You’ve probably heard of Lasting Powers of Attorney (LPAs), which enable you to appoint others to look after your financial and property affairs should you lose capacity.
However, LPAs are not the only way of granting authority for someone else to manage your affairs.
Here’s what you need to know about Ordinary Powers of Attorney.
What are Ordinary Powers of Attorney?
Ordinary Powers of Attorney (OPAs) are temporary legal documents that enable you to grant authority to one or more people – “the Attorneys” – to look after and manage your affairs.
There are two types of OPA: General and Specific.
- A General Power of Attorney gives your Attorney broad authority to manage all your financial affairs. This can be helpful if you are travelling for an extended period, undergoing medical treatment, or simply want someone to assist you temporarily with day-to-day financial tasks.
- A Specific Power of Attorney is limited to particular tasks or transactions, such as selling a property or managing a specific bank account on your behalf.
Depending on your circumstances, either option could be suitable. We can help you determine the right fit.
What conditions are required for an Ordinary Power of Attorney?
It’s important not to view it as a substitute for an LPA. An OPA only operates while you have mental capacity. Once that is lost, the OPA immediately ceases to be valid.
An LPA provides much wider protection and is designed to remain effective if you lose capacity. For most people, putting both types of documents in place is a sensible part of long-term planning.
It’s also worth noting that an OPA does not take away your ability to act on your own behalf. It runs in parallel, meaning you retain full control and decision-making authority for as long as you are able.
You’ll decide who will act as your Attorney(s) and you can cancel OPA at any time.
How does an OPA differ from an LPA?
Rather than conferring a general power, an OPA can limit the Attorney(s) to very specific acts.
For example, you may use an OPA to allow someone to sell a property on your behalf.
At the end of the OPA’s time period, or at the conclusion of a particular transaction, the OPA ceases, and the Attorney(s) will have no further power to act on your behalf.
Manage your affairs with Palmers Law
An OPA is a very useful way of appointing someone to help manage your financial affairs on a temporary basis.
However, it is important that you understand fully the implications of an OPA and how to ensure clarity on what your Attorneys can and cannot do.
Independent legal advice is vital for protecting your interests and making sure an OPA is right for you.
For more information about Ordinary Powers of Attorney, get in touch with our expert team today.