Power of Attorney

It is an unfortunate fact that as some people grow older the management of their financial affairs can become increasingly difficult. In situations where they are frail, ill or too confused to handle their own financial affairs, it may be necessary for an individual to grant a friend or a relative 'Power of Attorney' to act on their behalf.

What is a Power Attorney?

A Power of Attorney is a legal document that gives another person or persons the right to act on your behalf for a limited time or for an indefinite period.

From October 2007, the standard document for appointing attorneys is known as a Lasting Power of Attorney (LPA). An LPA must be registered with either the Court of Protection or the Office of the Public Guardian to give any authority. There are two types of LPA:

1. Property and Affairs LPA A registered Property and Affairs LPA allows the person who is granted the LPA (the ‘attorney’) to make decisions affecting the person the LPA covers’ (the donor) financial circumstances, including pension arrangements.
2. Personal Welfare LPA A registered Personal Welfare LPA allows the attorney to make decisions affecting the donor’s welfare.  This is designed for authorizing medical treatment and for determining where the donor will live in the event that significant levels of care are required.
An LPA may give full or restricted powers, (e.g. the power to operate a bank account, but not to sell the donor's home).

Before October 2007 the standard document for appointing attorneys was known as an Enduring Power of Attorney (EPA). An individual appointed as an attorney through an EPA may use that power immediately, or the person granting the EPA can specify that the EPA is only to become effective should they become unable to manage their affairs in the future. The EPA may give full or restricted powers, (e.g. the power to operate a bank account, but not to sell the donor's home). If an EPA was completed before October 2007 it can still be used and may still be registered with either the Court of Protection or the Office of the Public Guardian.