Other types of power of attorney can work differently. An Ordinary Power of Attorney, for example, may be created for a specific period and cannot continue if the donor loses mental capacity.
If you are not sure about the different types available, our guide to what power of attorney is explains how they work and when you might consider putting one in place.
How Long Does a Lasting Power of Attorney Last?
A Lasting Power of Attorney can potentially last for the rest of the donor's life.
There are two types of LPA in England and Wales:
- Property and Financial Affairs
- Health and Welfare
A Property and Financial Affairs LPA can allow your attorneys to help manage matters such as bank accounts, bills, pensions, investments and property.
Depending on how the LPA has been prepared, it can be used once registered while you still have mental capacity, with your permission.
A Health and Welfare LPA works differently. Your attorneys can only make decisions under it when you are unable to make the relevant decision yourself.
This could include decisions about your care, medical treatment, daily routine or where you live.
Neither type automatically expires after a set number of years.
Does a Lasting Power of Attorney End When Someone Dies?
Yes. A Lasting Power of Attorney automatically ends when the donor dies.
From that point, the attorney no longer has authority to deal with the donor's affairs under the LPA.
Responsibility for dealing with their money, property and estate instead passes to the executors named in their Will or the appropriate personal representatives.
This is one of the important differences between a Lasting Power of Attorney and a Will. An LPA operates during your lifetime, while your Will deals with what happens to your estate after your death.
Can You Cancel a Lasting Power of Attorney?
Yes. A donor can revoke their Lasting Power of Attorney while they still have the mental capacity to make that decision.
You may want to do this because your circumstances have changed, you no longer want a particular person acting as your attorney, or you want to make a new LPA.
Ending an LPA needs to be done correctly, particularly where the document has already been registered with the Office of the Public Guardian.
Can an Attorney Stop Acting?
Yes. There are circumstances where an individual attorney may stop being able to act even though the donor is still alive.
For example, an attorney may:
- Choose to stop acting
- Lose mental capacity themselves
- Pass away
- Be removed by the Court of Protection
- Become bankrupt or subject to a Debt Relief Order in certain Property and Financial Affairs LPAs
A divorce or dissolution of a civil partnership can also affect an appointment where the attorney is the donor's spouse or civil partner, depending on how the LPA has been written.
What happens to the overall LPA will depend on how the attorneys were appointed and whether any replacement attorneys were named.
For example, if you only appointed one attorney and did not appoint a replacement, the LPA may no longer be able to operate if that attorney dies or can no longer act.
This is one reason it is worth thinking carefully about your choice of attorneys when your LPA is prepared.
What Happens to an Enduring Power of Attorney?
Enduring Powers of Attorney (EPAs) were replaced by Lasting Powers of Attorney in October 2007.
You can no longer make a new EPA, but an EPA that was correctly made and signed before 1 October 2007 can still be valid.
Unlike an LPA, an EPA only deals with property and financial matters.
An existing EPA can continue to operate, subject to the rules applying to it, until it is cancelled or another event causes it to end. It will automatically end when the donor dies.
If you have an older EPA, it may be worth reviewing it alongside your wider arrangements to make sure it still reflects what you want.
How Long Does an Ordinary Power of Attorney Last?
An Ordinary Power of Attorney, sometimes called a General Power of Attorney, is usually used where somebody wants another person to manage certain financial matters for them temporarily.
For example, this could be useful while you are abroad, recovering from an illness or simply unable to deal with particular financial matters yourself.
An Ordinary Power of Attorney can be created for a specific period or purpose.
Crucially, it can only be used while the donor still has mental capacity. If the donor loses the ability to make their own decisions, an Ordinary Power of Attorney will no longer provide the attorney with authority to continue acting.
If you want somebody to be able to manage your affairs should you lose mental capacity in the future, a Lasting Power of Attorney is normally the appropriate arrangement.
Does a Power of Attorney Need Renewing?
A Lasting Power of Attorney does not need to be renewed every few years simply because time has passed.
However, it can still be sensible to review your arrangements occasionally.
Your circumstances may change, your relationship with an attorney may be different, or somebody you appointed may no longer be willing or able to act.
Reviewing your LPA does not necessarily mean you need to replace it. It simply gives you an opportunity to check that the people you appointed and the instructions you included still reflect your wishes.
What Happens If You Lose Capacity Without an LPA?
You can only make a Lasting Power of Attorney while you have the mental capacity to do so.
If you lose capacity without an appropriate LPA already in place, your relatives do not automatically receive legal authority to manage your affairs.
This is why putting an LPA in place is often best considered as advance planning rather than something to arrange only once it becomes necessary.
How Can John Fowlers Help?
At John Fowlers, we can help you understand the different types of power of attorney and put arrangements in place that suit your circumstances.
Our team can guide you through preparing and registering a Lasting Power of Attorney, including helping you decide who to appoint and how you would like them to act.
We can also advise you if you already have an LPA or older Enduring Power of Attorney and are unsure whether your existing arrangements still meet your needs.
For more information, visit our Lasting Powers of Attorney service page or contact our team to discuss your circumstances.