Power of Attorney FAQ’s

The Lasting Power of Attorney (LPA) Account from Money Carer significantly simplifies the responsibilities of family attorneys by providing a transparent, secure, and efficient way to manage the financial affairs of elderly or vulnerable relatives.

Using Money Carer’s innovative banking and care management platform, Monika, family attorneys gain access to a suite of features designed specifically to promote clarity, accountability, and ease of management, thereby reducing potential family conflicts often arising over financial decision-making.

Transparency and Reduced Family Conflict Financial decisions involving elderly relatives frequently become contentious and can lead to disputes among family members. Money Carer’s LPA Account directly addresses these issues by offering complete transparency. Every transaction and financial decision are meticulously recorded and visible to all authorized family members through Monika, dramatically reducing misunderstandings or accusations of mismanagement or favouritism.

Comprehensive Features and Functionality of Monika:

1. Real-Time Monitoring and Reporting:
   • Monika provides instant, around-the-clock visibility into the account’s financial activities. Family attorneys can monitor spending patterns, check balances, and review transactions in real-time.
2. Automated Record Keeping:
   • Every transaction is automatically recorded and categorized, creating a permanent, easily accessible digital record that streamlines financial reporting and oversight.
3. Budget and Spending Controls:
   • Monika allows family attorneys to set clear budgets and spending limits, ensuring funds are allocated responsibly. This feature minimizes the risk of financial exploitation or unintended overspending.
4. Alerts and Notifications:
   • Attorneys receive immediate notifications about significant transactions, low balances, or unusual spending patterns, enabling prompt interventions and proactive financial management.
5. Secure Document Storage:
   • Important financial documents and receipts can be securely uploaded, stored, and easily retrieved, centralizing crucial information and facilitating smooth audits or reviews.
6. Multi-User Access:
   • Authorised family members and attorneys can simultaneously access Monika, ensuring everyone remains informed, aligned, and collaborative in their approach to managing the elderly relative’s finances.
7. Dedicated Support:
   • Money Carer provides comprehensive support and guidance to family attorneys, helping navigate complexities, ensuring regulatory compliance, and advising on best practices in managing LPA duties.

In summary, the LPA Account from Money Carer, supported by Monika, significantly reduces the emotional and logistical challenges that come with managing a loved one’s finances. It promotes clarity, accountability, and peace of mind, thereby preserving family harmony and ensuring financial decisions always serve the best interests of elderly relatives.

A Power of Attorney (POA) is a legal document in the UK that allows an individual (the “donor”) to appoint one or more trusted people (the “attorney(s)”) to make decisions or act on their behalf, typically in situations when the donor is unable or unwilling to act personally. It is commonly used when someone anticipates needing assistance with financial affairs or healthcare decisions due to illness, disability, or temporary absence.

Types of Power of Attorney in the UK:

1. Ordinary Power of Attorney (OPA)

An Ordinary Power of Attorney grants authority to an attorney to manage financial affairs temporarily, such as when the donor is abroad or temporarily unable to handle their finances.

• Limitations: Automatically ends if the donor loses mental capacity.

2. Lasting Power of Attorney (LPA)

An LPA allows an attorney to make decisions on the donor’s behalf if the donor loses mental capacity. It must be registered with the Office of the Public Guardian (OPG).

There are two distinct types of LPAs:

• LPA for Property and Financial Affairs: Covers managing bank accounts, paying bills, handling investments, and managing property.
• LPA for Health and Welfare: Covers healthcare decisions, daily care routines, living arrangements, medical treatment, and even life-sustaining treatment decisions.

Important Note: LPAs replaced the older Enduring Power of Attorney system (EPA) after 1 October 2007, although EPAs created before this date remain valid.

3. Enduring Power of Attorney (EPA) (Now replaced by LPAs, but still relevant)

An EPA was previously used to give attorneys authority specifically over property and financial affairs, and remains valid if made and signed before 1 October 2007. EPAs must be registered with the OPG if the donor begins to lose mental capacity.

4. General Power of Attorney (GPA) (less commonly used, occasionally interchangeable with Ordinary PoA)

A GPA gives broad authority over financial matters but, like the Ordinary PoA, ceases when the donor loses mental capacity.

Key Abbreviations:

• PoA: Power of Attorney
• OPA: Ordinary Power of Attorney
• LPA: Lasting Power of Attorney
• EPA: Enduring Power of Attorney
• GPA: General Power of Attorney
• OPG: Office of the Public Guardian (responsible for registering LPAs and EPAs in England and Wales)

Registration and Legal Validity:

• Ordinary and General PoA: Do not need to be registered with the OPG.
• LPAs and EPAs: Must be registered with the OPG to be valid for use after mental incapacity begins.

