INTRODUCTION
A Power of Attorney is a Legal Document where you can give the power to someone else to act on your behalf on a variety of Legal matters.
LEGAL MATTERS
The document usually authorises someone else to sign papers on your behalf or make legal decisions for you. The person giving the power of attorney is called a “Donor” and the person to act as the attorney is called the “Donee”.
DIFFERENT TYPES OF POWER OF ATTORNEY
Broadly speaking there are four types of power of attorney.
- GENERAL POWER
A general power is intended to appoint someone to act on your behalf with general authority to deal with all matters. This might be in a situation where you may be absent abroad or if you are physically ill.
- SPECIFIC POWER
A specific power is intended to deal with a specific particular matter or transaction on your behalf. For example, to buy or sell particular assets such as your home or stocks or shares.
- TRUSTEE ACT POWER
This is a special power to deal with powers under the Trustee Act 1925 such as trusts, powers or discretions vested in a donor in his capacity as a trustee or as a personal representative or as a tenant for life or statutory owner under the Settled Land Act 1925 for a period of more that 12 months. You will need to get specialist legal advice on these types of matters.
- ENDURING POWER
An Enduring Power of Attorney is a Document, which you can use to appoint someone to act on your behalf, should you in the future become incapable of managing your own affairs. There is always a risk that you might become incapacitated whether by reason of illness, accident or old age. Please refer to our separate information sheet on this area.
EXAMPLES
These can include: -
- House Sales and Purchases
Where you will not be available for some time to sign the documents.
- Ill or Unwell
If you are, and you do not want the bother or hassle of dealing with your own
affairs.
- Financial Matters
If you would like someone else to deal with such as Bank or Building Society Accounts, Stocks or Shares.
- Abroad
On holiday or for sometime and need matters dealing with in your absence.
SCOPE OF AUTHORITY
You can either give your Attorney general authority to act on your behalf or you may wish to place limitations or restrictions on the extent of the authority. The choice is yours.
CONDITIONS
Anyone can set up a Power of Attorney provided they are over 18 and are mentally capable. The person nominated to act – the attorney – must be over 18 and not bankrupt at the time he or she signs the document.
CHOICE OF ATTORNEY
You can choose whoever you like to act as your Attorney although it has to be someone you absolutely trust. Often it is best to appoint more than one person, usually a relative, friend or even your solicitor. By appointing more than one person you can ensure that the Attorney’s powers will not be abused.
ATTORNEYS DUTIES
An Attorney is usually called a “Donee”. The attorney has a number of responsibilities, but mainly to act on your behalf and in your best interests. The Attorney can, of course, only act within the limits placed in the Power of Attorney deed.
EXERCISE CAUTION
Powers of attorney may seem to be simple documents, but they contain a number of traps for the unwary. They are also extremely powerful documents and should be created with care. Please use our services for further information and advice on which type of power is most appropriate to your circumstances and the points you ought to consider in deciding how it should be worded and whom you should appoint as your attorneys.
FORMAT
A Power of Attorney document must be in a particular format as set out in regulations. Any alteration to that format may result in the document not being valid.
GENERAL POWER OF ATTORNEY
A General Power of Attorney Deed enables the Attorney to do anything that you may lawfully do by an agent. The authority and powers in this type of deed are very wide ranging. You should only enter into this type of deed if you really have to and if you absolutely and completely trust your Attorney to act only in your best interests.
SPECIFIC POWER OF ATTORNEY
A Specific Power of Attorney Deed gives the Attorney only the rights and powers that are specifically conferred and given by you. For example you may be emigrating or due to go on holiday and have to leave the country before you sold off your home and may wish your Attorney to only act on your behalf concerning the Sale or Purchase of your property or to deal with only very specific matters. This type of deed can be revoked by the donor at any time by notice and will automatically be revoked upon his death, bankruptcy or mental incapacity.
TRUSTEE ACT POWER
This type of Power of Attorney deed only applies in special situations. It is essential to seek specialist legal advice before getting involved with these matters. This applies to all powers to which section 25 of the Trustee Act 1925 apply. That is to say any of the trusts, powers or discretions vested in a donor of a power of attorney in his capacity as trustee or as personal representative or a tenant for life or statutory owner under the Settled Land Act 1925 for a period not exceeding 12 months.
ENDURING POWER OF ATTORNEY
A Power of Attorney document should not be confused with an Enduring Power of Attorney document, which is different. A Power of Attorney document is effective only whilst you are capable of managing your own affairs. An Enduring Power of Attorney document does not come into effect until you become incapable of managing your own affairs. It is therefore useful to consider making an Enduring Power of Attorney document at the same time as a General Power of Attorney, particularly if you are thinking of giving someone the power to deal with matters on your behalf for some considerable time. For more information, please refer to our information sheet on enduring Powers of Attorney.
REVOCATION
Power of Attorney documents usually be revoked by you at any time and will automatically become revoked in the event of your death, bankruptcy, or if you become mentally incapable. Sometimes however the Power of Attorney document can be expressed to be irrevocable, except with the consent of the Attorney.
SALE OF LAND
A general power of attorney or a specific power of attorney can be used to appoint someone to act on your behalf as your attorney to sell land. It is safer to use the Specific Power of Attorney Deed and restrict your attorney’s powers simply to that transaction rather than giving them unnecessary wider powers.
SPECIAL DECLARATION FOR SALE OF LAND
However a Special Declaration for Sale of Land must be given to establish the beneficial title of a purchaser of an interest in beneficially owned land from the donor of a power of attorney. This Special Declaration for Sale of Land must be signed and completed by the donee of a power of attorney within three months of his granting any interest or sale of property or land.
MAKE A POWER OF ATTORNEY
Making a Power of Attorney is simple. We can prepare one for you at a low cost.
