Ordinary powers of attorney

An ordinary power of attorney or general power of attorney is a basic document that gives the attorney the power to deal with the donor’s financial affairs. It can be as wide reaching or as limited as the donor wishes. An attorney cannot generally exercise any of the functions they have as a trustee or personal representative but such authority can be delegated specifically by way of a trustee power of attorney under section 25 of the Trustee Act 1925 (TA 1925). An ordinary power of attorney will be revoked automatically by the mental incapacity of the donor.

Ordinary powers of attorney are governed by the Powers of Attorney Act 1971 (PAA 1971) as to, for instance, their execution and revocation. However, in respect of some matters, such as capacity, the rules relating to the creation of a power of attorney can still be found in common law.

Creation of the power

In order to create a valid ordinary power of attorney, the donor must be capable of understanding the nature and effect of the power. The power of attorney must be executed

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Private Client News

MoJ publishes factsheet on applying for payment out of a fund following the death of a Court of Protection client

The Ministry of Justice has published a new factsheet (CFO 401) detailing the process of applying for payment out of a fund held by the Court Funds Office following the death of a Court of Protection client. The framework, which applies to England and Wales, outlines the specific form to be completed, the necessary supporting documentation, and the procedure for applying for payment of inheritance tax and funeral expenses.

Finance Bill 2025 update: Public Bill Committee to begin in January

The Public Bill Committee is expected to begin scrutiny of the Finance Bill on 28 January 2025. Comments on the Bill are invited before then, and revised explanatory notes have been issued to cover the Government’s proposed Pillar 2 amendments.

Private Client weekly highlights—19 December 2024

This week’s edition of Private Client highlights includes: (1) HMRC updates form IHT100f; (2) Knight v Barnsley, which held that the Court of Protection did have jurisdiction to determine a dispute over a claimant’s deputy’s release from reverse indemnity undertakings; (3) Manolete Partners Plc v White, in which the Court of Appeal held that occupation pension benefits are generally inalienable; (4) Hannah v Revenue and Customs Commissioners, where the First Tier Tribunal (Tax) permitted the amendment of grounds of appeal to include ground that the transfer of assets abroad regime is incompatible with EU law; (5) Hirachand v Hirachand, a decision of the Supreme Court which makes it clear that success fees cannot be included in awards for financial provision under the Inheritance (Provision for Family and Dependants) Act 1975; and (6) the Chancellor has confirmed that the Spring Forecast will take place on 26 March 2025.