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Powers of attorney - Frequently asked questions

• What is a Power of Attorney?
• Apart from Lasting Powers of Attorney, what other different types of Power of Attorney are there?
• What can I do if I do not have a suitable Attorney to appoint?
• What information do you need to prepare a Power of Attorney?
• Do you need to see the person making the Power of Attorney or can the document simply be sent to him or her for signing?

What is a Power of Attorney?

A power of attorney is a deed executed by an individual ("the donor") giving power to another individual or individuals ("the attorney(s)") to act on behalf of the donor and carry out various functions on the donor's behalf, usually in relation to the management of the donor's financial affairs and property. The donor does not lose the power to manage his or her own affairs after making a power of attorney, but merely shares the power with the attorney(s). It is of course essential that there is complete trust between the donor and the attorney(s).

However, an ordinary power of attorney has to be capable of being approved by the donor. It is useful where the donor is, for example, going abroad or simply does not wish to be bothered with dealing with his own affairs. However, it ceases to have effect if the donor becomes mentally incapable of managing his or her affairs.

An LPA is a Power of Attorney, which subject to conditions and safeguards, continues in force even after you become mentally incapable of handling your own affairs.  As of 1st October 2007, it replaces the old style Enduring Power of Attorney.  Two separate LPA’s can be made.  One relating to your property and financial affairs and/or one relating to your personal welfare.

Apart from Lasting Powers of Attorney, what other different types of Power of Attorney are there?

There are various other types of power of attorney which are described below.

• General Power of Attorney
  This is used for general purposes when one or more attorneys are appointed but, as its name suggests, it is general in its nature. It cannot be used to deal with trust assets and the power ceases should the donor suffer mental incapacity.
• Specific Power of Attorney
  This is granted in cases where a donor wishes to nominate an individual or individuals to deal with a specific matter only on his or her behalf (such as a property sale). The attorneys will not be able to utilise their powers for any purpose other than that specifically stated in the document. An Enduring Power of Attorney can be limited in this way if required.
• Trustee Power of Attorney
  Powers of Attorney do not generally extend to trust matters, but should a trustee wish to vest his or her trustee powers in an individual, then this is possible by the utilisation of a specific trustee power of attorney, provided that notice of the attorney's appointment is also given to the other trustees.

What can I do if I do not have a suitable Attorney to appoint?

Where there is no other suitable attorney or family member, a partner or partners in this firm can be appointed to act as your attorneys under a power of attorney.

What information do you need to prepare a Power of Attorney?

• For a General Power of Attorney the only information required is:
  - the full name and address of the person giving the Power of Attorney (the donor).
  - the full name and address of the attorney or attorneys
• For a Specific Power of Attorney the following additional information is required:
  - the specific purpose for which the power of attorney is being made
• For a Trustee Power of Attorney the following additional information is required:
  - the full name of the trust
  - the full names and addresses of the co-trustee
• For a Lasting Power of Attorney the following additional information is required:
  - the date of birth of the donor
  - whether more than one attorney is to be appointed and, if so, whether they are to be appointed jointly (so that they must act together and all their signatures are required on documentation) or jointly and severally (so that one or more can act and one signature only is required on documentation)
  - whether there are to be any limitations on the attorney(s)

Do you need to see the person making the Power of Attorney or can the document simply be sent to him or her for signing?

The donor of the power of attorney is our client when we prepare the document for him or her and we must see him or her to ensure that the nature and effect of the document is fully understood.