Responsibilities and Duties:

Attorneys appointed under any PoA are legally obliged to act in the donor’s best interests, respecting their wishes and maintaining accurate financial records.

Revocation and Termination:

All types of PoA can generally be revoked by the donor as long as they maintain mental capacity. LPAs and EPAs may also be revoked or terminated by the Court of Protection if there are concerns about the attorney’s actions or suitability.

---

In summary, a Power of Attorney in the UK allows someone else to make important decisions when an individual is unable or unwilling. Different forms exist for temporary use (OPA/GPA), ongoing decisions even after mental incapacity (LPA/EPA), and these must follow specific legal guidelines and registration processes through the OPG.

The most common mistakes made by Property and Financial Affairs attorneys under a Lasting Power of Attorney (LPA) in the UK include:

1. Mixing Personal Finances with the Donor’s

• Attorneys sometimes mistakenly combine their personal finances with the donor’s money. Attorneys must always keep finances clearly separated to avoid confusion or misuse.

2. Misunderstanding the Scope of Authority

• Attorneys might incorrectly assume they have authority over health or personal decisions. Property and Financial Affairs LPAs only cover financial matters.

3. Failure to Keep Accurate Records

• Attorneys are required to maintain detailed financial records, including receipts, bank statements, and transaction logs. Neglecting this responsibility is a common oversight and can lead to legal issues.

4. Not Acting in the Donor’s Best Interests

• Attorneys may inadvertently prioritize their own convenience or benefits, rather than acting solely in the donor’s best interests. All actions must align with what benefits the donor.

5. Failure to Register or Incorrect Registration with the OPG

• The Lasting Power of Attorney must be correctly registered with the Office of the Public Guardian (OPG). Delays, mistakes in the registration process, or attempting to use an unregistered LPA are common pitfalls.

6. Improper Gifts or Unauthorized Transfers

• Attorneys mistakenly believe they can freely gift the donor’s money or property. Gifts must be modest, aligned with past practices (like birthday gifts), or specifically authorized by the OPG or Court of Protection.

7. Selling or Managing Property without Proper Authority

• Selling or transferring property without clear authorization or without considering the donor’s best interests and obtaining proper valuations can lead to significant legal consequences.

8. Failing to Consult the Donor (if possible)

• Even if the donor’s mental capacity is reduced, attorneys should still involve them in decisions as much as practically possible. Ignoring this can be considered neglectful.

9. Failing to Claim Benefits and Financial Assistance

• Attorneys may overlook entitlement to benefits or allowances that could significantly improve the donor’s quality of life.

10. Paying Themselves for Acting as an Attorney without Authorization

• Attorneys cannot pay themselves fees for their role unless specifically allowed by the LPA or approved by the Court of Protection.

---

Consequences of These Mistakes:

• Investigations by the OPG
• Removal as an attorney by the Court of Protection
• Personal liability for financial losses or misconduct
• Criminal charges in extreme cases

It’s essential that attorneys thoroughly understand their responsibilities, seek legal advice when uncertain, and act transparently and responsibly.

We offer a streamlined, secure, and user-friendly Power of Attorney Account through the Monika Platform, in partnership with Zempler Bank. Our goal is to make managing financial affairs straightforward for attorneys and accessible to all.

Free Power of Attorney Account

Attorneys can access our Power of Attorney Account completely free of charge by using the convenient Current Account Switch Service to transfer the donor’s existing everyday bank account to our operational bank account provided by Zempler Bank. This service is widely trusted and is the preferred service choice for hundreds of solicitors and local authorities nationwide, who rely on the Monika Platform’s advanced features and seamless integration.

Benefits of the Free Account Include:

• No monthly fees (because the bank pays us, so we generate income that way so no charge for attorneys)
• Enhanced functionality through Monika Platform’s integration with Zempler Bank
• Comprehensive overview and management of all donor’s bank accounts, savings, and investments in a single, secure place

Paid Account Option (£7.50/month)

Should attorneys choose not to transfer the donor’s everyday bank account via the free Current Account Switch Service, we offer a paid option at £7.50 per month. This option still provides attorneys with extensive oversight and control, enabling them to view and manage all of the donor’s bank, savings, and investment accounts conveniently within the Power of Attorney Account.

Benefits of the Paid Account Option Include:

• Flexibility to maintain the donor’s existing bank account separately
• Comprehensive access to manage all financial accounts from one central location
• Monika Platform functionality

Choose the option that best fits your needs, knowing you’ll have peace of mind and complete financial oversight through the Monika Platform.