General Power of Attorney
What if you were unable to manage your property or financial affairs, perhaps through an accident, illness, or even foreign travel?
You may still retain the capacity to make decisions and direct your affairs, but, without an official authority signed by you no other person, not even your spouse, may attend meetings, act, or sign on your behalf for anything in your sole name.
This can lead to unforeseen problems regarding many things like dealing with domestic utility suppliers, insurance claims, the sale or purchase of property, benefit claims, or managing ISA's, or other accounts at the end of a fixed term investment, etc. And, for those in business, dealing with staff pay and returns, signing off accounts, tax affairs, banking issues such as overdraft facilities; any or all may become disrupted.
A General Power of Attorney (GPA) will allow you to appoint relatives, friends, colleagues or, a professional, to act on your behalf in a legal, financial, or personal capacity. This could be for an unlimited period until cancelled by you, for a limited period, or, for a specific purpose.
Once signed, a GPA is often simply stored locally for use as and when necessary, however, if your mental capacity is lost, for whatever reason, the GPA will no longer be valid and its use thereafter would be illegal.
A Lasting Power of Attorney for Property and Financial Affairs, once registered, covers all of the same issues, but, remains valid during any period of mental incapacity and is therefore a more comprehensive document.
