Enduring Power of Attorney

Enduring Power of Attorney Explained

Making an Enduring Power of Attorney is a crucial step in planning for your future. One day, you may be unable to make decisions for yourself. This document will ensure that someone you trust can do so on your behalf and act as if they were the person making those decisions themselves. This blog post will discuss what Enduring Powers of Attorney are, why you need one, how to create one, and more!
Various QROPS Schemes

What is an Enduring Power of Attorney Power of Attorney?

An Enduring Power of Attorney is a document that allows you to appoint an individual, known as the attorney-in-fact or agent, who will be able to make decisions for you if you are unable to do so.

The person can both act on your behalf and take instructions from you, which they must follow. An Enduring Powers of Attorney lasts until revoked by either yourself or the court.

It may happen at some point in time where someone needs these powers over you (either because of injury or illness). If this happens, then it’s best not to leave those people guessing what steps need taking next but rather provide them with instructions beforehand via an Enduring Powers of Attorney.

Creating one ensures that your wishes are followed and that the person you appoint as your attorney-in-fact can act on your behalf.

You see:

The Enduring Power of Attorney must be signed by both parties, usually in front of two witnesses who also need to sign it. The document will then go before a Court to decide if the Enduring Powers of Attorney is valid. If it’s not, the court will refuse to register it, and it cannot be used.

What is Mental Capacity?

Mental capacity is the ability to understand and make decisions for oneself. If you lose mental capacity, it can affect your decision-making abilities in several ways:

  • You might not be able to decide how best to protect yourself or your property even if you need help with this – an Enduring Power of Attorney could ensure that someone else makes those decisions on your behalf;
  • Mental incapacity also means that you might find it difficult making long term plans and arrangements, which again will need addressing via an Enduring Powers of Attorney;
  • It’s possible that while people are still aware they have lost their mental capacities, they’ll want someone like a family member or friend to make medical decisions for them. In this case, a Power of Attorney could be the answer.

It’s true!

This is not legal advice, and you should always seek professional help when making Enduring Powers of Attorney or other decisions about your mental capacity that might affect your future living arrangements, finances etc.

Different Types of Power of Attorney

There are various types of power of attorney. The two most common types are:

  • Enduring Power of Attorney (also known as Lasting Powers of Attorney)
  • General Power of Attorney

If you have a general power of attorney, the person named in your will to make decisions can also make financial arrangements and take care of other things like bills or selling the property until they pass away.

An Enduring Power of Attorney is different because it lasts beyond death. When individuals have lost their mental capacity due to age or illness but still want someone who knows them nicely to manage decisions on their behalf, then enduring powers of attorney might be needed.

How Do I Set Up a Power of Attorney?

The person who wants to give a power of attorney (donor) needs to sign it in front of two witnesses. You can create an Enduring Power of Attorney by having your solicitor draw up a document for you. This will be valid if: It has been signed and witnessed; all parties are over 18 years old; there is no evidence that one party was subject to undue influence or coercion when signing.

If I set up an enduring power, do I need a Lasting Power? Can’t I use my general power as well?

One should have both Enduring Powers of Attorney and General powers too because they serve different purposes. An Enduring Power only comes into effect once someone becomes mentally incapable.

A General Power can be used any time that someone is unable to make a decision. An Enduring Power will last until the person making it dies or becomes mentally capable again.

How Much Does It Cost to Set Up a Lasting Power of Attorney?

Setting up an enduring power of attorney can cost between £50 – £150 depending on the complexity. The LPA for both property and financial affairs costs £82, so if you want to cover your health needs and finances separately, then the total cost is £164.

In England and Wales, the registration fee is £82 per LPA – so it costs a total of £164 (the price of two LPAs) to register one as a power for property/finances and another as a power for care. 

In Scotland, the LPA2 for property/finances costs £82, and the LPA for care is £168.

In Northern Ireland, a combined Enduring Power of Attorney (LPAs) can be made for both financial affairs (£102), health, and welfare (£166). There are no registration fees in Northern Ireland unless you want to register the LPA at court.

On the other hand,

In Scotland, registration fees are not charged if you appoint a solicitor as your attorney with power of attorney – it is simply £82 per LPAs for property/finances and care combined.”

Do I Need a Solicitor?

You don’t need a solicitor to create an LPA. Forms from the Office of the Public Guardian (OPG) include guidance to help you fill them out. Alternatively, you can use a solicitor or the law center if you want advice.

You will need to appoint a solicitor as your attorney with power of attorney.

The person who will be managing your affairs needs to nominate themselves as the ‘attorney’ and give their consent – this should preferably be done in front of two witnesses, but it’s not essential. The LPA form includes guidance on how best to do this. You then have one witness sign both states, usually filled out by someone other than yourself, such as a family member or close friend.

Nevertheless,

We would recommend that you tell [friend] about what has been happening so they know what information may need to be shared with them during an emergency.

If you have problems with your attorney, contact the Office of the Public Guardian2 which regulates attorneys and deputies, monitors allegations of mistreatment or fraud, and can prosecute.

Common Questions

What Is the Difference between a Power of Attorney and an Enduring Power of Attorney?

How Long Does It Take To Get Enduring Power of Attorney?

Can Enduring Power of Attorney Be Used after Death?

What Rights Do Enduring Power of Attorney Have?

In Conclusion

Enduring Power of Attorney is an important document that needs to be taken seriously. It can help you with important decisions.

In the modern world, where we have to take care of our own finances and health for ourselves in case, we become incapacitated, Enduring Power of Attorney is an essential document that should be well considered before creating it.

Search

Your Journey to Financial Success Starts Here