Lifetime Planning

Powers of Attorney

Powers of Attorney - for peace of mind

A Power of Attorney ('POA') is a document by which one person ('the Donor') gives another person ('the Attorney') the power to act on his behalf and in his name. It is restricted to financial matters and may be completely general, entitling the Attorney to do almost everything the Donor could do himself, or it may be limited to certain defined objects.

The practical purpose of a POA is not only to invest the Attorney with power to act for the Donor, but also to provide him with a document defining the extent of his authority, which he can produce as evidence to the third parties with whom he will deal.

An Enduring Power of Attorney ('EPA') is one which gives an authority which continues even if the Donor becomes mentally incapable. Since October 2007 the EPA has been replaced by the Lasting Power of Attorney ('LPA.') That said, any EPA made before that date will remain legally valid. If a donor loses their mental capacity, the EPA can be registered at that time.

The scope of the new Lasting Powers of Attorney

Unlike EPAs, LPAs can extend beyond dealing with a person's financial affairs to also cover personal welfare. The Donor can stipulate whether it should apply to financial affairs, personal welfare or both and whether subject to restrictions or completely unfettered.

Dealing with financial matters does not extend to making gifts (other than those usually made by the donor) or signing the donor's will. Welfare extends to deciding on issues such as where the Donor will live, their care and medical treatment. The Attorney may also give or refuse consent to the carrying out or continuation of medical treatment. Importantly, the Attorney cannot refuse life-sustaining treatment unless the LPA expressly says so.

As with EPAs, the Donor can appoint one or more attorney. The LPA should specify whether, if there is more than one attorney, the Attorneys must act together or can act separately.

The LPA must be registered with the court immediately regardless of the Donor's mental capacity. In order for the document to be registered, it will need to be accompanied by a certificate confirming that the Donor understands the effect of the LPA and it has been willingly signed.

Once registered, the Attorney has the authority to act in accordance with the terms of the LPA. As with EPAs, third parties will need to see a copy of the document before they will accept an Attorney's instructions.

A Donor can revoke their LPA at any time provided they have the mental capacity to do so.

Fees

For advising on, and drafting, a POA: £200 plus VAT. For advising on, and drafting, a full LPA (both financial and welfare) £800 plus VAT and registration fees, and for part only £500 plus VAT and registration fees.

Please email Rod Smith at rodsmith@boltburdon.co.uk for information about our services, general advice or to subscribe to our weekly private client newsletter or phone him directly on 020 7288 4732.