Powers of Attorney Flashcards
What is a general power of attorney ?
- Created under the Powers of Attorney Act 1971.
- Temporary measure - E.g.donor goes abroad temporarily and gives someone else authority to run their affairs absence
- Only valid as long as donor (person who makes the POA) has mental capacity
- can be revoked at anytime. Automatically revoked if donor loses capacity, dies or is adjudged bankrupt.
- Attorney cannot give away donor’s property without consent in the power
o Making large gifts is not compatible with a power of attorney
What is a Lasting Power of Attorney?
Replaced Enduring Powers of Attorney (EPA) on 1 October 2007.
No new EPAs can be created
Existing ones still valid
LPA
Created under the Mental Capacity Act 2005
Does not apply in Scotland
LPA gives powers to someone to act on donor’s behalf in the event that donor loses capacity or no longer wishes to act for themselves
What are the 2 types of LPA?
- Financial decisions LPA – pay bills, collect benefits and income
- Can apply if the donor has mental capacity, or can be written so that attorney can only make these decisions after donor has lost mental capacity - Health and care decisions LPA – allows donor to plan in advance how they wish to be looked after once they lose capacity
- Attorney can only use the powers once donor has lost mental capacity
Who are the Office of the Public Guardian?
Whom an LPA is registered with - doesn’t become effective until it is registered
This is usually done straight away
Can apply online using simplified forms
What is the Scottish Equivalent of an LPA?
Scottish equivalent is continuing power of attorney (CPA) under Adults with Incapacity (Scotland) Act 2000
- Donor must have mental capacity when they make the LPA
- Once lost, next of kin / friend must make application for deputyship if they want to manage another’s affairs
What is the process for completing an LPA?
- Complete a prescribed form
- Signed by Donor, Attorney + Certificate Provider
This confirms donor understands effect of creating LPA and are doing so of own free will / there’s been no fraud - The signing needs to be witnessed by an independent person
- Registration takes about 8 - 10 weeks
What makes a valid LPA?
- Donor and attorney over 18, not bankrupt
- Donor has mental capacity
- LPA made on prescribed form
- LPA state donor and attorney + read prescribed info and attorney understands duties
- Certificate from prescribed person (as above)
- Invalid if revoked
NOTE - LPA made in England / Wales may not be accepted in other countries - Fee of £82 paid
Can an LPA be revoked?
- LPA can be revoked by the donor, if they have mental capacity
- EVEN if they lost but then regained capacity. Medical evidence would be required to prove it though
- Revoked on bankruptcy of attorney or donor (not health and welfare),
- Revoked if the donor/attorney are married and they divorce
- Revoked if the attorney is incapacitated
What are the benefits of an LPA?
- Advance planning of who should make decisions and how they should be made in event of an individual’s incapacity
- If don’t make one, application for deputyship made to Court of Protection (COP), no say in who will look after their affairs or make decisions
- Assets inaccessible until deputyship in place, deputy subject to more stringent supervision and an annual fee
What are an attorney’s responsibilities?
- Make decisions in donor’s best interest (those authorised under LPA)
- Consult with donor and others with an interest in donor’s affairs before making decisions
- Keep own money separate from donor’s
- Respect donor’s confidentiality
- Ensure no conflict of interest
- Only make gifts on customary occasions (birthdays + to those in immediate family + must be reasonable to estate value) No Large gifts
What happens if an attorney breaches their duty?
- If attorney breaches duty, can be ordered to make restitution
- Fine and/or 5 years in prison if mistreat / purposefully neglect someone who lacks capacity (Nadoo)
How does an Enduring Power of Attorney Differ?
- Only EPAs made before 1 October 2007 are valid
- No changes can be made to an existing EPA
- If an EPA is no longer valid or a change is needed then a new LPA must be created
- Created under the Enduring Powers of Attorney Act 1985
- No authority to make health and welfare decision under EPA
- The donor can either give their attorney powers to use immediately (i.e. before it is registered) or they can stipulate that their powers only become available in the event that the donor becomes mentally incapacitated
Can an EPA be revoked?
- Donor can revoke power at anytime while they have mental capacity + can make own decisions
- Either way, EPA is usually revoked if donor becomes mentally incapacitated
- UNLESS it has been registered with the Office of the Public Guardian (OPG)- Must be done as soon as attorney believes donor is or is becoming mentally incapacitated
- EPA suspended temporarily while registration process take place
- Once registered attorney can continue to act despite the donor’s mental incapacity
- If donor regains capacity they can apply to have the attorney revoked, although they will need to provide medical evidence
EPA Duties - what are they?
- Act in donor’s best interests, not take advantage of donor for own benefit, keep money separate from their own
- Gifts can only be made where donor might be expected to meet donee’s needs or is reasonable
- Gifts for IHT planning cannot be made without court’s approval
- EPA automatically revoked on the attorney’s bankruptcy
- Donor can only revoke the EPA with permission from Court of Protection
What is the Mental Capacity Act 2005?
It supports / protects those who are unable to make their own decisions through
Court of Protection(COP), Office of Public Guardian(OPG) and Independent Mental Capacity Advocate (IMCA)