What Is A Power of Attorney

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.