Articles

15th August 2007

Deadline - plan today, relax tomorrow

Our society today revolves around a simple premise: live for the moment. But the wiser person will take a longer view, and think about the future.

The sad fact of the matter is, the time may come when you are unable to manage your affairs. As such, it's important that you have the best possible arrangements in place for you and your loved ones. This leads to an important question:

"If I can't manage my affairs, who'll do it for me?"

Currently, as long as you have full mental capacity, you can make an Enduring Power of Attorney (EPA) appointing somebody to manage your affairs if you become unable to do so. The EPA can be used by that person (with your consent) without the need for any Court to become involved.

If you were to suffer some form of mental incapacity, then the EPA would be sent to Court for registration and a Court fee (currently £120.00) would be payable. The Court will then register the EPA and return it to your appointed individual to continue managing your affairs.

However, from 1st October 2007, the EPA will be replaced by the "Lasting Power of Attorney", or LPA. This means things are going to change.

Under the new rules:

  • Making a Power of Attorney will be more costly with Court Fees estimated to be £150.00 or more, as it must be registered with the Public Guardianship office before it can be used, and
  • The Court can visit you and your appointed Attorney, possibly resulting in further costs, inconvenience and intrusion.

If you don't make an EPA before then, you'll instead have to apply to the Court for permission to manage your affairs. Such applications are restrictive, time consuming and much more costly than making a Power of Attorney.

Furthermore the EPA will remain valid under the new Law, which could prove a less costly and more flexible option for the Client.

ACCREDITATION

For further advice contact Colin Hayward at Kingsfords Solicitors, 5-7 Bank Street, Ashford, Kent, TN23 1BZ. Telephone number 01233 665544.

Disclaimer

The content of this article is intended for general information purposes only and is not a substitute for specific advice. It is based upon our understanding of the legal position as at May 2007 and it may be affected by subsequent changes in the law. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.