Date:   3 August 2007

TIME IS RUNNING OUT FOR THOSE OF YOU WHO MAY BE THINKING OF MAKING AN ENDURING POWER OF ATTORNEY (EPA)

An EPA  is a document by which a person can appoint one or more people to look after their financial affairs should they be unable to do so due to mental or physical illness or disability.

From 1 October 2007 you will no longer be able to make an EPA as they are being replaced by Lasting Powers of Attorney (LPA) which have been introduced by the Mental Capacity Act 2005, an Act which has radically shaken up the laws governing the affairs of those who may suffer mentally disability.

Under the present law it is relatively straightforward and inexpensive to make an EPA. However it is anticipated that arrangements in respect of an LPA will be far more expensive and complex. For instance the powers under an LPA can be extended to give the attorney power to make decisions not only about the donor’s financial affairs but also personal welfare. 

Also, at the moment once an EPA is signed, the attorney can start acting under it straightaway, whereas an LPA will have to be registered with the Public Guardianship office before the attorney can operate under it, which will inevitably cause delays.

Many people think about making an EPA but never get round to it.  By the time they need one, because they are losing or have lost mental capacity, it is too late for them to do it.

Everyone should have an EPA even if they are still young and in good health. 

You still have two months in which to make one, and if you do so now the EPA will continue to be valid even after the new law on LPAs come in to force.

If you would like to discuss this further please contact Roger Williams (Partner) in our Private Client department or Hannah Banks (Associate) or any of the other members of the Private Client Team on 0121 212 2620.