Three types of power of attorney

Most people understand that for someone else to manage our affairs, we need to have authorised it via a power of attorney. But many are not aware that there is more than one type available, to give you peace of mind should you become incapacitated and unable to make decisions due to ill health.

Lasting power of attorney

This is the most common power of attorney which is used for long-term planning. It has two types:

Property and financial affairs – this allows the attorney to make any financial decisions in someone else’s place. This includes things like paying bills, managing bank accounts and even selling or buying property. If you have mental capacity, your attorney can act on your behalf only with specific instructions from you, but if mental capacity is lost, they can manage any financial affairs.

Health and welfare – This is only used once a person has lost mental capacity and covers any decisions about their health and personal welfare. This might include decisions about where they live and any medical treatments they receive.

You can get a lasting power of attorney online and register it yourself, or pay someone to do it through a provider like Power Of Attorney Online.

Enduring power of attorney

You can no longer make an enduring power of attorney but if you have one in place that was made before 1 October 2007 and registered, it is still valid. If not already registered, this can still be done as long as it was made before that date.

They are more limited than a lasting power of attorney and don’t include decisions about health and welfare so if you have one, you might want to consider updating to a lasting power of attorney.

General power of attorney

These are only suitable for short-term issues, such as someone being able to temporarily manage your affairs while you are unavailable. Examples include during hospital treatment, recovery or while travelling for an extended period. They can only be used when someone still has their mental capacity.