We all love our independence and the ability to make our own decisions. But one thing life can be is unpredictable.

There might be a time when you are unable to make your own decisions and discharge your duties due to loss of mental faculties, age-related issues, physical ailments or even death. In such situations, having a power of attorney (POA) can be a great way to not just protect your best interests but also take care of your loved ones.

In this article, we’ll be looking into what a power of attorney is and the different types of POA available.

What is a Power of Attorney

A power of attorney is a legal document created wherein an individual (donor) nominates another person (attorney) to act on their behalf if they are indisposed. The attorney will be a person(s) whom you can trust, is above the age of 18 and is of sound mind.

Choosing an attorney is a critical decision that you must undertake when you apply for POA online or offline because they become responsible for your affairs once you’re unable to do so yourself. An attorney can be anyone from your adult children, spouse, friend, relative or even a solicitor.

You can also have more than one attorney. The Joint Lasting Power of Attorney ensures that two or more people selected as attorneys collectively make a decision. However, this can cause delays as everyone must reach a mutual decision and they also need to be present together in person.

Another option is to have a Joint and Several Lasting Power of Attorney. In this method, the attorneys can make a decision both individually and collectively, making it more convenient.

The responsibilities of an attorney are:

• Managing assets (financial and physical)
• Making purchases on behalf of the donor
• Choosing the right living and care conditions for the donor if they are indisposed

Usually, there are three kinds of power of attorney that you can create. Let us learn more about them!

Lasting Power of Attorney

Lasting Power of Attorney or LPA is the most common form of estate planning. LPAs cover two broad categories: property and financial affairs and health and welfare. The former LPA will enable attorneys to take action on matters regarding operating bank accounts, collecting funds and pensions, managing properties (buying, selling and renting), managing taxes and funding any treatment or care plans.

Attorneys who have been given the health and welfare LPA have the right to make decisions pertaining to the donor’s daily routine, medical care and end-of-life treatment. Unlike the property and financial affair LPA, this POA will get into effect only if the donor is mentally incapable.

The LPA needs to be registered with the Office of the Public Guardian (OPG), which can take anywhere up to 16 weeks for a fee of £82. Once the LPA has been registered with OPG, it can come into effect.

Ordinary Power of Attorney

The Ordinary Power of Attorney is also known as the General Power of Attorney. This POA can be used when the donor wants to give permission to an attorney for a shorter period. These documents can be prepared for specific capacities and can be revoked once the donor can undertake the duties by themselves.

Enduring Power of Attorney

The Enduring Power of Attorney (EPA) has not been in use since October 2007 and is only recognised in England, Northern Ireland, and Wales. However, an EPA created before that still stands valid. An EPA is only applicable to financial matters and can only take effect in the event that the donor loses their mental capacity.

When an attorney has been appointed under the EPA, they can act in place of the donor without registering the POA, given that the donor still has mental capacity. However, if the donor loses their mental faculties, the EPA will need to be registered. During the period of registration, the attorney only has limited powers and cannot undertake any major financial decisions.

Wrapping Up

Creating a POA is easy, you can visit a solicitor or create it online. However, always seek guidance from a solicitor who can help you word it perfectly.

Choosing the right attorney can make all the difference, as they will be responsible for discharging your financial obligations and duties when you are incapable. Sometimes appointing more than one attorney is a smart move, as it will act as a failsafe if one attorney falls sick or passes away before you.

Preparing for the future is important because you never know when an emergency strikes.