Powers of Attorney - Act now!
17th August 2007
An Enduring Power of Attorney (EPA) is a legal document that allows another named individual to deal with your financial affairs in the event of you becoming incapacitated.
We recommend that all of our clients have these documents in place, as the alternative method for a spouse or trusted friend obtaining authority to act on your behalf is a time-consuming legal process; with costs that can run to several thousand pounds. This is true even if you are married or in a civil partnership.
What’s changing?
On 1st October 2007, EPAs will be replaced by Lasting Powers of Attorney (LPAs). Whilst it will not be possible to sign new EPAs after this date, any existing ones will continue to remain legally valid.
Why is the change important?
As from October it is going to become more expensive to put this type of legal safeguard in place. Under both systems (EPA and LPA) there are two stages to the process of granting a power of attorney. Firstly the legal document must be drawn up, and then it must be registered with the Court of Protection in order for it to become effective. Under the EPA system the two stages can be separated, meaning that the cost of registration only needs to be incurred if you actually become incapacitated. However after 1st October all new Lasting Powers of Attorney must be registered immediately, meaning that in all cases the cost of registration (expected to be in the region of £150) must be incurred. The change will effectively double the initial cost of putting this key safeguard in place.
However, the introduction of LPAs will also bring one important benefit. Under the EPA system the authority that is granted only relates to one’s financial affairs. The scope of powers granted via an LPA will be broader, incorporating the ability for a loved one to make decisions relating to welfare and care issues on behalf of the incapacitated individual. If you have concerns relating to this area then a Lasting Power of Attorney may be the more appropriate option for you. It is important to note that if you already have an EPA in place then there is nothing to stop you putting an LPA in place at a later date.
What should you do next?
If you do not already have an EPA in place then you should contact your solicitor to discuss whether an EPA or an LPA is going to be the right choice for you. Regardless of the outcome of that discussion, it is important that you have it before 1st October 2007 so that both options are available to you.
If you do not have a relationship with a solicitor who specialises in this field then please contact us and we will be happy to provide you with details of one who does.