Powers Of Attorney

Question 1

General powers of attorney

Answer 1

• general powers of attorney (if you were going on holiday for a year, would allow someone to act on your behalf in your absence

Question 2

Enduring powers of attorney

Answer 2

• only for financial decisions not for health and welfare

Question 3

Lasting powers of attorney

Answer 3

• covers financial as well as health and welfare

Question 4

Rules around setting up powers of attorney

Answer 4

• must be over 18 and if sound mind
• must be in writing
• must be signed by the person setting up the poa
• must be witnessed by at least one person
• 2 documents. - 1 for financial decisions and 1 for health and welfare
• must be register with the court of protection before the onset of mental incapacity

Question 5

Benefits of POAs

Answer 5

• client can document pre-determined wishes on welfare and /or financial issues
• they can ensure who will make those decisions
• avoids delays and costs of dealing with the court of protection

Question 6

Drawbacks of POAs

Answer 6

• IHT planning is extremely restrictive once in place
• if mental capacity is lost the LPA can not be revoked
• expensive