R01 Powers of attorney and mental capacity: free practice questions
5 free questions on Powers of attorney and mental capacity, part of learning outcome 3 (Legal concepts). Pick an answer to check it, or open the answer to see why each option is right or wrong.
Question 1 of 5
Which events will normally revoke an ordinary power of attorney?
1. The donor's death
2. The donor's bankruptcy
3. The donor losing mental capacity
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The answer is D: 1, 2 and 3
An ordinary power of attorney ends on the donor's death, bankruptcy, loss of mental capacity or expiry of any set period, and the donor can cancel it at any time.
Why the other options are wrong
A
Death of the donor also revokes the power.
B
The donor's bankruptcy also revokes an ordinary power.
C
Loss of mental capacity also ends an ordinary power, which is why enduring and lasting powers were introduced.
Question 2 of 5
Why was the Enduring Powers of Attorney Act 1985 introduced?
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The answer is C: To let a power of attorney continue after the donor lost mental capacity
An ordinary power ends when the donor loses capacity, just when it's most needed. An EPA continues after incapacity once registered. EPAs can't cover healthcare decisions.
Why the other options are wrong
A
EPAs don't cover healthcare; lasting powers of attorney can.
B
Attorneys under an EPA are generally forbidden from making gifts.
D
A power of attorney deals with affairs during life; it doesn't replace a will.
Question 3 of 5
Under the Mental Capacity Act 2005, what can a lasting power of attorney (LPA) cover?
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The answer is D: Health and welfare, and property and financial affairs, in separate documents
An LPA can cover health and welfare decisions and property and financial affairs. If both are wanted, two separate documents are needed.
Why the other options are wrong
A
Covering both areas needs two separate LPAs.
B
LPAs can also cover property and finances.
C
LPAs can also cover health and welfare decisions.
Question 4 of 5
An attorney under a financial decisions LPA wants to make large gifts from the donor's estate to reduce inheritance tax. What is the position?
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The answer is C: Only reasonable customary gifts are allowed unless the court authorises more
Under s.12, a financial decisions LPA allows only reasonable gifts on customary occasions to people connected with the donor, and to charities. IHT planning through an LPA is rarely possible, though the Court of Protection can authorise other gifts.
Why the other options are wrong
A
Family agreement doesn't extend the attorney's limited power to make gifts.
B
Reducing IHT doesn't make larger gifts permissible.
D
Gifts to the attorney themselves aren't what the rules allow.
Question 5 of 5
Under the Mental Capacity Act 2005, which is NOT one of the tests of whether someone can make a decision for themselves?
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The answer is C: Can they make the decision their family would agree with?
A person is unable to decide if they can't understand, retain, use or weigh, or communicate the information. Whether others agree with the decision isn't a test.
Why the other options are wrong
A
Understanding the relevant information is one of the tests.
B
Evaluating the information to reach a decision is one of the tests.
D
Retaining the information is one of the tests.
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