InvestmentsJun 4 2019

Understanding the different types of power of attorney

  • List the three main types of power of attorney and how they differ.
  • Describe how the system works in Scotland and Northern Ireland.
  • Identify what a trustee POA is and what to do if no POA is in place.
  • List the three main types of power of attorney and how they differ.
  • Describe how the system works in Scotland and Northern Ireland.
  • Identify what a trustee POA is and what to do if no POA is in place.
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Understanding the different types of power of attorney

A donor can appoint more than one attorney and they should choose whether they want their attorneys to act jointly only, or have the option to act together or separately - known as jointly and severally.

When making a lasting POA, a donor can also nominate replacement attorneys, to replace an attorney(s) if at some point they can no longer act.

A certificate provider is an impartial person who confirms the donor understands what they are doing and is not being pressured to make a lasting POA.

They must be a friend or colleague who the donor has known well for at least two years, or a lawyer/similar professional with the skills to judge they understand and are not being unduly pressured.

Registration

A lasting POA is slightly different to an enduring POA (see below) in that it has to be registered with the OPG from the outset or it will not be valid.

Although this may mean extra administration at outset, and a court registration fee, it makes the process more consistent and straightforward in the event the donor loses mental capacity compared to other types of POA.

Changing or ending a lasting POA

There is a specific section in the form that allows any restrictions on the attorney’s powers to be set out.

For example, the donor can choose to allow their attorney(s) to act as soon as the lasting POA is registered, or restrict its use until they have lost capacity.

A lasting POA can be changed by the donor if they still have mental capacity by contacting the OPG and providing certain documentation. If the donor wanted to add another attorney though, they would need to end the lasting POA and make a new one, again while they still had capacity.

To end a lasting POA, the donor must send the original document to the OPG along with a deed of revocation.

A lasting POA may automatically end if an attorney dies, loses mental capacity, or becomes bankrupt and they are a property and financial affairs attorney, and there are no replacement attorneys.

Enduring power of attorney

It has not been possible to make a new enduring POA since October 1 2007, although ones made and signed before that date may still be used.

While the donor is mentally capable, an enduring POA operates in the same way as an ordinary POA.

Again, enduring POAs do not apply to personal welfare, so if the donor still has capacity they may wish to consider making a health and welfare lasting POA (see previous section).

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