attorney?

A Power of Attorney is a legal document that allows you to appoint someone else to act on your behalf in legal, financial, or health matters.

Who can be appointed as an attorney under a Power of Attorney?

You can appoint anyone you trust, such as a family member, friend, or professional, to be your attorney.

What types of Power of Attorney are there in the UK?

In the UK, there are two main types: 1) Ordinary Power of Attorney and 2) Lasting Power of Attorney (LPA), which includes LPAs for financial decisions and health and care decisions.

What is the difference between an Ordinary Power of Attorney and a Lasting Power of Attorney?

An Ordinary Power of Attorney is valid only while you have mental capacity and covers financial affairs. A Lasting Power of Attorney remains valid even if you lose mental capacity and can cover either health and welfare or property and financial affairs.

How do I create a Lasting Power of Attorney?

To create an LPA, you must complete specific forms provided by the Office of the Public Guardian, get these signed by witnesses, and then register the document with the Office of the Public Guardian.

What is the role of the Office of the Public Guardian?

The Office of the Public Guardian (OPG) registers LPAs, oversees attorneys, and investigates any complaints about their actions.

Do I need a solicitor to create a Power of Attorney?

While it's not mandatory to use a solicitor, it can be helpful to ensure the document is correctly completed and properly reflects your wishes.

Can a Power of Attorney be revoked?

Yes, you can revoke a Power of Attorney at any time as long as you have mental capacity. You need to notify your attorney and the Office of the Public Guardian in writing.

What happens if I don’t have a Power of Attorney and lose mental capacity?

If you lose mental capacity without a Power of Attorney, your family or carers will need to apply to the Court of Protection to get a deputy appointed to make decisions on your behalf.

Can an attorney make decisions about my health and welfare?

Yes, but only if you have granted them a Lasting Power of Attorney specifically for health and welfare decisions.

What decisions can an attorney make under a financial Lasting Power of Attorney?

An attorney can manage your bank accounts, pay your bills, collect any benefits or pension, and make financial investments on your behalf.

Is there a fee to register a Lasting Power of Attorney?

Yes, there is a fee to register an LPA with the Office of the Public Guardian. As of 2023, the fee is £82 per LPA.

Can multiple people be appointed as attorneys?

Yes, you can appoint more than one person as your attorney. You can specify if they must act jointly or independently.

Does a Power of Attorney need to be witnessed?

Yes, the document must be signed by a witness to confirm that it was signed voluntarily and you were of sound mind when signing it.

What should I consider when choosing an attorney?

Consider the trustworthiness, reliability, and willingness of the person to act in your best interests. It's also important they understand the responsibilities involved.

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