Enduring Powers of Attorney - Catch Them While You Can -

01 April 2007

Setting up suitable assistance for when you may be unable to deal with your own affairs should always be considered as early as possible.

An EPA as it is known, gives you the ability to delegate the job of dealing with your financial and administrative affairs to one or more other people. It can be considered a bit like an insurance policy – you sign it in the hope that you will never need it but if you do, it becomes extremely useful.

An EPA is usually effective from the date it is signed, but its application can be delayed. The scope of authority granted can also be restricted if you wish, although it is often found that the wider the flexibility the more useful it is. Whilst the document itself is relatively straightforward to complete, it is imperative that correct advice is taken as to the impact of signing an EPA and what restrictions or conditions could be included. Advice can also be given on your choice of attorneys and the extent of their powers. You should also be aware of how the document can be cancelled, and the impact of registration on the onset of mental incapacity.

New legislation has been introduced in the Mental Capacity Act 2005. From October 2007 you will no longer be able to sign a new EPA as this document will be replaced by a Lasting Power of Attorney (LPA). In addition to delegating powers to help with financial and administrative affairs, an LPA also gives you the opportunity to name someone to make decisions about your personal welfare and health care, and consent to medical treatment.

One of the main differences from an EPA is that an attorney under an LPA cannot act unless and until it is registered with the Office of the Public Guardian. An EPA can be effective straightaway and it only needs to be registered if your attorneys consider you are becoming or you have become mentally incapable of dealing with your own affairs. Also, with an LPA a ‘suitable person’ (as defined in the regulations covering LPAs) must certify at the time of signing that you have the necessary level of understanding to sign an LPA.

The Government has confirmed that EPAs completed prior to the introduction of LPAs next October will continue to be effective without the need to complete an LPA. We consider that signing an EPA puts you in the best position to be able to decide whether to stick with an EPA or complete an LPA.

We recommend that if you wish to have the protection this document affords, you sign an EPA while you still can. The cost is low for what could turn out to be vital protection.

For more information please contact Sarah Bogard, Associate & Chartered Tax Adviser.
 

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