Enduring Power of Attorney
Changes coming into effect in October 2007
At the moment, if you want to give someone else authority to deal with your
affairs, you can make an Enduring Power of Attorney (EPA). However, the law is
changing and from October 2007, EPA’s will be replaced by Lasting Powers of
Attorney (LPA).
Current proposals suggest that an LPA will be a significantly more
complicated document and also more expensive. For example, it will be necessary
to register the LPA at the court (for which a fee is payable) before the LPA can
be used for your financial affairs.
Therefore anyone considering making a Power of Attorney should act now and
make an EPA before October 2007. Please call us to arrange a free 30 minute
consultation with one of our specialist lawyers on 01707 657277.
What is Power of Attorney?
If you lose mental capacity because of dementia, you will need
someone else to manage your legal, financial and health affairs. Currently, you
can make an Enduring Power of Attorney, which means a person of your choosing
will be able to manage your finances for you
From October 2007, you will be able to make a Lasting Power of
Attorney; this will enable you to choose a person to make decisions regarding
your health and welfare, as well as your finances.
Who can I appoint as Attorney?
You can appoint your spouse, your children, other relatives or friends.
Alternatively, you can appoint a professional person such as a solicitor or an
accountant. You can also appoint more than one person. Please remember that your
attorney will have significant powers over your financial affairs so you should
have complete trust in the person you propose to appoint as attorney.
What happens if I don’t make a Power of Attorney?
If you become mentally incapable it will be necessary for a relative, friend
or your solicitor to obtain a Receivership Order at the Court of Protection.
Your Receiver will then have to liaise with the Court about the management of
your affairs. In practice Receivership through the Court of Protection is a
drawn out, bureaucratic and expensive procedure.
Will Enduring Powers of Attorney still be valid after October
2007?
Any EPA’s made before October 2007 will still be valid and can still be
used.
For further information about Enduring Powers of Attorney, please contact us
on 01707 657277. Or email us.
