There are a number of reasons why you might need someone to make decisions for you or act on your behalf. It could be to cover a temporary time period or for a longer term situation if you have a condition that would make it difficult to handle your affairs in the future.
What type of power of attorney you have depends on your needs.
An ordinary power of attorney is limited to a period of time
An ordinary power of attorney gives another person authority to make decisions about your financial affairs for a temporary time period for an extended overseas trip or to cover a long stay in hospital, for example.
You can state a time period for an ordinary power of attorney to last or you can restrict it to certain activities. But as soon as you lose mental capacity, the ordinary power of attorney will stop.
You don't need to register this document with the Office of the Public Guardian.
A lasting power of attorney is set up if you want to be covered in the future
A lasting power of attorney (LPA) is a legal document that lets you appoint one or more people, to help you make decisions or to make decisions on your behalf. Attorneys might be a friend, relative or professional person. When you appoint a lasting power of attorney you’re giving someone a lot of your personal information, and giving them power to make decisions about your life. That’s why it is important to choose someone you can trust to be your attorney.
There are two types of LPA:
- one covers decisions about your property and financial affairs;
- the other covers decisions about your health and welfare.
You can have one or both in place and appoint the same or different people to each.
For your property and financial affairs
A lasting power of attorney for financial decisions can be used while you still have mental capacity or you can state that you only want it to come into force if you lose capacity.
A lasting power of attorney for financial decisions can cover everyday tasks such as paying bills or property repairs. Or bigger decisions like buying and selling property if you needed to move to a property that was better adapted for your healthcare needs or if you were moving into longer term care.
If you want to, you can limit the decisions your attorneys are allowed to make or place conditions on what they can do.
If you’re setting up a lasting power of attorney for financial decisions, your attorney must keep accounts and make sure their money is kept separate from yours. You can ask for regular details of how much is spent and how much money you have. These details can be sent to your solicitor or a family member if you lose mental capacity. This offers an extra layer of protection.
For your health and welfare
To have mental capacity you must understand the decision you need to make, why you need to make it, and the likely outcome of your decision. A health and welfare attorney can only make decisions for you when you’re unable to make these decisions for yourself.
A health and welfare attorney could make decisions about where you live, your day-to-day care and the medical treatment you receive such as life sustaining treatment. The big difference when compared to the power of attorney for property and financial affairs is that the health and welfare power of attorney cannot be used while you still have the mental capacity to make decisions about your own welfare or treatment.
Lasting power of attorney has different names in different parts of the UK:
- England and Wales — lasting power of attorney.
- Scotland — continuing power of attorney.
- Northern Ireland — enduring power of attorney.
What they cover differs slightly, but the principles are the same wherever you live.
A lasting power of attorney must be registered at the Office of the Public Guardian for England and Wales or Scotland, or with the Office of Care and Protection in Northern Ireland.
The Office of the Public Guardian for England and Wales offers an online service for people registering a lasting power of attorney. It lets donors and attorneys give organisations access to an online summary of their LPA. You can register for the service here.
The Alzheimer's Society can help you fill in the form online if you don't have access to the internet, or aren’t comfortable using a computer. A trained volunteer will complete the online form for you — please remember that the service doesn’t offer legal advice. If you’d like to know more, contact the Alzheimer's Society National Dementia Helpline on 0300 222 1122.
You can appoint the same person to be your attorney for Property and financial affairs and Health and welfare, or you can have different attorneys, as long as they are over 18. For a property and financial affairs attorney, the person you choose cannot be bankrupt.
It's important to think carefully about who you want to make decisions on your behalf - and to make sure they’re willing and able to do so. Most people choose a relative or close friend. You can also ask a professional, like an accountant or solicitor, but remember that they might charge for their time.
You can change or end a lasting power of attorney at any time, as long as you’re mentally capable of doing so. For example, if your attorney’s circumstances change, they might be unable or unwilling to keep on the role.
If someone has become unable to look after their own affairs but hasn’t already set up a Power of Attorney, carers who need to apply will need to go through legal channels. In England and Wales the Court of Protection will appoint a deputy, usually a family member or close friend. In Scotland 'guardianship' is appointed by the local Sheriff Court — there’s more information from the Office of the Public Guardian (Scotland).
If you have a lasting power of attorney that you want to register with Phoenix Life and know what type of policy you have please visit our customer centre to find the relevant contact details.
