Power Of Atourney

Question 1

What are the key points of a General Power of Attourney?

Answer 1

• In accordance with S25 of the trustee act 1925
• Can delegate some or all trustee functions
• For a maximum of 1 year
• Notice must be served within 7 days of it’s execution
• to the appointer & other Trustees
• with details of the reason for the delegation

Question 2

When would a General POA cease to be effective

Answer 2

On Death
Mental Incapacity
Bankruptcy of trustee
After one year
Or sooner if specified in POA
Trustee can cancel himself

Question 3

What if General POA trustee spends time abroad

Answer 3

Trustee cant delegate his power for more than 12 months
If less he can continue as trustee
Unless he remains abroad over 12 months
In which case other trustees could remove him and replace him as trustee
Under S36 of trustee act 1925

Question 4

Why might an ordinary POA not be suitable

Answer 4

Can only be used for financial decisions - not for health care decisions
Can only be used while individual is mentally competent
Would have to apply to court of protection once competence is lost
Which takes time / is costly and is unlikely to grant the same powers that an LPA would (it would be a Deputy Order)

Question 5

Why should an individual with an ordinary POA set up an LPA

Answer 5

LPA should be set up before competency is lost as they have to be registered before they are valid
With a financial LPA individual can give permission to act whilst mentally competent
And can continue once competence is lost
A health and welfare LPA can only be used once competence is lost
Attorney
& Replacement Attorney can be appointed
So LPA stays in force if main attorney dies or loses competence themselves

Question 6

Why might an Attorney be removed

Answer 6

• Whilst individual remains competent
• He could affect a deed of revocation to remove an attorney
• If a couple divorce the spouse will be unable to act
• Unless is is stated otherwise in LPA
  -If attorney becomes bankrupt / applies for a debt relief order they can no longer act as attorney
• under the financial LPA
• but can continue under the Health & Welfare LPA
• attorney will be removed if they lose competence or die
• if attorney is shown to be abusing their power
• the Office of Public Guardian can remove them
• attorney may resign or refuse to act