WILLS and probate specialists across Merseyside are warning clients about a forthcoming change in the law affecting powers of attorney.
They are advising people to act now to arrange an Enduring Power of Attorney (EPA) before its replacement Lasting Power of Attorney (LPA) comes in in October as part of the new Mental Capacity Act.
Elainne Lawrie, wills and probate specialist at Wirral-based Lees Lloyd Whitley, said: “The Enduring Power of Attorney is a marvellous legal facility, allowing someone of your own choice to handle your financial affairs should you ever become unable to do so.
“It is a short, inexpensive task for a solicitor to do, and it can save so much heartache later on.
“Much is being written about the new Lasting Power of Attorney, and although advantageous in some ways, there is no doubt it will be more time consuming and expensive than its little predecessor, the EPA.
“Simply, this is a straightforward deed signed by Mr A that gives Mrs B the right to deal with his affairs.
“If Mr A does not want Mrs B to have that right immediately, then he can insert a condition to say she will not have the right until he has lost his mental capacity. So, if after a few years, Mr A develops Alzheimer's’ Disease and can no longer look after his own financial matters, Mrs B can step in and do it for him.
“Compare this to a situation where no such EPA exists.
“Mr C suffers a stroke, and is in a deep coma in hospital with no prospect of recovery. He has always taken care of the family finances such as paying bills, and the bank account for doing so is in his own name.
“Not even Mrs C can access that account, or anything else in Mr C’s sole name. All his assets will be frozen, and if state benefits are also paid into that account some serious hardship could follow.�
John-Paul Dennis, of Kirwans, added: “Those considering appointing a relative or trusted family friend as an attorney in the event of serious illness, disability or mental impairment would be well advised to get their arrangements in place before the end of September.
“EPAs are much cheaper to set up and they do confer some powers that are not available under an LPA.
“In addition to the significant cost increases many feel the new system will be considerably more intrusive as the new document also requires signing off by an authorised person, which of course may also have further cost implications.
“This is in comparison to the current system whereby an Enduring Power of Attorney document can be completed for £100-£200 under the supervision of a local solicitor.