What is an Enduring Power of Attorney?

An Enduring Power of Attorney (EPA) is a legal document that you can use to appoint someone you trust to handle your financial affairs, during your lifetime. The person authorised to do this is called the 'attorney' and the person making the EPA is called the 'donor'.

It is important to take care whom you choose as attorneys, given the control they will have over your assets. An attorney should not make decisions about anything other than financial matters. They should not control the donor’s behaviour or choice in any way. It is quite usual for a donor to appoint professional advisors as well as members of their own family.

An EPA can be created at any time. This does not mean that the donor immediately foregoes the right to carry on dealing with their own affairs. They can go on doing this for as long as they are able or wish to do so. The important thing is that the EPA is ready to use in the future, should the donor become mentally incapable or feel they can no longer cope with managing things themselves. A mentally capable donor can cancel an EPA at any time.

Where an EPA exists and the attorneys believe the donor is no longer mentally capable, they must apply to have the EPA registered with the Public Guardianship Office. This cannot be done without the donor and at least three of their nearest relatives being notified. Either the donor or the family can object to the registration application. The EPA terminates on the death of the donor.

It is not expensive to draw up an EPA. The advantages of taking this precaution are that you choose who looks after your finances, in the event that you are no longer able to do so yourself, without any further expense.

If you become unable to manage your own affairs and do not have an EPA, a court order is needed to appoint someone not of your choosing to manage your affairs and this is a far more costly procedure.