A power of attorney allows one person (the donor) to authorise another (the attorney) to act on their behalf, and questions around general powers of attorney vs lasting powers of attorney commonly arise when people begin considering lifetime planning. These documents play an important role where assistance is needed with financial matters or where there is a wish to plan ahead for the possibility of losing mental capacity.
Although these two types of power of attorney are often discussed together, they are designed for different situations and operate in very different ways.
General powers of attorney
A general power of attorney (sometimes referred to as an ordinary power of attorney) is governed by the Powers of Attorney Act 1971. It allows the donor to appoint an attorney to deal with their property and financial affairs.
In practice, general powers of attorney are usually used for short‑term or practical reasons. They are usually put in place where the donor needs someone else to deal with financial matters for a limited period, for example while they are abroad, unwell, or unable to attend to matters personally.
The authority granted can be wide covering all financial affairs or narrow. It may allow an attorney to operate bank accounts, pay bills, deal with investment providers, sign documents for a particular transaction, or handle general financial administration.
The main limitation is that a general power of attorney only remains effective while the donor has mental capacity. If the donor loses capacity, it comes to an end automatically.
Because of this, a general power of attorney is not suitable as a long‑term solution and is not a replacement for a lasting power of attorney.
Lasting powers of attorney
A lasting power of attorney is created under the Mental Capacity Act 2005. Its key feature is that it can continue to be used after the donor has lost mental capacity.
There are two types of LPA. A Property and Financial Affairs LPA covers matters such as bank accounts, investments, bills, and property. A Health and Welfare LPA allows attorneys to make decisions about care arrangements, medical treatment, and living arrangements, including (if specifically authorised) decisions about life‑sustaining treatment.
An LPA must be made using the prescribed form and registered with the Office of the Public Guardian before it can be used.
General powers of attorney vs lasting powers of attorney – the main distinction
The central issue when comparing general powers of attorney vs lasting power of attorney is how the documents operate if the donor loses mental capacity.
A general power of attorney cannot continue once capacity is lost. An LPA is specifically designed to do so.
There is also a difference in scope. A general power of attorney can only be used for property and financial affairs. It cannot authorise decisions about care or medical treatment. A Health and Welfare LPA is the only way to formally appoint someone to make those decisions.
Formality and ease of use
General powers of attorney are relatively simple documents. They do not require registration and are often very short. Provided the document follows the statutory form under Schedule 1 of the Powers of Attorney Act 1971 (or a form to similar effect), it only needs to be signed by the donor and witnessed.
LPAs are more formal. They must include certification that the donor understands the document and is not acting under undue pressure. They must also be signed by the attorneys and registered with the Office of the Public Guardian before they can be used.
This difference explains why general powers of attorney are sometimes used where speed or simplicity is needed, although their use is limited.
When is a general power of attorney useful?
A general power of attorney is most appropriate where the donor has capacity and needs temporary assistance with financial matters. This could include:
- extended travel abroad;
- hospital treatment or reduced mobility;
- temporary absence from home;
- the need for help with a particular transaction, such as a house sale; or
- business convenience.
One situation that commonly arises in practice is where a Property and Financial Affairs LPA has been signed but is awaiting registration. Because an LPA cannot be used until registration is complete, a general power of attorney can be used during that interim period, provided the donor still has capacity.
This can be a practical solution, but it carries risk. If capacity is lost before the LPA is registered, the general power of attorney will end automatically.
When is a lasting power of attorney more appropriate?
An LPA is always the appropriate document where long‑term protection is required.
This often forms part of later‑life planning, it may also be relevant following a diagnosis of a progressive condition or simply as a precaution. An LPA allows the donor to choose who will make decisions for them in advance, rather than leaving family members to apply for a deputyship via the Court of Protection.
Conclusion
The difference between general powers of attorney vs lasting powers of attorney is primarily about how long the authority is intended to last. A general power of attorney can be useful for short‑term financial arrangements while capacity is retained. An LPA is the appropriate document where ongoing authority may be needed if capacity is lost.
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