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If you would like to appoint someone to act on your behalf, a power of attorney can be created, provided you have the necessary mental capacity.
A power of attorney is a legal document which gives a person(s) the authority to act on behalf of another (donor).
The types of power of attorney
- General/ ordinary power of attorney – this type of power is governed by the Powers of Attorney Act 1971 and is used to authorise the management of the donor’s financial or property affairs on a short-term basis, usually a year or for the period stipulated. It will no longer be effective if the donor loses mental capacity
- Lasting powers of attorney (LPA) – this type of power was introduced by the Mental Capacity Act 2005, effective from 1st October 2007 onwards.
There are two types of LPA, “property and financial affairs” and “health and welfare”. They must be registered with the Office of the Public Guardian before they are used.
It is important to note that an LPA for health and welfare is only effective when the donor is unable to make decisions about their health, but the property and financial document can be used for the convenience provided the donor gives consent.
What is an enduring power of attorney (EPA)?
An EPA authorises an attorney to manage the donor’s property and financial affairs. However, since the repeal of the Enduring Powers of Attorney Act 1985 on 1st October 2007, the creation of such power is no longer possible.
Any EPAs made before 1st October 2007 are still legally valid. However, anything made after this date is now executed as an LPA.
It is possible for a person to have an EPA for property and financial affairs and LPA for health and welfare.
Do I need a power of attorney if I have a will?
An LPA assists you if you lack mental capacity during your lifetime and a Will deals with the distribution of your estate on death, and therefore the two are independent of each other, and both are equally as important, so we would recommend having both.