Investments  

Understanding the different types of power of attorney

  • List the three main types of power of attorney and how they differ.
  • Describe how the system works in Scotland and Northern Ireland.
  • Identify what a trustee POA is and what to do if no POA is in place.
CPD
Approx.30min

Certification of POAs

There are specific rules about certified copies. These come from Section 3 of the Powers of Attorney Act 1971. 

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The POA can be certified by the donor (while they have capacity), a solicitor or notary public.

The person certifying it must include their full name and every single page of the document must be signed, dated and contain wording stating it is a “true and complete copy of the corresponding page of the original”. The final page must state: “I certify this is a true and complete copy of the lasting power of attorney.”

What if no POA is in place?

The Court of Protection is a specialist court that deals with issues relating to people who lack the capacity to make their own decisions about property, financial affairs or health and welfare.

The Court of Protection can make decisions itself on these matters, or it can appoint deputies to make the decisions.

If an individual becomes mentally incapable, but they do not have an existing POA in place, a legal representative, relative or friend can ask the Court of Protection to make an order appointing them as a deputy.

The terminology is different, but a deputy essentially acts as a court-appointed attorney. The OPG has responsibility for supervising deputies to ensure that they do not abuse their position.

The process can be extremely costly and time consuming, both initially and on an ongoing basis at a very difficult time, which is why it is designed to work as a backstop in cases where there is no POA.

Charlene Young is senior technical consultant at AJ Bell

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Which of the following is not one of the three main types of power of attorney?

  2. According to the author, the remit of ordinary POAs is what compared to the lasting or enduring types?

  3. A certificate provider for a lasting POA must be a friend or colleague who the donor has known for how long?

  4. The author says it has not been possible to make a new enduring Power of Attorney since when?

  5. Lasting and enduring POAs do not exist in Scottish law. True or false?

  6. A trustee POA only lasts for how long?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • List the three main types of power of attorney and how they differ.
  • Describe how the system works in Scotland and Northern Ireland.
  • Identify what a trustee POA is and what to do if no POA is in place.

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