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In this video, the concept of a power of attorney in the UK is explained, focusing on its purpose and costs. A power of attorney is a legal document allowing a nominated individual, often a family member, to make decisions for someone who lacks mental capacity. This guidance covers England, Wales, and Northern Ireland, noting that Scotland has its own rules. The document is typically associated with financial matters, enabling the nominated party to manage banking and financial responsibilities. There are two types of power of attorney documents in the UK, and the video aims to clarify the setup process and related costs, emphasizing the importance of designating someone to act on your behalf if mental capacity deteriorates.