Enduring Powers of Attorney
We all assume that somehow we will be able to manage our own property and financial affairs throughout our lifetime. However, this does depend on having the mental capacity to understand our various transactions and their implications. So what happens to your property and savings if you lose capacity?
These abilities may be unexpectedly lost through accident, injury or the on-set of illness such as dementia, so it is reassuring to know that there are procedures in place that can help you plan for the future. You can plan for these possibilities by taking the sensible precaution of executing an Enduring Power of Attorney (EPA) whilst still mentally capable.
What is an EPA?
An Enduring Power of Attorney is a Deed by which one person (the Donor) authorises another person (the Attorney) to act on his or her behalf in relation to all, or specified property and financial matters. This delegated authority will continue if the Donor loses mental capacity.
Do I lose control when I sign an EPA?
You are potentially sharing control with your Attorney. You can state the EPA is not to come into operation unless you become mentally incapable. Some prefer to make this stipulation. Others choose not to, as they wish their EPA to be effective if they become physically incapacitated and unable to manage their banking etc, yet remain mentally capable. This is an important choice which should be carefully considered.
Without a suitable EPA in place:
Jointly owned property cannot be sold
Sole or Joint bank accounts may be frozen
Potential cash flow problems can be devastating for:
Families
Businesses
Farms