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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