The need to make a will is something that most people are aware of. Fewer people, however, consider what would happen if, for some reason, they were no longer able to manage their affairs. This could be due to a long period of absence abroad or mental or physical incapacity.
Prior to 1st October 2007 it was possible to create an Enduring Power of Attorney (EPA). This is a document whereby a person (donor) appoints another person(s) (the attorney) to act on their behalf in relation to their financial affairs if they were unable to do so themselves.
EPAs have now been replaced by Lasting Powers of Attorney (LPAs). These are broader in scope and come in two forms.
- The Property and Finance LPA is similar to the EPA in that it allows a person to appoint attorneys to look after their financial matters for example operating a bank account or buying and selling property.
- The Personal Welfare LPA allows a person to appoint attorneys to make decisions on such issues as future health care and living arrangements. Attorneys may also be given the power to give or refuse consent to the carrying out or continuation of medical treatment.
The donor can appoint one attorney or more than one and should specify whether, if there is more than one attorney, the attorneys should act together or separately.
An attorney cannot act under an LPA unless it is registered with the Office of the Public Guardian. There is also a requirement that the LPA be certified by an independent person confirming that the donor understands the power and importance of the LPA and is not under any pressure to make it.
Once a Property and Finance LPA is registered the attorney has the authority to act in accordance with the terms of the LPA. An attorney under a registered Personal Welfare LPA however has authority to act provided that the donor cannot make the required decision him/herself.
A donor can revoke their LPA at any time as long as they have the mental capacity to do so.
We are happy to offer advice on the new LPAs. Please contact us if you would like more information on 020 8253 7600 or 020 8432 2041 and ask for one of the Private Client team. |
