In UK law, there are several types of Power of Attorney (PoA), each serving different purposes and with varying scopes of authority. Here are the main types:
Ordinary Power of Attorney (OPA)
Purpose
Grants someone the authority to manage financial affairs on your behalf for a temporary period or specific purpose.
Scope
Limited to financial matters (e.g., managing bank accounts, paying bills, or selling property).
When to Use
Suitable when you’re temporarily unable to manage your finances, such as during travel or illness.
Revocation
It ends automatically if you lose mental capacity or can be revoked at any time by you.
Lasting Power of Attorney (LPA)
Purpose
Allows someone to act on your behalf if you lose mental capacity or no longer want to make decisions yourself.
Types of LPA
Property and Financial Affairs LPA: Deals with financial matters (e.g., managing accounts, property transactions, paying bills).
Health and Welfare LPA
Covers decisions about healthcare, medical treatment, and personal welfare (e.g., where you live, consenting to treatment).
Registration
Must be registered with the Office of the Public Guardian (OPG) to be valid.
Revocation
Can only be revoked before it’s used or if you regain mental capacity and formally revoke it.
Enduring Power of Attorney (EPA)
Purpose
The predecessor to the LPA for financial matters.
Status
No longer available to create (replaced by LPAs in 2007). However, existing EPAs remain valid if made before October 1, 2007.
Scope
Only for managing financial affairs. Must be registered if the donor loses mental capacity.
Specific or Limited Power of Attorney
Purpose
Grants authority for a single, specific transaction or decision, such as selling property or signing a contract.
Scope
Very limited and ends when the task is completed.
Revocation
Automatically ends once the specified purpose is fulfilled.
Key Considerations
Mental Capacity
To create any PoA, you must have mental capacity at the time of making it.
Attorney’s Role
The attorney(s) must act in your best interests and follow any specified instructions.
Revocation
Most PoAs can be revoked at any time, provided you still have mental capacity.