Factsheet: Lasting Powers of Attorney
What is an attorney?
An attorney is a name for someone who acts on behalf of another person. You can choose your own attorney. They may be a family member, friend, or a professional person. It’s preferable, but not essential, that your attorney has an understanding of your affairs and circumstances.
Is there more than one type of power of attorney?
There are two types:
General Power of Attorney
This allows your attorney to deal with all of your financial affairs. However, if you lose your mental abilities, your attorney must stop acting on your behalf
Enduring Power of Attorney was replaced by Lasting Powers of Attorney -1st October 2007
Lasting Powers of Attorney ( "LPA" ) allows the creator to
appoint someone to make decisions regarding their personal welfare and long term
care and treatment, as well as their finances. The new LPAs will not be valid unless they are registered with The Court of Protection.
For further information please see >> more
How do I appoint an attorney?
A Power of Attorney must be set out in writing. A Lasting Power of Attorney must be in a certain format, as set down in law. We use pre-printed forms to ensure the correct format is used.
Your and your attorney will both need to sign the Lasting Power of Attorney form.
Why would I need to give a Lasting Power of Attorney?
The most common reasons are when you :
- become unwell
- become forgetful
- find dealing with your finances too cumbersome
- do not trust your next of kin and would like someone else to be in control of your finances
What should I consider when choosing an attorney?
- remember that you can still continue to deal with your own affairs even if you have appointed an attorney. If the time comes when you no longer have the ability to carry on, the attorney can step in to act on your behalf
- you can appoint more than one attorney
- you can restrict what your attorney can do for you. Eg you can direct that your attorney deals only with the sale of your house, but not with your bank accounts
- if you lose your mental abilities then your attorney can deal with your affairs at a time when you no longer know what is happening
- your attorney is obliged to inform the Public Guardianship Office (the court) if they believe you can no longer deal with your affairs
- you can cancel the attorney’s appointment any time before you lose your mental capacity
- it is extremely important for you to trust your attorney and their family. If you think your attorney would ever use your money for his/her own purposes than you need to reconsider whom to appoint
What happens if I do not appoint an attorney?
If you lose your mental abilities and no Lasting Power of Attorney is in place your next of kin will need to apply to the Public Guardianship Office for a Receivership Order. The court directs how your assets will be dealt with. Your next of kin are obliged thereafter to obtain the Court’s permission before making any major decisions when dealing with your affairs.
What are the main differences between giving a Lasting Power of Attorney and applying for a Receivership Order?
The main differences are:
- the cost of preparing the Power of Attorney is significantly less
- it is much quicker to complete a Power of Attorney, which is finalised once both parties have signed and dated it. The application for a Receivership Order may take six weeks or more
- your attorney has comparative freedom to make decisions on his/her own without the overall involvement of the courts, unlike under a Receivership Order
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