What is a Power of Attorney and why do you need one?

There may be times in your life when, for whatever reason, you need a close friend or family member to deal with your affairs. In this instance, you may consider signing what is known as a ‘Power of Attorney’.

 

In this article, we’ll explain what a Power of Attorney is and how it works.

 

What is a Power of Attorney?

A Power of Attorney is a legal document. There are various different types of Power of Attorney. In this article, we’ll be focusing on an Ordinary Power of Attorney.

 

An Ordinary Power of Attorney is used to give another person the right to act for you, either in all of your financial affairs or just a selection of them (more on this later). The person who you nominate to make financial decisions for you is known as your ‘Attorney’.

 

You must have what is known as ‘mental capacity’ in order to be able to sign up to a Power of Attorney. Essentially, this means that you must be able to make decisions for yourself.

 

When can an Ordinary Power of Attorney be used?

An Ordinary Power of Attorney enables you to appoint one or more ‘Attorneys’ to make financial decisions for you. For example, you may want a family member to look after your finances while you go on an extended holiday abroad.

Alternatively, you may decide to set up an Ordinary Power of Attorney if you have to spend some time in hospital, so you do not have to worry about dealing with your finances and can focus on your recovery.

Ordinary Power of Attorneys may also be used if you are finding it increasingly difficult to get to your bank and want someone else to deal with your account for you.

It’s important to note here that an Ordinary Power of Attorney will become invalid if you no longer have mental capacity. This means that this type of Power of Attorney is not suitable if you want to appoint someone to act on your behalf after you lose the ability to make decisions for yourself. In this instance, a Lasting Power of Attorney may be a better option.

 

An Attorney’s powers can be limited

You may want your chosen Attorney to deal with all of your financial affairs. Alternatively, you may only want them only to deal with certain elements, such as your bank account. You can set up an Ordinary Power of Attorney to suit your needs.

In addition, you can choose how long you would like the Power of Attorney to remain valid.

 

It is possible to revoke your Power of Attorney if you change your mind.

 

Do I need to register my Ordinary Power of Attorney with the Office of the Public Guardian?

 

Unlike a Lasting Power of Attorney, there is no need to register an Ordinary Power of Attorney with the Office of the Public Guardian.

 

Set up an Ordinary Power of Attorney with Legal Path for only £10.99.