Power of Attorney/LPA’s and Isolation – Allowing someone to act on your behalf while in Isolation

Given the unprecedented times we are facing due to the Coronavirus pandemic, your thoughts may be ‘how can my financial affairs be dealt with if I am ill or isolating?’ The solution is a power of attorney.

What is a general power of attorney (“GPA”)?

A general power of attorney (GPA or ordinary power of attorney) allows you to appoint one or more people to deal with your financial affairs at your direction and sign on your behalf. You must have mental capacity for a GPA to be used.

Unlike an LPA you do not need to register a GPA with the Office of the Public Guardian (OPG) before it can be used. Therefore, it is effective as soon as you sign it. You can stop the GPA being effective through a deed of revocation or it will automatically end if you lose mental capacity to make your own decisions.

A lasting power of attorney (LPA) allows you to appoint one or more people to make or help make decisions on your behalf if you have an illness or accident which result in you being unable to make your own decisions, i.e. you lose your mental capacity. In practice, this means you and will have more say over what will happen to you.

There are two types of LPA:

1) Health and welfare: can only be used when you do not have mental capacity and may cover decisions concerning your medical care, moving into a care home, life-sustaining treatment, your daily routine etc.

2) Property and financial affairs: can be used with your permission as soon as registered with the OPG and may cover decisions concerning payment of bills, access to bank or building society accounts, selling your home or collecting benefits or a pension.

Here is a comparison of some key points for you to consider when choosing between a GPA and an LPA:

For further questions in relation to the above, please contact James Cohen directly on [email protected] or 0207 822 2257.

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