Everything you need to know about Power of Attorney
There’s sometimes confusion about what a Power of Attorney is and what they do, so we’ve put together a handy guide to help you understand everything you need to know.
What is a Power of Attorney?
Giving someone power of attorney essentially means you’re giving someone you trust the power to be in charge of your affairs.
If you’re aged 18 or over, and have the mental capacity to make decisions for your welfare and finances, you can arrange for someone else to make these decisions for you in the future.
The person who is given power of attorney is known as the ‘attorney’ and you are known as the ‘donor’. Your attorney must be over the age of 18.
You can appoint one attorney, or more than one. If you appoint more than one, they must act either ‘jointly’, which means they must always make decisions together, or ‘jointly and severally’, which means they make some decisions together and some separately.
Types of power of attorneys
There are two types of LPAs – a health and welfare LPA, and a property and financial affairs LPA. A health and welfare LPA allows your attorney to make decisions about your daily routines, medical treatment and care. It can only be used if you can’t make your own decisions.
A property and financial affairs LPA allows your attorney to make decisions about your money, bills, and property. Once registered with the Office of the Public Guardian, this type of LPA can either be held until needed, or used straight away.
Why would I need an attorney?
Attorneys are often appointed in preparation for a future potential lack of mental capacity. In simple terms, if you were to get dementia in the future and therefore unable to make your own decisions, your attorney would act on your behalf.
They are not allowed to spend your money or change your will without court approval, but they will be in charge of other decisions set out in their appointment. You should only choose an attorney who you trust, and who you are confident will act in your best interests.
How to apply for power of attorney
It’s advised to set up both types of LPA at the same time. Many people choose to do this when writing their will, with the help of the same solicitor.
You must register your power of attorney before it can come into force. You can do this online. You can cancel your LPA at any time, as long as you have the mental capacity to do so.
Cancelling an EPA is different. If they have not been registered, you’ll need to sign a formal document called a Deed of Revocation. If they have been registered, you’ll need permission from the Court of Protection to cancel it.