There are two types of Powers of Attorney: Ordinary and Lasting.
An Ordinary Power of Attorney is only valid while you are mentally sound and able to make decisions. This type of POA is typically used when you want to delegate certain decisions to your attorney because you will be unavailable due to travel or other circumstances which require your full attention.
Alternatively, a Lasting Power of Attorney (or LPA) remains valid if you are ever incapacitated and unable to manage your own affairs. This can occur if you are injured in an accident, if you develop a debilitating illness, or if you suffer a sudden severe health crisis such as an aneurism or stroke.
In England and Wales, there are two types of Lasting Power of Attorney:
- LPA for Property and Financial Affairs
- LPA for Health and Welfare
An LPA for Property and Financial Affairs grants your attorney authority to make decisions concerning your assets and personal property.
An LPA for Health and Welfare lets your attorney make decisions about items like your daily living routine, moving into an extended care facility, or requesting aid from social services. You can also give your attorney the power to provide or withhold consent for life-sustaining medical treatment.
Note: You can use a single Lasting Power of Attorney document to indicate your wishes for both your Property and Financial Affairs, and Health and Welfare requirements.
You will need to have your completed and witnessed Lasting Power of Attorney registered with the Office of the Public Guardian (OPG) before it is considered fully active.
Both Ordinary and Lasting POAs become invalid when the creator passes away. In this event, the executors of the deceased's Last Will and Testament receive control over the distribution of the estate.