Enduring Power of Attorney

Have you considered who would deal with your financial affairs if you became physically or mentally unable to do so yourself, whether through old age, accident or illness?

It is usually assumed that family members will be able to step in, but the position may not be as straightforward as you think. For instance, if you no longer have sufficient mental capacity, your relatives may have to transfer the control of all your assets to the Court of Protection. This is a time consuming and costly process.

Your bank and building society accounts and other assets would effectively be frozen, and there could be considerable difficulties even in such everyday matters as paying bills, providing for your dependants and continuing to run your business activities.

Even if you are not mentally incapacitated, you may be physically unable to deal with your affairs as you used to, or due to change of circumstances you may just prefer someone else to do this on your behalf. However, it may not be legally possible for this to happen.

The simple solution to all this is to set up an Enduring Power of Attorney (EPA) now. This is a straightforward matter, which does not involve great cost. It is as important as having a properly drawn up Will. Indeed everyone over the age of 18 should have an EPA. An EPA is a document which normally only comes into effect if at some future time you become unable to administer your affairs yourself. In the EPA you specify who will have that responsibility (usually two relatives/friends or professional advisers) and you also set out any limits or restrictions on their powers.

You can cancel the EPA at any time before it comes into effect.

Once it does come into effect, the people whom you have appointed under the EPA only have to register it with the Court if you are then, or later on become mentally incapacitated - this is a fairly simple matter and nothing like the trouble of having to involve the Court of Protection if there is no EPA.