What is a power of attorney

A power of attorney is a legal document that allows one or more people to make decisions for another person about their money, property or health care. Depending on the type of power of attorney, they can be set up for long-term support, or short-term tasks.

There are two parties involved in a power of attorney.

The donor or granter is the person whose money, property or health and welfare is involved.

In England, Wales and Northern Ireland this person is called the donor. In Scotland they are called the granter.

The donor, or granter gives the attorney the power to manage their affairs for them. These affairs are set out in the power of attorney document.

The attorney is a trusted person who has been tasked with helping managing the money, property or care of the donor. Typically attorneys are a spouse, a family member or close friend.

They should be comfortable with the responsibility and be capable of managing the donor’s affairs.

Legal professionals or solicitors can also be given the role of an attorney. This could be helpful when there are complex affairs to be managed. Or, the donor would rather not ask friends or family. There are costs if you choose a legal professional to do this for you.

For information on what it means to be an attorney, visit the government website

GOV.UK - power of attorney (opens in new window)

If you have more than one attorney, you need to decide how they'll make decisions and manage your accounts.

This means all attorneys must:

• agree before taking action
• manage your accounts together.

If one attorney can no longer act, the power of attorney may no longer work unless a replacement attorney has been appointed.

This means:

• Any one attorney can manage your accounts without the other attorneys being involved.
• Attorneys can choose to make decisions together if they want to.

For example, one attorney can manage paying bills, while the other makes decisions on the estate.

If one attorney can no longer act, the others can usually continue acting for you.

You can also choose for your attorneys to make some decisions together and others separately.

Get information on choosing attorneys and their roles on GOV.UK (opens in new window)

In England and Wales, there are three types of power of attorney. The right one depends on your circumstances and whether you want support now, in the future, or both.

A Lasting Power of Attorney (LPA) is the most common type of power of attorney in England and Wales.

It must be set up while you have mental capacity. Once registered, it allows your attorney to make decisions on your behalf, even if you lose mental capacity in the future.

There are two types of LPA:

• Property and financial affairs - allows an attorney to help manage money, bills, savings and property.
• Health and welfare - allows an attorney to make decisions about care, treatment and day-to-day wellbeing.

Find out how to make, register or end an LPA on GOV.UK (Opens in new window).

A Continuing Power of Attorney works in a similar way to LPA.

It must be set up while you have mental capacity. Once registered, it allows your attorney to make decisions on your behalf, even if you lose mental capacity in the future.

There are three types in Scotland:

• health and welfare
• property and financial affairs
• combined - both welfare and financial.

Learn how it works and get set up on the Scottish government website - mygov.scot - power of attorney (opens in new window)

In Northern Ireland, the two types of power of attorney both cover property and financial affairs. The one you need depends on whether the donor has mental capacity.

GPA is used when the donor has mental capacity and wants someone to manage their property and financial affairs on their behalf.

It automatically ends if you lose mental capacity.

EPA is designed to provide long-term support and reassurance if your circumstances change unexpectedly.

Like a LPA in England and Wales, it must be set up while the donor has mental capacity. Once registered, it allows your attorney to make decisions on your behalf, even if you lose mental capacity in the future.

Learn more and set up a power of attorney on the nidirect website - nidirect.gov - power of attorney (opes in new window)

If you’re ready to set up a power of attorney document, follow the guide on our How to register a power of attorney page, or on GOV.UK - power of attorney (opens in new window)

When your power of attorney document is set up, you’ll need to register it with us before being able to manage the donor’s accounts.