When can I start using a Lasting Power of Attorney?
A Power of Attorney (POA) is a legal document that grants someone the authority to make decisions on behalf of another person. This legal arrangement becomes crucial in various situations, particularly when an individual is unable to make decisions for themselves due to illness, disability, or other incapacitating circumstances.
Understanding when a Power of Attorney comes into effect is essential for both the donor (the person giving the authority) and the attorney (the person receiving the authority).
Types of Power of Attorney
Before delving into when a Power of Attorney comes into effect, it's essential to understand the different types of POAs in the UK:
General Power of Attorney: This type of POA grants broad powers to the appointed person(s), allowing them to make financial decisions on behalf of the donor. However, it is crucial to note that a General Power of Attorney becomes invalid if the donor loses mental capacity.
Lasting Power of Attorney (LPA): LPAs are more comprehensive and can cover both financial and health-related decisions. There are two main types of LPAs: Property and Financial Affairs LPA and Health and Welfare LPA. LPAs are designed to remain effective even if the donor loses mental capacity.
Enduring Power of Attorney (EPA): EPAs were replaced by LPAs in October 2007, but existing EPAs are still valid. An EPA only covers decisions related to property and financial affairs.
When Does a Power of Attorney Come into Effect?
The activation of a Power of Attorney depends on its type and the specific circumstances outlined in the document:
General Power of Attorney: Usually, a General Power of Attorney becomes effective immediately upon its execution. It is suitable for short-term needs, such as when a person is temporarily unavailable or unable to manage their affairs.
Lasting Power of Attorney (LPA): An LPA can be structured to take effect either immediately or upon the occurrence of specific events, such as the donor losing mental capacity. Most people opt for LPAs to be effective only when they are no longer able to make decisions for themselves.
Mental incapacity may be the result of conditions such as dementia, severe illness, or accidents leading to unconsciousness. It is important to note that the specifics of when an LPA becomes active can vary depending on the type of LPA and the language used in the document.
It's crucial to highlight that regardless of the type of Power of Attorney, the appointed attorney must act in the best interest of the donor and follow any specific instructions outlined in the document.
Registration Process for LPAs:
The registration process for an LPA involves submitting the document to the Office of the Public Guardian (OPG), along with the relevant fee. Once registered, the attorney gains the legal authority to make decisions on behalf of the donor. It is important to recognise that the registration process takes time, and the LPA may not be immediately available for use.
The OPG say it’s currently taking around 20 weeks to register. Planning ahead and registering the LPA in advance can help avoid delays in critical decision-making.
If you would like to discuss arranging LPAs, we can help. It’s never too early to organise your affairs and with so many reasons the OPG reject applications, we can take the stress of ensuring everything is correct to avoid delays.
Call 0117 3636 212 or email office@haroldstephens.co.uk for a relaxed chat about your situation.