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

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