Lasting Power of Attorney
What would happen if you could not look after your money every day or make your own financial decisions? This is a real risk to us all, so it is important to take steps now to choose someone you trust to manage and protect your financial wellbeing in the future.
An attorney is someone who can act on your behalf should you or a relative be unable to do so. If illness or incapacity hinders you from dealing with your own day to day affairs, you can prepare an Enduring Power of Attorney (EPA) to appoint someone committed to looking after your best interests.
An EPA is a legal document that enables someone (the donor) to appoint one or more persons (attorney(s)) to manage their financial affairs and property, either now or in the future.
A receivership is the fall back for someone who has lost the capacity to look after his or her own affairs where no EPA exists. This means that that person's financial capital and affairs will be managed by the Court of Protection in London, typically through a relation who will be the receiver and who will receive income to apply it for the benefit of the person concerned whilst the Court of Protection will control the capital. Dealing with the Court of Protection can be expensive and delays can arise when least needed.
To make an EPA you need to identify someone you trust, typically your spouse, partner or child who will act as your attorney for you. So long as the power of attorney takes the form of an "enduring power" your attorney will be able to continue to use it even if you lose your capacity to look after your financial affairs through, for example, a stroke, a major head injury or with the onset of old age.
The Mental Capacity Act will come into force in April 2007 and will enable people to choose somebody to make decisions regarding their health and welfare, as well as manage their financial affairs. Lasting Powers of Attorney dealing with financial affairs and matters of health and welfare will need to be entered into instead of EPAs after October 2007.
Click here to read some commonly asked Questions and Answers about Enduring Powers of Attorney.
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