A Power of Attorney (POA) is a legal document that allows you to appoint someone to manage your affairs. This document identifies you as the donor or grantor, while your appointed representative is typically called an attorney.

Your POA outlines the terms and conditions between you and your attorney while giving them the authority to assist you in financial, business, and even medical decision-making. 

Laws for your jurisdiction can govern aspects of a POA, such as who can be an attorney, what powers you can grant them, and what signing requirements are needed to make a valid document. 

There are generally two types of Powers of Attorney. The type you make will determine when it comes into effect and what powers you grant your attorney. LawDepot’s questionnaire allows you to choose multiple options based on your needs and location. Let’s break it down:

1. Ordinary Power of Attorney

An Ordinary Power of Attorney is only valid when you can act for yourself. It stops being effective when you become incapacitated (e.g., you fall into a coma or develop dementia), pass away, or revoke it. Alternatively, it can end on a specified date. 

Generally, this form of POA is made temporarily and allows your attorney to act as you would in decision-making as long as they follow your jurisdiction’s laws. 

Ordinary POAs are helpful when you want to grant specific powers for a set period. For instance, you may be unavailable to manage your rental property due to extensive travel for work. In this case, you might make a POA for your attorney to manage your property while you’re unavailable. Then, you can revoke the POA when you return and are available again.

2. Lasting Power of Attorney (LPA)

A Lasting Power of Attorney remains valid if you become incapacitated. You must make an LPA when you can still make decisions for yourself. 

When you’re creating an LPA in England, Wales, or Scotland, you can grant powers in one of two general areas. These are:

• An LPA for property and financial affairs to grant decision-making authority for your assets and personal property
• An LPA for health and welfare to give authority to make decisions affecting your quality of life

Typically, this form of POA is called a Continuing Power of Attorney in Scotland. Whereas Northern Ireland calls it an Enduring Power of Attorney,

It’s important to note that Northern Irish citizens cannot create an LPA that grants medical authority. They can only make one for property and financial powers. If you’re in Northern Ireland, you should use a Living Will, also known as an Advance Decision, to specify preferences for health care that medical personnel can follow.

Depending on your jurisdiction and the Power of Attorney you create, there are different powers you can grant your attorney. This includes:

Property and financial powers

Giving your attorney powers for property and finances allows them to help with personal and business matters. 

Personal property and financial tasks can be:

• Paying bills and a mortgage
• Collecting and recovering debt
• Maintaining and managing a rental property
• Changing retirement plans and accepting benefits
• Managing your estate and family concerns
• Selling property
• Filing taxes

You can also give power to your attorney to manage your business. They can oversee a company's best interest by making employment, budgetary, and investment decisions. Your attorney can also be a proxy in meetings and vote as a shareholder in your absence.

Health and welfare powers

If your Power of Attorney is created to include health and welfare, you can give decision-making authority for your medical needs. In England, Scotland, and Wales, your attorney can use your health care decisions set out in an Advance Decision to assist in medical authority. 

Health and welfare decisions include:

• Consent to or refuse medical treatments
• Consent to or refuse medical trials
• Decisions about where you live (e.g., in a care home or independently with support)
• Decisions about your day-to-day life (e.g., your diet and daily routine)

Reminder: These powers cannot be given to another person in Northern Ireland in a Power of Attorney. Instead, use a Living Will, also known as an Advance Decision, to specify health care preferences for medical personnel.

Powers you cannot grant

Restrictions for your attorney will vary depending on your jurisdiction. For example, when using an LPA in England or Wales, the Mental Capacity Act 2005 does not allow an attorney to make decisions regarding family relationships, make certain healthcare decisions, or appoint a substitute or successor attorney.  

Generally, any adult age 18 and up with capacity can be your attorney. You can choose to name more than one person as an attorney or ask a professional like your solicitor or accountant to take on the role. 

However, your country’s legislation will restrict who you can name. For example, an attorney named in an LPA for property and finances cannot be bankrupt.

Whoever you choose should be someone you trust to handle your affairs. You should also name an alternate attorney if your first choice cannot fulfill their duties. 

Yes, if you are at least 18 and have capacity, you should make a Power of Attorney. 

Creating a POA can save your family and friends time by enabling them to assist you in stressful and difficult situations.

Instances where you may be unavailable or have the risk of incapacitation include:

• You’re entering old age and need help with day-to-day tasks
• You travel out of state or out of the country often
• You work in a hazardous work environment
• You’re diagnosed with a severe illness or disability (e.g., dementia or cancer) 

If you don't have a POA, your loved ones must go through a court process to receive decision-making authority. This process takes time, costs money, and creates stress for your family.

A Lasting Power of Attorney must be registered. Before it can be registered, your lasting POA must be signed by you and your attorney in front of a witness. When completing an LPA in England, Scotland, and Wales, you also need a certificate provided by someone who has known you for over 2 years or someone with the relevant skills to assess your mental capacity, such as a solicitor, doctor, or registered social worker. 

Once it is signed correctly, your LPA needs to be registered with the appropriate office. They are as follows: 

• England and Wales: Office of the Public Guardian
• Northern Ireland: Office of Care and Protection
• Scotland: Office of the Public Guardian

It’s also important to inform the necessary institutions that you have a POA and give them a copy for their records. For example, if you grant your attorney financial powers, your bank will likely need a copy of your document. 

Check if the institution or office receiving a copy of your POA needs a certified copy. 

Notarisation isn’t necessarily required in the UK, but your POA may need to be notarised to use abroad. You may also want to have a solicitor or notary certify your copies.

In Northern Ireland, and when creating an Ordinary POA in England, Wales, and Scotland, you must name a witness for signing your POA. 

You can revoke your Power of Attorney while you still have capacity. If you wish to update your document, you can create a new POA that states you revoke any previous ones. Alternatively, you can use a Revocation of Power of Attorney to void your current POA.

When you change or revoke a POA, you should inform any institutions that have the original on file and your attorneys. Then, ensure they have a copy of your new POA when applicable.