Learning Material Sample

Trusts

4. Powers of Attorney

Chapter learning outcome: To understand substituted decision making, the impact of loss of mental capacity and related procedures

A Power of Attorney enables an individual (known as the donor) to allow someone (the attorney) to make decisions on their behalf in respect of their property and money. In this chapter, we look at the different types of power of attorney that can be arranged and how they affect the decision-making process for a client. We start by looking at Ordinary Powers of Attorney.

Ordinary Powers of Attorney

An Ordinary Power of Attorney is a legal document executed by the donor, giving the attorney the authori...

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...om they are dealing and the transaction they are performing remains valid.

If the power is to expire on a certain date specified in the deed, a purchaser who deals with the attorney after that date is deemed to have had notice of the revocation of the power and the transaction may not be valid.

An Ordinary Power of Attorney will come to an end if the donor becomes mentally incapable. Up until 1 October 2007, only an Enduring Power of Attorney could remain in place if the attorney became mentally incapacitated.

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