Grace Steele Head of Wills and Probate at the firm, said despite advance publicity many people are still uncertain of what the new legislation – being introduced under the Mental Capacity 2005 Act on October 1 – will mean for them.
As from next month it will no longer be possible to make a new EPA although existing ones will still be valid. Instead, people who want to appoint someone else to look after their financial affairs should their health fail, will have to execute an LPA – a Lasting Power of Attorney.
Grace added: “We’ve received a number of inquiries from clients wanting further information and advice about the changes and their implications – mainly because the LPA which replaces the EPA is more complex.
“It’s a known fact that people are living longer, with the percentage of the population aged over 65 increasing while those aged under 16 has fallen over the past 30 years.
“Unfortunately, longer life expectancy means more people seeing their quality of life suffer in later years due to physical or mental problems, making it extremely difficult for them to handle their own financial affairs.
“To prevent such difficulties arising, we have, in the past advised our clients to make an Enduring Power of Attorney – a simple and straightforward document whereby you appoint someone else, such as a family member, friend or solicitor in advance as your attorney to deal with your property and financial affairs should you become physically or mentally incapable of handling them yourself.
“However, this is all set to change from next month, as after October 1 you will no longer be able to make an EPA, but will instead need to execute an LPA which is substantially more involved and complicated.
“An LPA must contain a certificate completed by an independent person confirming that the donor of the document understands its power and importance and has not been put under any pressure to make it. The LPA cannot be used immediately but only after it has been registered with the Public Guardian. Also, its powers can extend beyond property and financial matters to personal welfare as well.
“The cost of implementing an LPA is going to be a lot greater than that of making an EPA. Also, for many people who have extremely straightforward family situations – for example, where parents wish to appoint their children to deal with their assets – an LPA is somewhat cumbersome.
“Therefore, anyone who does not already hold an EPA should consider granting one, if appropriate, before the new Act is introduced. Also, we would strongly advise people who already hold an EPA to review it, as any changes that need to be made must be actioned before the Act comes into force.”