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WHAT IS A POWER OF ATTORNEY?

A Power of Attorney is a formal written authorisation by which one person (the donor) gives another person (the attorney) the power to act on his behalf and in his name. A Power of Attorney can be used in a wide range of personal, corporate and commercial situations if you need someone to act on your behalf to carry out a transaction or sign a document.

Powers of Attorney can be restricted or unrestricted and unlimited or limited in time. They need to be carefully tailored to fit the circumstances of your situation, the extent of the attorney's power and the position of third parties that may deal with the attorney.

DO I NEED A POWER OF ATTORNEY?

A Power of Attorney is a useful tool in a number of situations where you cannot be present in person to agree or sign documents recording a transaction.

If a number of signatories are required, appointing the same person as the attorney of each signatory can also avoid the need for all signatories to attend.

Appointing an agent can achieve similar results, but the lack of formality surrounding the appointment of an agent often means that third parties dealing with your representative will not be happy to deal with the agent. Furthermore, if documents need to be executed as deeds, an attorney rather than an agent is likely to be required.

A Power of Attorney should provide clarity and certainty to the relationship between the donor and attorney, and will enable third parties to deal confidently with the attorney.

A Power of Attorney is also useful if you wish to allow a trusted person to act on your behalf should you lose mental capacity to make decisions about your property or welfare. In this case an LPA will be needed.

WHAT IS A GENERAL POWER OF ATTORNEY?

A general power of attorney is a very short document whose form is prescribed by section 10 of the Powers of Attorney Act 1971; it is for this reason that they are often referred to as "section 10 powers of attorney". The document includes the following information:

1

The name and address of the donor.

2

The name and address of the attorney.

3

That the power is granted pursuant to section 10 of the Powers of Attorney Act 1971.

WHAT IS A SPECIAL POWER OF ATTORNEY?

Our special powers of attorney set out detailed provisions in respect of the attorney’s appointment including:

1

The name and address of the donor.

2

The name and address of the attorney.

3

The scope of the attorney's authority.

4

Details of the transaction and/or documents in respect of which the power is granted.

5

Whether the attorney is given authority to agree amendments or variations on the donor's behalf.

6

Whether the attorney can appoint a substitute to act in his place.

7

How long the power of attorney will last.

8

Whether or not the power of attorney is revocable.

9

Any remuneration payable to the attorney.

10

Whether the attorney has the right to be indemnified by the donor in respect of actions taken in accordance with the power granted.


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