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ENDURING POWERS OF ATTORNEY 

An Enduring Power of Attorney (“EPA”) is a very useful document, which allows a person to grant legal authority to another person (“the Attorney”) so that they can look after their affairs.   This power continues after the person making the EPA becomes mentally incapable. 

• EPAs have proved to be popular because they are simple and flexible.
   
• Most people only consider making an EPA when they are elderly or when diagnosed with an illness.
   
• An EPA can be used by the Attorney to take temporary charge of someone’s affairs if they are finding them difficult to manage.   Reasons for this could include a long holiday or a period of work abroad or even hospitalisation.
   
• Then a person becomes mentally incapable without an EPA in place, it is currently necessary to apply for a Receivership through the Court of Protection (“the Court”), which is expensive and time consuming.

After October 2007, under the Mental Capacity Act 2005, it will no longer be possible to make EPAs.   They are to be replaced by Lasting Power of Attorney (“LPA”).  EPAs made before October 2007 will however, be valid and can continue to be used after this date.

•         LPAs will have to be registered before they can be used (whether or not the person has lost their mental capacity) and until the registration happens, the Attorney will not be able to help. 

•         The LPA will be a more elaborate and lengthy document. 

•         As a result of these changes, costs associated with the new scheme are bound to increase significantly both in terms of legal time and of Court fees. 

In conclusion, it is advisable to make an EPA before October 2007.   The new LPA promises to be more complicated and expensive than the present arrangement.  It is almost certain to be riddled with technical problems until the system is established and tested.  We recommend that every adult takes urgent legal advice on making an EPA because after October 2007 they will no longer be able to. 

Please contact Victor Horsfall-Turner  on his direct line 01202 544125 for more information and a quote.