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The Current Law on Enduring Powers of Attorney is to Change
We understand that not all of our clients currently have Enduring Powers of Attorney and we would like to bring the following to your attention.
Currently, if you wish to appoint someone else to deal with your affairs, you can make an Enduring Power of Attorney (“EPA”). This is a very simple procedure and the costs involved are not great when compared to the advantages of having an EPA.
Under the Mental Capacity Act 2005, the law is changing. From 1st October 2007 it will no longer be possible to make an EPA. EPAs will be replaced by Lasting Powers of Attorney (“LPA”).
LPAs will be significantly more complicated documents. It will be necessary to register the document with the Court of Protection before it can be used, regardless of whether or not you have lost your mental capacity. Consequently, the procedure for making an LPA is going to be more complicated and more expensive.
EPAs made and signed before 1st October 2007 will remain valid and can still be used. After 1st October 2007 no further EPAs can be made.
We advise clients to consider making an EPA now and contact us before the changes come into effect in October 2007
What is an Enduring Power of Attorney?
An EPA is a document whereby you appoint one or more people to deal with your affairs. The people appointed are called your Attorneys. Your Attorney can then help manage your affairs if you become mentally or physically incapable or are unable to manage yourself for some other reason.
Who can be appointed as Attorney?
You can appoint your Spouse, children, other relatives or friends or a professional person such as a Solicitor or Accountant. Essentially, it is fundamental to appoint someone who you trust, as your Attorney will have significant powers to deal with your affairs including your finances.
What powers can my Attorney have?
You Attorney can only do what you authorise them to do. You can give your Attorney full power to deal with your finances and affairs, or limit this power. You may even restrict the document only coming into effect if you lose your mental capacity. An EPA will not prevent you from managing your own affairs and provided you have not lost your mental capacity, it can be revoked at any time.
What if I do not make an EPA?
If you lose your mental capacity someone will need to apply to the Court of Protection to deal with your affairs. This is a long, expensive and intrusive procedure that can be avoided by having an EPA.
How much will an EPA cost to prepare?
A standard EPA costs £80.00 plus VAT (£94.00 in total) and is reasonable when compared to the potential costs you may incur with an LPA.
Call us now on 01604 609560 for more information
or email us at info@dfalaw.co.uk
