Lasting Powers of Attorney
Since 1985 it has been possible to anticipate and plan for a person's possible loss of mental or physical capacity by setting up an Enduring Power of Attorney (EPA). EPA's allow individuals (donors) to appoint one or more people to deal with their financial affairs if they become mentally or physically incapable. EPA'S are usually set up to be a worst case scenario document, only needing to be used if an individual loses capacity.
If there is no EPA in such circumstances the family would need to apply to the Court of Protection for an appointment of a Receiver to deal with the affairs of the person who is incapacitated. This is a costly lengthy process and involves reporting back to the Court on a regular basis.
An EPA is a convenient document which many elderly people sign to simplify their lives (and the lives of their immediate families) and to mitigate the consequences, if and when they lose capacity. An EPA is easy to set up at only a modest cost. It may never be used but if it is needed it will be a great boon.
As in the past a small number of EPA's have been used fraudulently the Government has decided to withdraw EPAs in October this year. Lasting Powers of Attorney (LPA) will then come into effect.
On the positive side an LPA allows for the appointment of both a health and welfare attorney and a financial attorney.
On the negative side however, an LPA has to be registered with the Court of Protection immediately and before it can be used. At the moment an EPA only needs to be registered when the donor loses capacity. This will mean an immediate increase in the costs of set up which will be incurred whether or not the LPA is ever used. The forms for LPA's are much longer and more involved meaning more legal advice and cost.
The overall cost of setting up an LPA will be substantially more than that involved with an EPA, depending on all the details which have to be discussed and because of the immediate registration fees. Completing an EPA is much more modest in cost. If your main concern is to appoint a person or persons to deal with your financial affairs, if you become mentally incapable, or you simply want a family member to assist you now, we would strongly recommend you consider making an EPA in the immediate future. Any EPA drawn up before October 2007 would remain valid.
For further information please visit our Lasting Power of Attorney section of this site
