In England and Wales, powers of attorney are legal documents that allow you to appoint someone to make decisions on your behalf. They provide peace of mind and ensure that your affairs are managed effectively, especially if you become unable to make decisions due to illness, disability, or other circumstances. In this blog, we will explore the types of powers of attorney available and help you determine which option is best suited to your needs.
- Ordinary Power of Attorney (OPA):
An Ordinary Power of Attorney is suitable for short-term or specific tasks. It grants someone, known as your attorney, the authority to make decisions on your behalf for a limited period or in specific situations. Key features of an OPA include:
– Limited Scope: An OPA is typically used when you need assistance with financial matters or legal transactions for a specific period, such as during a hospital stay or while traveling.
– Temporary Authority: The OPA is only valid while you have mental capacity. If you lose mental capacity, the OPA becomes invalid, and your attorney’s authority ends.
– Specific Tasks: An OPA can be tailored to address specific tasks, such as managing bank accounts, paying bills or selling property.
2.Lasting Power of Attorney (LPA):
A Lasting Power of Attorney provides more comprehensive and long-term protection. It allows you to appoint one or more attorneys to make decisions on your behalf, even if you lose mental capacity. There are two types of LPAs:
– Property and Financial Affairs LPA: This LPA grants your attorney(s) the authority to manage your financial matters, including paying bills, managing investments and selling property. Key features of a Property and Financial Affairs LPA include:
– Long-Term Protection: A Property and Financial Affairs LPA remains valid even if you lose mental capacity, ensuring that your financial affairs are effectively managed by your chosen attorney(s).
– Flexibility and Control: With a Property and Financial Affairs LPA, you have the flexibility to specify the extent of your attorney’s powers and any restrictions you wish to impose. This allows you to maintain a level of control over your financial decisions.
– Registration Requirement: To use a Property and Financial Affairs LPA, it must be registered with the Office of the Public Guardian. This ensures that the document is valid and provides legal authority to your chosen attorney(s) to act on your behalf.
– Health and Welfare LPA: This LPA grants your attorney(s) the authority to make decisions about your healthcare, medical treatment, and personal welfare. Key features of a Health and Welfare LPA include:
– Personal Care Decisions: A Health and Welfare LPA allows your attorney(s) to make decisions about where you live, the type of care you receive and any medical treatments or interventions.
– Enduring Protection: Similar to the Property and Financial Affairs LPA, a Health and Welfare LPA remains valid even if you lose mental capacity, ensuring that your healthcare and personal welfare needs are met.
– Consideration of Your Wishes: When creating a Health and Welfare LPA, you can express your preferences and instructions regarding your care and treatment. This provides guidance to your attorney(s) and ensures that your wishes are respected.
Choosing the Best Option for You:
Deciding which type of power of attorney is best for you depends on your specific circumstances and preferences. Here are some factors to consider:
- Long-Term Protection: If you want enduring protection and the ability for your attorney(s) to make decisions on your behalf even if you lose mental capacity, a Lasting Power of Attorney (LPA) is recommended. It provides comprehensive coverage for both financial and health-related matters.
- Specific Tasks or Short-Term Assistance: If you only require assistance for a specific period or task, an Ordinary Power of Attorney (OPA) may be more suitable. It allows you to grant limited authority to someone for a specific purpose or timeframe.
- Personal Preferences: Consider your personal preferences and the level of control you wish to maintain over your affairs. LPAs offer more flexibility and allow you to specify your preferences and instructions, while an OPA is more limited in scope.
- Legal Advice: It is advisable to seek legal advice from a solicitor or legal professional who specialises in powers of attorney. They can provide personalized guidance based on your specific circumstances and help you make an informed decision.
Powers of attorney are essential legal tools that allow you to appoint someone you trust to make decisions on your behalf. Understanding the types of powers of attorney available in the UK, such as Ordinary Power of Attorney (OPA) and Lasting Power of Attorney (LPA), is crucial in choosing the option that best suits your needs. Whether you require short-term assistance or long-term protection, consulting with a legal professional will ensure that you make the right choice and have peace of mind knowing that your affairs will be managed according to your wishes.
If you are considering a power of attorney and are looking for advice on the same why not contact one of our specialist private client lawyers on 020 7537 7000 or email peter@london-law.co.uk for a free, no obligation consultation and see what we can do for you?
This blog was prepared by Alexander JLO’s senior partner, Peter Johnson on the 22nd February 2024 and is correct at the time of publication. With decades of experience in almost all areas of law Peter is happy to assist with any legal issue that you have. His profile on the independent Review Solicitor website can be found Here