Saturday, September 22, 2007
Enduring powers of attorney to be replaced
As accountants, we are not qualified in this area - but we thought we should draw it to your attention that the Enduring Power of Attorney is to be replaced with effect from 1 October 2007. The replacement is called a Lasting Power of Attorney (LPA).
There are differences between the two "products". The main feature of the LPA is that it comes in two parts - one to cover the financial affairs of the donor, and the other to cover health issues. So the donor can agree to an LPA covering health or finanance issues, or both. It follows that differing responsibilities could be undertaken by different people.
The LPA must be registered before it can be used, and a Certificate of Capacity is also required. This is an independant opinion that the donor was mentally capable at the time of signing the LPA and was not under any undue influence.
The LPA is more complex than its predecessor - if the time comes when either you or a loved one is unable to continue managing your (their) own affairs, then having an LPA in place is probably a good thing. It sounds like it's cheaper than the alternative which would applying to the Court of Protection to achieve the same result.
As I've said, Holmes Wild are accountants, not legal advisors; the above is a general narrative only and cannot constitute personal advice. If the issue concerns you, you should seek legal advice (from a solicitor) that is relevant to you. Whatever your present age, or state of health, your personal circumstances can change, so this is something to consider.
There are differences between the two "products". The main feature of the LPA is that it comes in two parts - one to cover the financial affairs of the donor, and the other to cover health issues. So the donor can agree to an LPA covering health or finanance issues, or both. It follows that differing responsibilities could be undertaken by different people.
The LPA must be registered before it can be used, and a Certificate of Capacity is also required. This is an independant opinion that the donor was mentally capable at the time of signing the LPA and was not under any undue influence.
The LPA is more complex than its predecessor - if the time comes when either you or a loved one is unable to continue managing your (their) own affairs, then having an LPA in place is probably a good thing. It sounds like it's cheaper than the alternative which would applying to the Court of Protection to achieve the same result.
As I've said, Holmes Wild are accountants, not legal advisors; the above is a general narrative only and cannot constitute personal advice. If the issue concerns you, you should seek legal advice (from a solicitor) that is relevant to you. Whatever your present age, or state of health, your personal circumstances can change, so this is something to consider.
