ENDURING POWER OF ATTORNEY

An observation by Arthur Barron of Vivash Hunt


Many clients come to talk to us about enduring power of attorney, often because they have heard about somebody else creating one – but lack any real understanding as to the nature and effect of the document and the legal requirements.

Indeed, it is not uncommon for ‘children’ to consult me on behalf of their parent (the donor), who actually no longer has the mental capacity to execute an enduring power of attorney. This means that the parent has left it too late and the only way in which the children or others can take over the management of the parents’ affairs is for a Receiver to be appointed by the Court of Protection. Invariably, this is a costly and time consuming exercise, especially when compared to the execution of an enduring power of attorney.

It should be noted that it is possible to execute an enduring power of attorney to come into effect immediately. On the other hand, the donor may wish to include a clause in the power of attorney postponing its operation until he or she becomes mentally incapable.

Another option which the donor will need to consider is whether to appoint an individual to operate the power or, alternatively, appoint two attorneys (donees) – and then decide whether they would be required to act together at all times, or whether one of the two attorneys could act alone.

Whether or not the enduring power of attorney contains a stipulation preventing it from coming into effect unless and until the donor becomes mentally incapable, it must be registered with the Public Trustee Office – after notice of the attorney's intention to do so has been given both to the donor and a specified number of relatives.The fee payable to the Public Trustee for registering the power is £220.00.

Clearly, potential exists for problems surrounding the execution and operation of an enduring power of attorney. It is, therefore, always in the interest of the donor to arrange an early consultation with a solicitor – preferably one practising in the area of private client work and the needs of the elderly client in particular.

No responsibility is accepted by Arthur Barron or Vivash Hunt for any errors or omissions in the above article and it is recommended that readers consult a solicitor before proceeding with the execution or operation of an enduring power of attorney.

See also Financial Planning for more information on this subject

We should point out that Enduring Powers of Attorney do not apply in Scotland. Scottish readers will find the Alzheimers Scotland web site to be extremely useful reference to that country's particular welfare, benefits and legal technicalities. Go to www.alzscot.org.

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