Not many people do, but if you have ever thought about who would deal with your financial affairs should you become physically or mentally unable to do so, you may have wondered about setting up an Enduring Power of Attorney (EPA).
An EPA is a legal document that can be set up, so if for some reason you no longer have the sufficient mental capacity - whether through old age, accident or illness - to deal with your own affairs, you can arrange for someone else to take control of them on your behalf.
If you don't have an EPA in place, it is usually assumed that family members will automatically be able to handle your personal affairs, but the position may not be as straightforward as you think. Your relatives may have to transfer the control of all your assets to the Court of Protection, your bank and building society accounts and other assets would effectively be frozen, and there could be considerable difficulties in paying bills, providing for your dependants and running your business activities.
Having an EPA is just as important as having a properly drawn up will. In a recent article, The Times newspaper suggested that everybody over the age of 18 should have an EPA. This is now a matter of even more importance as changes in legislation taking effect from October 2007 mean that from then on no more EPA's can be created.
Once this date has passed, the new form of attorneyship will be a Lasting Power of Attorney (LPA). From the information released the creation of a LPA is going to be far more complex and costly.
If, however an EPA is created before this deadline, they will continue to be valid. The simple solution therefore is to set up an EPA now, which can be stored away safely until it is needed. The preparation and completion of an EPA is a fairly simple matter and should only involve costs from around £100 plus VAT.
When arranging an EPA there are a number of formalities that have to be satisfied at the time it is signed. These include the wording of the EPA itself, and in some circumstances confirming that the person setting up the EPA has the required mental capacity to do so.
Sydney Mitchell can take you through this process and can advise in more detail on the advantages of having an EPA. For more information, please contact Shelley Collingbourne or Jeanette Bowen on 0121 746 3320 or email s.collingbourne@sydneymitchell.co.uk.
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