What is the Right Type of Power of Attorney for You?

Powers of attorney are a group of very helpful legal documents that allow an individual to legally appoint an individual, group of individuals or even an organisation to make decisions on their behalf.

We often talk about powers of attorney in terms of elderly or vulnerable people, but that’s not the only demographic they are useful for. There are a number of reasons why an individual might benefit from putting a power of attorney in place. Below we’ve covered some of the main reasons, along with the different types of power of attorney documents that are available.

Lasting Powers of Attorney

Lasting powers of attorney (often referred to as LPAs) are the most commonly used powers of attorney, and the one most people think of when this type of legal document comes up. LPAs came into general use in 2007, when they replaced the now-obsolete Enduring Powers of Attorney. (As a sidenote, if you made an Enduring Power of Attorney before October 2007, it should still be valid. You may wish to make use of our free Enduring Power of Attorney checking service.)

The primary purpose of an LPA is to enable an individual to appoint someone they trust to act on their behalf and make vital decisions should they no longer be able to. The person who makes the LPA is called the ‘donor’ and the person who is appointed to act on their behalf is called the ‘attorney’. LPAs are often put in place to guard against the effects of diseases such as Alzheimer’s disease and dementia, but this is not their only function. An LPA can also be hugely beneficial in cases where the donor has lost consciousness due to sudden illness or a serious accident.

There are two types of LPA. The first grants permission for the attorney to make decisions relating to the donor’s property and finances. This could involve things such as:

·???????Managing the donor’s bank accounts.

·???????Choosing how to invest money.

·???????Selling property on the donor’s behalf.

·???????Paying bills.

·???????Applying for, collecting and managing benefit payments.

·???????Arranging for property maintenance.

·???????Buying day to day necessities.

·???????Organising gifts for family members and friends.

·???????Making donations to charity.

When a property and finance LPA can come into effect depends entirely on...Read more