What is a Power of Attorney?

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.

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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.