Enduring
Powers of Attorney
An Lasting Power of Attorney (LPA) is a document by which one person (the Donor) authorises another person (the Attorney) to do things and to sign documents on his behalf.
An ordinary power of attorney automatically becomes invalid if the Donor becomes mentally incapable; this is, of course, when it would be most useful to have an Attorney. The EPA was therefore introduced in the mid 1980's as a special power of attorney that continues in force if the Donor becomes incapable provided certain conditions are fulfilled.
Who should sign and EPA?
Mental incapacity does not usually afflict the young and middle aged. However anyone could become mentally incapable as a result of an illness or accident.
We believe that everyone should sign an EPA as a precaution against such an accident. Signing an EPA has the additional benefit that it can be used at any time in the same way as an ordinary Power of Attorney, for example if a document has to be signed while you are away on holiday.
In short an EPA is not just for the mentally incapable; it can be used at any time the Donor wants it to be used, either on a one-off occasion or regularly.
What are the Attorney's powers?
The Attorney can do anything that the Donor himself can do except :-
1. The Attorney cannot sign a Will on behalf of the Donor
2. The Attorney's power to make gifts is limited
3. The Attorney cannot give or refuse permission for medical treatment
When does the EPA take effect?
The EPA takes effect at once and could be used at once if the Donor so wished. However, usually EPA's are signed as a precaution and so it could go through three stages:
* Stage 1
At first the EPA is a precaution and is kept locked up in our safe.
* Stage 2
Sometimes as people get older they become tired more quickly and, although they are perfectly capable, jobs like paying bills and completing tax returns become too much effort. At this stage the Attorney can do these things on behalf of the Donor provided the Donor agrees that he may do so.
* Stage 3
If the Donor actually becomes incapable of managing their affairs the Attorney must register the EPA with the Public Trust Office.
What protection does the Donor have against fraud?
The most important protection is to keep the Power of Attorney in a safe place. We recommend that the Power of Attorney should be kept in our safe like a Will; we would only release it with your consent.
If the Donor becomes mentally incapable protection is given by a registration procedure.
What happens if you become mentally incapable?
If the Donor becomes mentally incapable the Power of Attorney will cease to be valid unless the Attorney registers it with the Court of Protection.
Before registration the Attorney must give notice of his intention to register to the Donor and to the Donor's closest relatives.
This gives the Donor and his relatives an opportunity to object to registration.
The Public Trust Office will not interfere with the Attorney's management of the Donor's affairs unless it is asked to do so. For example, if the Attorney was uncertain whether or not he had power to make an unusually large gift on behalf of the Donor (perhaps as a tax planning measure), he could apply to the Public Trust Office for guidance. Also there are occasions when someone might become suspicious that an Attorney is not acting in the Donor's best interests. If that person applies to the Public Trust Office and shows reasonable grounds for their suspicions, the Public Trust Office can order the Attorney to produce accounts.
How do I go about making an EPA?
An EPA is a simple form that we can prepare quickly and at no great expense.