Powers of Attorney

A power of attorney is a document in which you state that you give someone else (usually a relative or friend) the authority to make certain decisions and act on your behalf. The person to whom you give these powers is called an “agent” or “attorney-in-fact.” You are called the “principal.” Executing a power of attorney does not mean that you can no longer make decisions; it just means that another person can act for you also. For example, you may be hospitalized for a brief period of time and need someone to deposit your cheques in the bank or pay your bills. As long as you are capable of making decisions, the other person must follow your directions. You are simply sharing your power with someone else. You can revoke the agent’s authority under the power of attorney at any time if you become dissatisfied with what they are doing.

What is a Lasting Power of Attorney?

A lasting power of attorney is appropriate for when a person is no longer capable of handling or managing their own affairs as opposed to a general power which is often for a specific purpose. If you are unable to look after your own affairs and you do not have an LPA, the Court of Protection will appoint a Deputy to manage your affairs for you. There will be significant legal fees to pay and the Deputy may not be aware of your personal circumstances. This could apply to anyone, at any age, by reason of illness, disability or mental impairment who may no longer be able to deal with even simple matters like handling a bank or building society account or transacting a house sale.

There are two types of lasting powers of attorney: the property and Affairs LPA and the Personal Welfare LPA. The Property and Affairs LPA allows you to choose a person you trust to make decisions about how to spend your money and the way your property and affairs are managed. Once registered, and unless you have put a restriction on it, this type of LPA can be used by your attorney(s) straight away. The Personal Welfare LPA allows you to choose someone you trust to make decisions on your behalf relating to your personal healthcare and welfare including decisions to give or refuse consent for treatment on your behalf and deciding where you live. These decisions can only be taken on your behalf when the LPA has been registered and you lack the capacity to make the necessary decision for yourself. An LPA can be made by anyone aged 18 or over who has the mental capacity but can only be used once it has been registered with the Office of the Public Guardian (OPG).