Have you ever wondered what may happen should you be unable to handle your own affairs? This may arise from physical incapacity and you are unable to get out to visit the bank or the post office to deal with day to day events that involve financial issues. However, more of us are living to a ripe old age, and unfortunately one of the effects of ageing is a reduction in mental ability, which can impair judgement.

One realistic solution is to create an Enduring Power of Attorney (EPA). This is a document that legally appoints someone you know and trust to act on your behalf and manage your financial affairs. It can only be created on your instruction, so nobody can create one for you or force you to appoint them as your attorney.

You can limit the powers of the attorney to specific issues, like just paying bills, or managing a single account. Alternatively a general EPA allows your appointed attorney to manage all your affairs including bank accounts, savings and property. This can confer unlimited powers, so if they consider it’s in your best interest, they have the power to sell your house.

As there are differing levels of incapacity, an EPA can be used in different ways. For instance, if your incapacity is only temporary, you can create a Power to permit someone to look after your affairs while you are incapacitated, which can be cancelled when you have recovered.

An EPA can allow your attorney to look after your affairs when you can no longer manage them yourself through mental incapacity.

If an EPA is created, and then the donor becomes mentally incapable, if there is provision for it to continue after mental capacity it must be registered with the Public Guardianship office, and the attorney can then handle your affairs in line with the EPA.

If an EPA has not been created, and you are no longer able to manage your affairs, there are other alternatives. If you have financial support from social security or pensions, the Department of Work and Pensions can appoint someone to take over your claim on your behalf. However, if there are other assets, application can be made to the Court of Protection who can appoint a receiver to manage your assets, but this is more complicated, time consuming and costly.

An Enduring Power of Attorney is not only easier and less expensive to set up, it means that you have control and choose who you want to act on your behalf.

If you would like more advice on Powers of Attorney or other legal matters contact Teresa McCutcheon at Motley & Hope Solicitors in Biggleswade. Contact Teresa on 01767 600600 or e-mail teresamccutcheon@motleyandhope.co.uk