Powers of Attorney - Urgent Action Now!

Powers of Attorney are important documents. Many of our Clients sign Enduring Powers of Attorney (“EPAs”) to appoint people to deal with their financial affairs to cover any time when they are unable to do so either through physical or mental impairment.

An EPA is easy to bring into effect and also to operate when it is necessary for the attorneys to take over the financial affairs of the person concerned, and they are very popular with clients.

These are shortly to be replaced by Lasting Powers of Attorney (“LPAs”) which will come into operation on 1st October 2007. Existing EPAs will continue to have full force and effect and do not have to be replaced with an LPA unless Clients want to do so.

The Rules relating to LPAs are intended to create a more complex system to manage a clients’ affairs, but they can cover not only financial matters, but also welfare matters including decisions over personal care or medical or other treatment, which EPAs do not.

Unfortunately, the actual form of the LPA and the Code of Practice under which they will operate have not yet been finalised by Government even though the date for coming into operation has already been fixed.

It is clear, however, that LPAs will be more expensive to produce and operate than EPAs. We strongly recommend that Clients think carefully whether they should sign EPAs now whilst they are still available. By doing this, Clients are choosing the cheaper and simpler arrangement to cover their affairs.

Contact us on 01329 822333 for further details.