RO1 - S.3 - legal concepts and considerations relevant to financial advice

Question 1

When did Enduring POAs cease to exist and what replaced them?

Answer 1

October 2007, Lasting Power of Attorneys

Question 2

What was an Enduring Power of Attorney?

Answer 2

Written whilst mental capacity was held, Power handed over once the mental capacity is lost.

Question 3

What are the two types of Lasting Power of Attorney available?

Answer 3

a) Financial attorney - make financial decisions on behalf of another
b) health and care attorney - make decisions when another is incapacitated

Question 4

Which Act introduced Lasting Power of Attorneys?

Answer 4

The Mental Capacity Act 2005

Question 5

Where do LPAs have to be registered to become legal?

Answer 5

Office of the Public Guardian

Question 6

In what 3 situations would an LPA cease to be valid?

Answer 6

1) Bankruptcy of the donor
2) Death/ bankruptcy of the attorney
3) Divorce/ dissolution of a civil partnership between donor & donee

Question 7

What were the two ways an Enduring Power of Attorney could have been set up?

Answer 7

1) Immediate Action - Came in to force straight away allowing the attorney to act
2) Delayed Action - Only came in to force when the donor lost capacity and the POA had been registered

Question 8

For a contract to be valid, what are the four stages it has to go through?

Answer 8

1) Offer
2) Acceptance
3) Intention
4) Consideration