Issue 2 - Aug 2007. Enduring Powers of Attorney

Have you considered who would deal with your financial affairs if you become physically or mentally unable to do so yourself, whether through old age, accident or illness?

This month we look at the changes to the law occurring in October which means that from that time no further Enduring Powers of Attorney can be created. However, any in existence at that time will remain valid.

What is an Enduring Power of Attorney (EPA)?

If for some reason you are no longer able to handle your financial affairs, an EPA is a legal document that can be drawn up that will allow an appointed person of your choice to step in and deal with these matters on your behalf.

What happens if I don't have an EPA?

If you do not have an EPA in place, and for some reason you no longer have the mental capacity to deal with your own affairs, your relatives may have to transfer the control of all your assets to the Court of Protection, this can take many months to arrange and the costs involved are high and ongoing. Your bank and building society accounts and other assets would effectively be frozen, and there could be considerable difficulties in such everyday matters as paying bills, providing for your dependants and business activities.

In a recent article, The Times newspaper suggested that everybody over the age of 18 should have an EPA.

How do I set up an EPA and how much does it cost?

Setting up an EPA is a relatively straightforward matter and should only involve costs from £100 plus VAT. It is just as important as having a properly drawn up will.

With changes in legislation, setting up an EPA is now a matter of more importance due to the October deadline.

What will be replacing an EPA?

The new form of attorneyship will be a Lasting Power of Attorney (LPA). From the information released so far, the creation of a LPA is going to be a far more complex and costly process.

If I set up an EPA now will it still be valid when the changes come in?

Yes, all EPA's that are created before this deadline will continue to be valid.

What do I do now?

We can take you through all the legal and other formalities, and also advise in more detail on the advantages of having an EPA. Please call Shelley Collingbourne or Jeanette Bowen on 0121 746 3320 for specialist advice.