Enduring Power of Attorney Changes
Have you ever contemplated what would happen if you
- had an accident, or
- suffered an illness, or
- eventually old age caught up with you to the extent that you lost the ability to manage your own legal and financial affairs?
What is an Enduring Power of Attorney?
An Enduring Power of Attorney is an authority from one person (the donor) to another (the attorney) enabling the attorney to act on their behalf with regard to their legal and financial affairs.
Why should you make an Enduring Power of Attorney?
- Peace of mind :- an Enduring Power of Attorney is like an insurance policy - you may never require it but if the situation arose where it was necessary, it would prove invaluable to you and your family. With an Enduring Power of Attorney in place you would have personally appointed who you trust to look after your affairs.
- Time is running out :- the Government will stop Enduring Powers of Attorney from 1st October 2007 (any written before will remain legal and effective in the future) and you will only have the option of writing a Lasting Power of Attorney. The Lasting Power of Attorney forms could be up to 24 pages long, you could have to use 2 different solicitors, the legal charges are likely to be significantly higher because of the increased work involved and the Lasting Power of Attorney will have to be registered at the outset with the appropriate fees being paid.
- Control :- with an Enduring Power of Attorney in place you choose the Attorneys that you trust to act on your behalf. However, if you became mentally incapable of managing your own affairs without an Enduring Power of Attorney in place, someone you had not chosen would have to apply to the Public Guardianship Office to act as your Receiver. The Public Guardianship Office would then assume total control of matters such as investment, and the Receiver would then have little discretion as to what steps s/he might take without prior approval of the Public Guardianship Office.
- Speed :- if you have an Enduring Power of Attorney in place and a crisis arose your Attorneys could respond very quickly to ensure your needs were met. However, if they have to apply for Receivership the resultant delay can cause your loved ones unnecessary concern at a time that would already be difficult.
- Expense :- preparing an Enduring Power of Attorney is significantly cheaper than an application for a Receiver. A basic Enduring Power of Attorney is usually about £120 plus vat whereas the costs and associated fees of any application for Receivership are usually in the region of £1,000 plus vat. The reason why Receivership is so relatively expensive is that because you have not chosen the Receiver the State has to ensure that the person is appropriate and monitor their every step.
The principal reasons why Enduring Powers of Attorney are so popular are the relative simplicity of the way they operate and the flexibility provided in setting up the particular terms. The Donor chooses
- Who he/she would wish to deal with (the Donor's) financial matters;
- Whether to have either single or joint attorneys;
- Whether to limit the extent of the Attorney's authority (by matter or assets );
- Whether to revoke the Enduring Powers of Attorney at any time while still mentally capable;
- When the Power of Attorney is to become effective (immediately or later)
While the Enduring Power of Attorney document appears to be very simple it is essential that anyone contemplating granting one should have legal advice. We always ensure that this advice is given in person, not by letter or telephone. The reason for this is that the powers that the Attorney could have are potentially extremely wide. We consider it vital to ensure that the particular terms of the Enduring Power of Attorney are tailor made to best fit your particular circumstances, family composition and wishes.
PLEASE DO CALL US ON 01903 229999 and ASK FOR OUR PRIVATE CLIENT TEAM
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