Introduction and types of POA

Accidents happen and illnesses may come on unexpectedly. POAs can protect your property, finances, and medical care interests should you fall victim to an unfortunate event. Without one your desires may not be followed nor your assets protected. These documents help to ensure loved ones aren’t faced with emotional, costly, and time-consuming delays in the event something unfavourable occurs.

 

Attorney

This is any person formally appointed under a power of attorney to act on behalf and in the name of another person (typically referred to as the donor or principal).

 

Power of Attorney

A Power of Attorney is a Legal Document where one person permits their affairs to be managed by another person. The powers they can hand over include powers of transacting in matters relating to a property, banking, legal and judicial proceedings, tax payments etc. The powers can only be transferred for specific reasons some include when someone is out of the country or cannot perform the tasks themselves for any particular reason. 

 

General Power of Attorney

A general power of attorney is a basic document that gives the attorney the power to deal with the donor’s financial affairs. It can be as wide-reaching or as limited as the donor wishes.

 

Special or Limited Power of Attorney (LPOA)

This is an authorization that permits an attorney to perform specific functions on behalf of the account owner. Before signing an LPOA, the client should be aware of the specific functions they have delegated.

 

Lasting Power of Attorney (LPA)

A lasting power of attorney gives your attorney/s control over what happens to you if you have an accident or an illness and cannot make your own decisions (or lack mental capacity) such as if you have an accident or begin to suffer from Parkinson’s disease, Alzheimer’s or dementia. You must be 18 years or above and have mental capacity (ability to make own decisions) when making a Lasting Power of Attorney, you do not need to live in the UK or be a British citizen. A Lasting Power of Attorney (LPOA) can be focussed on Health and Welfare and/or Property and financial affairs.

 

Health and Welfare Lasting Power of Attorney

A Lasting Power of Attorney (LPA) gives an attorney the power to make decisions about things like:

• Your daily routine, for Example washing, eating, dressing;
• Medical care;
• Life-sustaining treatment; and
• Moving into a care home.

(It can only be used when you are unable to make your own decisions)

Refer to the following link for LPA for health and care decisions

LP1H Lasting power of attorney - Health and care decisions (publishing.service.gov.uk)

 

Property and Financial Affairs Lasting Power of Attorney

This authorisation gives you attorney the power to make decisions about money and property for you, for example:

• managing a bank or building society account;
• paying bills;
• collecting benefits or a pension; or
• selling your home.

 

Make a lasting power of attorney:

You can make a lasting power of attorney (LPA) online or from the Office of the Public Guardian, PO Box 16185, Birmingham, B2 2WH, by phone on 0300 456 0300. You can get someone else to use the online service or fill in the paper forms for you, for example, a family member, friend or solicitor. Refer to the following link to apply for Lasting Power of Attorney (LPOA).

 

Execution of a POA

A Power of Attorney is a legal document made by the donor that gives another person (attorney) the power to act on their behalf. Power of Attorney is executed by the attorney on behalf of a person (donor). While creating a power of attorney it should be sealed and signed in the presence of the donor of the power. Two other persons should be present at the time of power of attorney to act as witnesses.