July 18, 2024
A Power of Attorney (POA) is a legal Document that can cover decisions about your financial affairs for a temporary period or a specific transaction. A Power of Attorney (POA) can be put in place if you need assistance for a temporary period.
You must have full mental capacity to enter into a Power of Attorney.
A Lasting Power of Attorney (LPA) is also a legal instrument that can cover decisions about your financial affairs, and/or your health and welfare. Similarly to that of a Power of Attorney, you must have full mental capacity to enter into a Lasting Power of Attorney.
A LPA, however, comes into effect once you lose capacity. A LPA shall remain in place unless revoked by you during a period when you still have the capacity or by the Court should there be found to be an abuse of the role of your Attorney.
The pandemic has highlighted the importance and need for a Power of Attorney for vulnerable individuals to ensure their protection and welfare.
Health & Welfare
Your attorney can make decisions about your welfare for example:
When setting up the LPA, you are able to list restrictions on what your Attorney can and cannot do concerning your welfare.
Your Attorney cannot deal with any of your financial affairs, including the sale or purchase of property on your behalf, unless they have Power of Attorney over your Property and Financial Affairs.
Your Attorney can make decisions as a property and financial affairs attorney, they are responsible for helping you to manage things like:
You are able to include certain provisions to ensure your Attorneys carry out duties in a certain way with restrictions and guidance on how you want decisions to be made when setting up the Power of Attorney.
Your Attorney is obliged by the Court and must manage your finances in your best interests.
Your Attorney must keep their finances separate from your own unless you’ve got a joint bank account or own a home together.
Your Attorney must keep accounts of your assets, income, spending and outgoings. The Office of the Public Guardian (OPG) and the Court of Protection can ask to check these.
If an attorney is found to be abusing or misusing your money they may be prosecuted.
Your Attorney can buy gifts or give monetary gifts on your behalf, including donations to charities. They must only make gifts:
Your Attorney can buy or sell property on your behalf if it’s in your best interests.
In some situations, your Attorney must contact the Office of Public Guardian if:
Any gift or transfer of real property, the whole or part share is almost certainly outside of your Attorney’s powers. To make such a gift they are likely to have to apply to the Court of Protection for permission.
You are of course able to download an application form online. However, we would suggest that you obtain professional advice from our team as this can prevent problems later on, especially if you’re unsure of the process or your affairs are complex.
