Enduring Powers of Attorney
Law brings new limitations
From October 2007 the law relating to Enduring Powers of Attorney (EPAs) changed, limiting the power that an Attorney can wield over the subject’s affairs.
It is something that few people wish to think about, but it makes sense to have in place a legal document that gives someone else the power to look after your affairs should you become frail or mentally incapacitated through age, illness or accident. Until now, that document has been an Enduring Power of Attorney, but after October this year it is not possible to make a new EPA, although existing ones will remain enforceable.
Instead, the Department for Constitutional Affairs will administer what will be known as a Lasting Power of Attorney. The plus side is that the new document will limit the power of your chosen Attorney and there have in the past been well publicised cases of abuse of power and it will allow you to appoint more than one Attorney, for example someone to look after your health and someone else to look after your finances. The new Lasting Power of Attorney consists of two documents, each around 25 pages in length. One document relates to property and affairs, whilst the other deals with personal welfare.
If you have already drawn up an EPA you don’t need to take any action unless there is anything in that document you want to change. Your existing EPA will be valid indefinitely. If, however, you have never made an EPA you may want to think about doing so before the law changes. Either way, it’s important to think about what could happen during the course of your life, even if you are relatively young and healthy.
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This article is for your general information and use only and is not intended to address your particular requirements. This article is based on our understanding as at the 11 October 2007. The content of the article should not be relied upon in its entirety. Although endeavours have been made to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No individual or company should act upon such information without appropriate professional advice after a thorough examination of their particular situation. Any references made to the Pre-Budget Report may be subject to the Finance Bill becoming law. |