Powers of Attorney
It has been possible to appoint an Attorney to enable someone to deal with your affairs for many years. A General Power of Attorney however is revoked if the donor is no longer capable of managing his or her affairs.
In 1985 this changed with the introduction of Enduring Powers of Attorney. This provided a simple solution to the problem because subject to certain registration formalities the Enduring Power of Attorney allowed the Attorney to continue to manage the donor’s affairs despite their incapacity.
Enduring Powers of Attorney (EPAs) have proved to be very popular. The form of the Enduring Power of Attorney itself is straight forward and although many EPAs authorised the Attorney to act generally in connection with all the donor’s property and affairs it was possible to restrict the Attorney’s authority.
The donor could revoke the EPA at any time whilst still mentally capable of doing so and if the donor became incapable the registration procedure was not onerous.
This all changed on 1st October 2007 when the Mental Capacity Act 2005 came into force.
It is no longer be possible to make an EPA. Instead the new form is known as a Lasting Power of Attorney (LPAs). EPAs that have already been made will remain effective.
An LPA can be used not only to deal with property and financial matters but can also allow the Attorney to deal with matters affecting the donor’s personal welfare. In relation to financial and property matters an LPA can be used both before and after the donor becomes incapable of managing their own affairs but the LPA will only be effective in relation to personal matters once the donor is no longer capable.
Secondly and perhaps more significantly the LPA (which has to be in a prescribed form) has to be registered at the outset with the Public Guardianship Office. The registration fee will be £150 or £300 depending upon whether one or both sections of the LPA is registered. Doubtless this will increase with the passage of time.
The LPA will certainly be more expensive to create and administer.
Please contact Simon Mackarness, Dennis Morrison, Michael Parr or Patrick Hunter who will be able to offer further advice.