There are three types of Power of Attorney to use:
- A General Power of Attorney (GPA)
- A Lasting Power of Attorney (LPA) for Property and Financial Affairs
- A Lasting Power of Attorney (LPA) for Health and Welfare
The difference between a GPA and a LPA is that a GPA is much simpler and gives a broader use for particular times or events. GPAs are only used for financial matters. For example, if you are going to be out of the country, you can grant your spouse a GPA.
Lasting Power of Attorney
LPAs are more complex. They allow the Attorney (person receiving the power) to make decisions for the Donor (person giving the power) when they are not able to do so because of mental incapacity. As such there are more formalities to comply with. Please note with a GPA it would automatically be revoked if the Donor became mentally incapable.
Lasting Power of Attorney for Property and Financial Affairs allow the Attorney to deal with all property and financial matters on behalf of the Donor. These could be such things as buying and selling property, handling bank accounts and investments, dealing with any businesses, and healthcare payment matters.
LPAs for Health and Welfare allow the Attorney to deal with social and healthcare matters. This includes where you live, how you are cared for, and what healthcare you get.
You must register all LPAs with the Office of Public Guardian. It only comes into effect if you are not capable of making decisions for yourself.
LPAs require confirmation that the Donor understands the LPA in full and is not under any outside influence in issuing it. A certificate, completed by an independent person must be provided.
Anybody the Donor nominates may be notified of the registration of the LPA (limited to 5 people). If there is no one to notify, then the Donor must have two certificate providers.
An LPA is not legal until registration with the Public Guardians Office. Registration may take place at any time, for example, before the Donor loses mental capacity or when the Attorney believes the Donor to have lost mental capacity. Upon registration, the Donor can continue making decisions as long as they are of sound mind.
Ending LPAs
Cancelling an LPA or revoking an LPA can be done by the Donor as long as they have the mental capacity to understand what they are doing. Dissolution or annulment of a marriage or civil partnership will automatically revoke the power.
If the Attorney or the Donor is declared bankrupt, any LPA for Property and Financial Affairs is automatically revoked. However, bankruptcy will not end an LPA for Health and Welfare.
General Power of Attorney
A GPA gives the Attorney power to act on the Donor’s behalf regarding property or affairs, except for making a Will, gifting in a Will or acting as a personal representative/administrator or trustee of a Will. It is extremely important to nominate an Attorney that you trust implicitly. As the Donor, you are liable for the actions of the Attorney you appoint.
A GPA becomes effective immediately. It remains in place unless the Donor cancels it. If the Donor becomes mentally incapable, the GPA is revoked. Death or bankruptcy of either the Attorney or Issuer would automatically revoke the GPA also.
A GPA does not allow any restrictions on the Attorney’s powers. This differs from a LPA.
Further reading: Probate Forms | Probate Guide | Lasting Power of Attorney
