How would you manage your finances if you could not deal with them yourself for a while? Perhaps you are planning a long trip abroad, facing a hospital stay, or finding it hard to get out and about. In situations like these, an Ordinary Power of Attorney (OPA) may help. This guide explains what an Ordinary Power of Attorney is, how it works, how it differs from a Lasting Power of Attorney, and how to make or end one.
What is an Ordinary Power of Attorney?
An Ordinary Power of Attorney, sometimes called a General Power of Attorney, is a legal document. It lets you (the donor) appoint someone you trust (the attorney) to deal with your financial affairs. It is designed for times when you still have mental capacity but need practical help.
An OPA only covers money and property. It cannot be used for decisions about your health or care.
When might you need an OPA?
An OPA can be useful when:
- you are travelling for a long time, so someone can pay bills and deal with your bank while you are away
- you are in hospital or recovering, so you can focus on getting better
- you have mobility problems that make it hard to visit the bank or deal with paperwork
- you need help with a specific task, such as selling a property while you are abroad
Remember, an OPA is for situations where you still have capacity. If you are thinking about the possibility of losing capacity in the future, a Lasting Power of Attorney (LPA) is the right document.
What can an Ordinary Power of Attorney cover?
You decide how wide the powers are. For example, an OPA can allow your attorney to:
- pay bills and manage your bank accounts
- collect benefits or pension payments
- sell or let a property
- deal with investments
You can give general powers over all your financial affairs, or limit the OPA to particular tasks. For instance, you could let your attorney run your bank account but not sell your home.
OPA vs LPA: the key differences
Mental capacity: an OPA only works while you have mental capacity. It stops working if you lose capacity. In contrast, an LPA is designed to continue if you lose capacity.
Registration: an OPA does not need to be registered, so it can be used as soon as it is properly signed and witnessed. However, an LPA can only be used once the Office of the Public Guardian has registered it, which currently takes around 8 to 10 weeks.
Scope: an OPA covers financial decisions only. An LPA can cover property and financial affairs, or health and welfare.
Many people choose to have both. The OPA covers a short-term need, while the LPA is ready for the long term. You can read more about the GOV.UK rules on powers of attorney.
Making an Ordinary Power of Attorney
An OPA must be made as a deed. In practice, this means:
- it must be in writing and make clear that it is a deed
- you must sign it in the presence of a witness, who also signs
- the witness should be an independent adult, not the attorney or the attorney’s spouse or partner
The document should also set out:
- your full name and address
- the full name and address of each attorney
- the powers you are giving, and any limits on them
- when it starts, and when it ends if it is for a fixed period
- if you appoint more than one attorney, whether they must act jointly or jointly and severally
A simple general power can follow the short form in the Powers of Attorney Act 1971, which you can read on legislation.gov.uk. However, banks and other organisations often look closely at the wording. So, a clearly drafted OPA reduces the risk of it being refused.
A.D.E. Wills prepares Ordinary Powers of Attorney for a fixed fee, shown on our LPAs Pricing page.
Your attorney’s responsibilities
Your attorney must act in your best interests and only within the powers you have given. Unless the document allows it, they should not:
- make gifts from your money
- mix your money with their own
- benefit personally from their role
Also, they cannot make decisions about your health or care. Your attorney should keep records of what they do, because you can ask to see them at any time.
Ending an Ordinary Power of Attorney
An OPA ends:
- on the end date in the document, if there is one
- if you revoke it
- if you lose mental capacity
- if you die
To revoke an OPA while you have capacity, it is best to make a deed of revocation. Then, give a copy to your attorney and tell any banks or organisations that have been dealing with them. You should also ask for the original OPA and any copies back.
If you lose capacity, the OPA stops. A registered LPA could then be used. Without one, your family may need to apply to the Court of Protection for a deputyship order, which is usually slower and more expensive.
Sensible safeguards
An attorney under an OPA can have a lot of control over your money, so choose carefully. You might also:
- limit the powers to what is genuinely needed
- set an end date
- appoint two attorneys to act jointly on larger decisions
- review the arrangement regularly
Frequently asked questions
Can I appoint more than one attorney?
Yes. You can say whether they must act jointly (always together), jointly and severally (together or separately), or jointly for some decisions and jointly and severally for others.
Can I still make my own decisions?
Yes. An OPA does not take away your right to manage your own affairs. You can keep making decisions for as long as you have capacity.
How long does an OPA last?
It lasts for the period you choose, or until you revoke it, lose capacity or die.
Talk to A.D.E. Wills
If you think an Ordinary Power of Attorney might help, or you are not sure whether you need an OPA, an LPA or both, Edward is happy to talk it through in a free initial chat. Call 01865 507174, email info@adewills.co.uk, or read more about our powers of attorney services.
