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What is an enduring Power of Attorney and why should i make one now ??

What is a Lasting Powers of Attorney ??

What is an Enduring Power of Attorney?.... and why should I make one now ?? 

An Enduring Power of Attorney (often shortened to EPA) is a document whereby a person (the Donor) gives a power to somebody else (their Attorney) to enable them to manage the Donor’s property and affairs.

Why would someone want to do that ?

EPA’s are often made when someone believes that in the near future that they will not be able to manage their own affairs, through ill health, lack of mental faculties or old age. ·

Does that mean that I should wait until I feel that I may be unable to cope to make an EPA?

Certainly not! The best time to make an EPA is when you think you will not need one! Think of it as an insurance policy, you hope that you never need to call on it, but if you do you will be pleased that you had the foresight to make an EPA.

Does the EPA come into effect straight after it has been signed?

Usually yes, but you can put certain restrictions into the document that will detail when the EPA can be used

Who should act as my Attorneys?

You can have any number of Attorneys, but the key factor in choosing someone to be your Attorney is that you trust them implicitly because they can do anything with your money and affairs that you can, even sell your house so long as any actions they take are in the Donor’s best interests.

Do the Attorneys all have to act together?

If you have more than one Attorney they can act jointly or jointly and severally. Jointly means that all Attorneys have to join in to sign documents, cheques etc. Jointly and severally means that any one of the Attorneys can sign documents, cheques etc

Which is best?

Jointly gives more security, but can often be impractical, also if one of the Attorneys is unable to act or dies then the EPA becomes invalid. Jointly and severally is practically easier on a day to day basis. The key matter to bear is mind is “Do I trust this person implicitly ?” If the answer is “Yes”, you can appoint with confidence. If the answer is “no” or “maybe”, then think of another Attorney!

Who should be my Attorney(s)?

Many people choose family, or sometimes close friends. If there is no one whom you trust enough to manage your property and affairs, you could appoint a solicitor.

What if I change my mind?

As long as you retain your mental faculties you can revoke your EPA at any time.

What are the Attorney’s duties?

An Attorney has to act in the best interests of the Donor at all times. They also have a duty to keep accounts. The Court of Protection looks after the interests of people who are having their affairs managed by Attorneys and can order the Attorney to produce accounts for money spent on the Donor’s behalf. They also register the Power when the Donor become mentally incapable.

Why is it an Enduring Power of Attorney?

An ordinary Power of Attorney ceases when the Donor becomes mentally incapable, however an Enduring Power endures the Donor’s mental incapacity and can be used up until the Donor’s death.

Can anybody make an EPA?

So long as the Donor is mentally capable of understanding the nature and effect of the document any adult can make an EPA.

What happens if I have not made one and become mentally incapable of doing so?

If someone is mentally incapable of making an EPA then a Receiver has to be appointed by the Court of Protection. This can take some time and cost many hundreds of pounds.

How do I make an EPA?

Contact Thatcher & Hallam on 01761 414646 to make an appointment to see one of our team of specialists who will be able to advise on your particular circumstances.

How much will it cost?

If there are no complications a single EPA costs £90 plus VAT and a double EPA costs £110 plus VAT.

What is a Lasting Powers of Attorney ? 

From 1st October 2007 under The Mental Capacity Act 2005 Lasting Powers of Attorney will replace Enduring Powers of Attorney. Existing Enduring Powers of Attorney, whether registered or not, will still be valid after October 2007, but it will not be possible to create a new Enduring Power of Attorney.

The main difference between an Enduring Power of Attorney and a Lasting Power of Attorney is that the Lasting Power of Attorney has two separate parts, one part to be used to make decisions concerning medical treatment and accommodation choices, and the other part to be used to make decisions concerning property and affairs. Clients may choose to make either or both parts of the Lasting Power of Attorney. The Enduring Power of Attorney is a single document which only deals with the Donor’s property and affairs.

The other major difference is that the Lasting Power of Attorney must be registered with the new Office of the Public Guardian before it can be used, unlike the Enduring Power of Attorney which only needs to be Registered with the Court of Protection if the Donor of the Power loses or is losing mental capacity.

Whilst an Enduring Powers of Attorney can only be used to make decisions concerning property and affairs it is possible to make a separate document, an Advance Directive, often known as a Living Will, concerning decisions about medical treatment in the event that the person is unable to make their own decisions.

The forms for Lasting Powers of Attorney have yet to be published, but it is likely that the document will be more complicated and it will need to be registered before it can be used, thus incurring further expense.

Contact Ken Saunders, Elizabeth Neame or Pat Powell on 01761 414646 today for further information and to discuss your particular needs.