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Appointing a power of attorney is a scary thought. However, it can give you peace of mind that someone you trust will handle your affairs in a circumstance where you cannot. If you’re unsure what is meant by a power of attorney or how they work, don’t worry. This recent article will explain the five things you need to know.
For more information, please visit our wills and probate page. Furthermore, if you want to contact a solicitor today, please call us directly on 020 3007 5500.
1. What is a power of attorney?
A power of attorney is a legally bound document that allows you to appoint someone to make decisions on your behalf in a circumstance where you cannot.
Common examples of when you may need someone to make decisions on your behalf include:
Suppose you have an accident and need to stay in hospital temporarily. You may need someone to deal with your finances, for example, paying your bills.
If you have developed dementia, you will need someone to make important decisions on your behalf, such as the medical care you receive and where you live.
Suppose you have a physical impairment, making it more challenging to get to the bank. You may want someone to go to the bank and handle your financial affairs on your behalf.
2. What are the three types of powers of attorney?
There are three different types of powers of attorney, which are:
Ordinary power of attorney.
What is an ordinary power of attorney (OPA)?
An OPA appoints someone to make decisions over your financial affairs. It is only valid when you still have mental capacity. Common reasons why people want to set up an OPA include:
Needing someone to organise your finances while you’re temporarily unable to, for example, if you need to stay in hospital or are going on an extended holiday.
You’re finding it more challenging to leave your house, so you need someone to deal with financial affairs on your behalf, for example, making visits to the bank.
Allowing someone to act on your behalf while you monitor their actions.
In a circumstance where you want to give someone permission to make decisions on your behalf when you lose mental capacity, you need to consider a lasting power of attorney. What is a lasting power of attorney? Find out below.
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What is a lasting power of attorney?
What is a lasting power of attorney?
An LPA is when you give someone you trust the legal right to make decisions on your behalf only when you lose mental capacity. Losing mental capacity is when you’re no longer able to make decisions for yourself. Common examples include someone who has developed dementia or suffered from a brain injury.
There are two types of LPA:
- LPA for financial affairs
- LPA for health and welfare
You can appoint an LPA can make decisions on your behalf regarding both health and welfare and financial affairs.
LPA for financial affairs.
An LPA for financial affairs covers decisions such as:
- Buying and selling property
- Making investments
- Paying bills
- Paying the mortgage
If you’re setting up an LPA for financial affairs, your attorney must keep an account of transactions and make sure their money is kept separate from yours. You can even include a condition that ensures these details are sent to your solicitor or a family member.
LPA for health and welfare decisions.
An LPA for health and welfare can cover things such as:
- Where you should live
- Your medical care
- What you should eat
- Whom you should have contact with
You can also give permission for an attorney to make critical decisions regarding life-saving treatment.
3. Enduring power of attorney.
What is an enduring power of attorney (EPA)?
EPA’s are now outdated, as they were replaced by LPA’s in October 2007. However, if you created an EPA before October 2007, it will likely still be valid. An EPA covers decisions over your financial affairs and property. An EPA will come into effect either when someone loses mental capacity or if you want someone to act on your behalf.
4. How much does a power of attorney cost?
The cost of a power of attorney depends on the type of power of attorney you need. Below our solicitors outline the cost of appointing one LPA (health and welfare or finance) or two LPAs (health and welfare and finance). Additionally, it may be that you want a mirror LPA. A mirror LPA is when you’re married or in a civil partnership and you want to appoint your partner as your LPA. Furthermore, if you need an OPA, there’s no disbursement to be paid to the Office of the Public Guardian, and if you have an enquiry relating to an EPA, you will need to arrange a consultation with our firm.
| Service | Disbursements | Solicitor Fee |
|---|---|---|
| One LPA | £82 | £400 + VAT |
| Two LPAs | £164 | £625 + VAT |
| Four LPAs | £328 | £920 + VAT |
| One Mirror LPA | £164 | £625 + VAT |
| Two Mirror LPAs | £328 | £850 + VAT |
| OPA | N/A | From £750 + VAT |
| EPA enquiry | N/A | £120 + VAT consultation first |
5. What happens if someone has already lost mental capacity?
Unfortunately, once someone loses mental capacity, it’s too late for them to appoint a power of attorney. However, you can apply for a deputyship from the Court of Protection. If the court grants this application, the deputy will legally have the right to manage the affairs of someone who lacks mental capacity.
How can Britton and Time Solicitors help?
A power of attorney is an important legal document, as it essentially gives someone permission to make decisions on your behalf. Therefore, it’s crucial to ensure that you carry out the correct procedure for producing your power of attorney. That’s why our initial consultations with our wills and probate solicitors offer you:
- Unlimited time to go through the details of your case and ask any questions you may have
- An overview of your legal standpoint and your available options
- A precise time and fee estimate for your case
To arrange your initial consultation with one of our solicitors, simply call us on 020 3007 5500.
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