From 1st October this year, the Enduring Power of Attorney (EPA) will disappear and be replaced by a new 'Lasting Powers of Attorney' (LPA). All existing EPAs and those completed and signed before 1st October will remain valid, but after that the LPA will become the only option available.

So what is the difference?

An EPA is a legal document in which you give the legal right to one or more people that you trust, such as a relative or friend, to manage your financial affairs and property. These include signing cheques and withdrawing money from savings accounts, buying or selling shares or houses and using your assets to finance your residential or nursing care. This power can come into effect immediately so your attorney(s) can manage part or all of your financial affairs for you, or you can continue to manage them yourself while you are able to and hand over responsibility later.

The attorney may also have limited powers to use your assets to benefit anyone for whom you might have been expected to make provision, such as making gifts on special occasions or making donations to charities that you are likely to have made. However, a financial attorney has no power over you and cannot direct where you live or make decisions regarding your medical welfare.

In the event that you lose your mental capacity, the appointed attorney must register the EPA with the Court of Protection, and is then able to continue to manage your affairs for you.

In contrast, powers under an LPA are greater than an EPA. The LPA confers the same authority for your attorney to conduct your financial affairs, but it can also give them power to deal your personal welfare. This means that your attorney can make decisions regarding consent or refusal to medical treatment or whether you live at home or in a nursing home.

With these increased powers, there are increased security measures built into the new system. Whereas an EPA can come into effect immediately, and only needs to be registered once you lose mental capacity, the LPA is not valid until it has been registered with the Public Guardianship Office and must be accompanied by a signed certificate confirming the donor is of sound mind.

AN EPA can be set up for a modest cost, but as the LPA it is more complex and more time consuming to set up, the costs are probably going to be greater. The current fee for registering an EPA is £120, and while the registration fee for an LPA has not yet been fixed, it is also likely to be higher.

The new LPA will be better for some people, while for others the EPA may be the best option. If you are considering appointing an attorney to act on your behalf, we would recommend that you take professional advice, but don’t delay because from 1st October, your only choice will be the LPA.

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.