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What Is A Power of Attorney

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What Is A Power of Attorney?

Introduction

A Power of Attorney (POA) is a legal document that grants an individual, known as the 'attorney' or 'agent', the authority to make decisions on behalf of another person, called the 'donor' or 'principal'. In the United Kingdom, this delegated authority can cover a range of matters including financial affairs, property transactions, and health and welfare decisions.

Types of Power of Attorney in the UK

There are several types of Power of Attorney in the UK:

  • Ordinary Power of Attorney: This type is usually temporary and only valid while the donor still has mental capacity. It is often used for specific tasks such as managing finances for a set period.
  • Lasting Power of Attorney (LPA): This is more comprehensive and can remain in effect even if the donor loses mental capacity. It is divided into two categories:
    • Property and Financial Affairs LPA: Covers financial transactions and property matters.
    • Health and Welfare LPA: Covers personal healthcare and welfare decisions, such as medical care and living arrangements.

Creating and Registering a Power of Attorney

In the UK, creating an LPA involves completing specific forms, which can be obtained from the Office of the Public Guardian (OPG) or online through the official UK government website. The forms require details about the donor, the appointed attorney(s), and their specific powers. Once completed, the forms must be signed, witnessed, and registered with the OPG to become legally effective. Registration can take several weeks and involves a fee.

Responsibilities and Duties of the Attorney

The appointed attorney has a legal duty to act in the donor's best interest, adhering to the principles set out in the Mental Capacity Act 2005. They must keep accurate records, avoid conflicts of interest, and consult the donor on decisions whenever possible. Failure to comply with these responsibilities can result in legal consequences and removal from their position.

Revoking a Power of Attorney

Revocation of a Power of Attorney can occur if the donor decides to withdraw the authority granted, provided they still have mental capacity. This can be done by creating a 'deed of revocation' and informing all relevant parties, including the OPG if the PoA is registered. Additionally, an LPA automatically ends if the donor or attorney passes away, the attorney loses mental capacity, or if they decide to stop acting as an attorney.

Conclusion

A Power of Attorney is an essential legal tool in the UK for managing affairs when one cannot do so themselves. Understanding its types, implementation process, and the responsibilities it entails can help individuals make informed decisions about planning for the future.

Frequently Asked Questions

What is a Power of Attorney?

A Power of Attorney is a legal document that allows one person (the 'donor') to grant another person (the 'attorney') the authority to make decisions on their behalf.

Who can create a Power of Attorney?

Any adult who has the mental capacity to understand the nature and effect of the document can create a Power of Attorney.

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

There are two main types: Ordinary Power of Attorney and Lasting Power of Attorney (LPA). LPA is further divided into Health and Welfare LPAs and Property and Financial Affairs LPAs.

What is an Ordinary Power of Attorney?

An Ordinary Power of Attorney covers decisions about your financial affairs and is only valid while you have mental capacity.

What is a Lasting Power of Attorney?

A Lasting Power of Attorney (LPA) is a legal document that remains in effect if you lose mental capacity, and it can cover decisions about health, welfare, property, and financial affairs.

How do I make a Lasting Power of Attorney (LPA)?

You can make an LPA by completing the appropriate forms, which are available from the UK Government website, and registering the LPA with the Office of the Public Guardian (OPG).

What is the role of the Office of the Public Guardian (OPG)?

The OPG registers LPAs, oversees the actions of attorneys, and provides support for managing and using LPAs.

Who can be appointed as an attorney?

You can appoint anyone over the age of 18 whom you trust, including family members, friends, or a professional such as a solicitor.

What responsibilities does an attorney have?

An attorney must act in your best interests, make decisions according to your known wishes, and keep records of their actions.

Can more than one person be appointed as an attorney?

Yes, you can appoint multiple attorneys and specify how they should make decisions, either 'jointly' (all must agree) or 'jointly and severally' (can act together or independently).

Can I cancel a Power of Attorney?

Yes, as long as you have mental capacity, you can revoke a Power of Attorney at any time by notifying the attorney(s) and the OPG if it is a registered LPA.

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 in place, a court may appoint a deputy to make decisions on your behalf, which can be a time-consuming and costly process.

Is a solicitor required to create a Power of Attorney?

No, a solicitor is not required, but you may choose to seek legal advice to ensure that the document meets your needs and is correctly completed.

How much does it cost to register a Lasting Power of Attorney?

As of 2023, the cost to register each LPA with the OPG is £82. Fee exemptions or reductions may be available based on income.

How long does it take to register a Lasting Power of Attorney?

The OPG typically takes up to 10 weeks to register an LPA, provided there are no mistakes in the application.

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