Power of Attorney explained

What is Power of Attorney? 

Power of Attorney is a legal document that allows someone (the attorney) to act on behalf of another person (the donor). The donor can ask their attorney to make decisions about their: 

• health 
• welfare 
• finance 
• property/ies 

Power of Attorney can only be granted when the donor has the mental capacity to agree. If the donor can’t do this, you might need to get an Order from the Court of Protection. 

What is the Court of Protection? 

What happens if you need to manage someone else’s finances, but they don’t have the mental capacity to consent? 

 

In these cases, you’ll need a court order to grant you the authority to manage their affairs. 

 

You’ll need to apply through the Court of Protection (COP) to become a ‘deputy’. Find out more information about becoming a deputy.

When might you consider a Power of Attorney? 

You may decide that you would like someone to manage your money and home on your behalf. This could be either permanently, or for a short time. 

 

Some of the reasons people choose to use Power of Attorney are: 

• illness 
• disability  
• living abroad 

Who can be a Power of Attorney? 

The donor can choose anyone to act on their behalf if they are aged 18 or over and can make decisions for you and themselves.  

 

You can choose someone you know and trust to act in your best interest. Or if you prefer you can choose a professional attorney, like a solicitor or accountant.  

 

You can choose any number of attorneys, though most people select between one and four. If you choose more than one attorney, you'll need to specify how they should make decisions. This could be ‘acting jointly’ whereby all decisions are made together. Or each attorney could act on their own, this is called ‘acting jointly and severally.’ 

What can an attorney do? 

You can decide what an attorney can or cannot do. The person/s you choose to be your attorney will agree to only act on behalf of your best interests and in the ways you set out in your document. 

 

You may consider asking your attorney to keep a record of any money they spend, to give you extra financial protection.  

What can an attorney do with my Principality account? 

If you have a mortgage	If you have a savings account
Manage your property	Manage transfers
Sell your home or properties	Manage payments into the current account

The different types of Power of Attorney 

General Power of Attorney (GPA)  

A GPA is a legal document that allows someone to make decisions about your money or property on your behalf.  

 

You can choose how long your GPA lasts, depending on your circumstances. However, a GPA is usually for short-term support, for example, if you become unwell or would like help with a specific task. 

 

Lasting Power of Attorney (LPA)   

A LPA is a legal document. It allows someone to make decisions on your behalf if you’re no longer able to. It can also help you stay in control of your money, as you know exactly how it will be managed if you’re ever unable to manage your affairs yourself. 

 

There are 2 different types: 

• health and welfare: including medical care, living arrangements and who can contact you 
• property and financial affairs: including managing your money and buying or selling your home or properties 

 

LPA is designed to provide long-term support as soon as it’s registered with the Office of the Public Guardian or only if you lose mental capacity.   

 

You must register your LPA with the Office of the Public Guardian before a solicitor can support you. 

 

Enduring Power of Attorney (EPA) 

Enduring Power of Attorney (EPA) was replaced by Lasting Power of Attorney in October 2007.  

 

It is a legal document that allows someone to make decisions about your money and home on your behalf.  

 

An EPA may still be accepted by financial providers if you still have mental capacity. You may want to consider registering with the Office of the Public Guardian (OPG). 

How much does it cost? 

Costs vary, depending on the Power of Attorney you choose and whether you get help from a solicitor.  

 

If you want to register for a LPA you can expect to pay around £80 - £150 for each document.

How to set up a Power of Attorney 

Please visit our support centre to find out how to register a Power of Attorney with us. 

 

The information in this guide was accurate when published.