Enduring Powers of Attorney (EPAs)
Everyone who has a Will should consider having an EPA as well. Many people ask their Will Writers to draw them up whilst making new Wills, amending or upgrading old ones or because they think it may be prudent to get them done.
An EPA is a document you create, whilst still able to do so, which gives people you trust the power to deal with your financial affairs should you become incapable of doing so either through accident, illness or simply advanced years.
It makes sense to ensure that your affairs are managed sensibly whilst incapacitated but still alive, in much the same way you care about what happens to your estate after you die.
EPAs cost about the same as a simple Will and are very good value because without an EPA your representative would have to apply to the court of protection for permission to deal with your affairs, and this is the only way permitted.
This process can take 10 months and cost as much as £1,000, during which time your affairs may have fallen into disarray, and your finances seriously affected.
Moreover, it is possible that the person appointed by the court to deal with your affairs may not be the person you have chosen, but a court appointed official instead who can and will charge fees every time a cheque has to be written. Every time this official acts for you there will be a fee and a delay, and the fees are likely to be commensurate with those of solicitors charges.
Your EPA is the only way you can guarantee that your chosen representative will have the power to act for you. The existence of your EPA means they can act immediately you become incapacitated without wasting time and your money waiting for a court decision.
- Just like a Will, you must be mentally capable of making an EPA.
- Just like a Will, when you really need an EPA it is already too late!
An EPA is different from ordinary powers of attorney in that if specified, they can only be activated after you become incapable of managing your affairs, as pronounced in writing by a registered medical practitioner.
There are changes in the offing and the structure of EPAs will be changed. Sometime in the future they will be called 'Continuing Powers of Attorney' (CPAs). The court of protection representatives inform us that EPAs will still be acceptable to the court, but that the court will prefer eventually for EPAs to be upgraded to CPAs.
This should not deter you from making and EPA now because, just like a Will, if you don't have one when needed it can be a disaster for you and your family.
