When setting up a will, it may also be useful to setup a enduring power of attorney (EPA) to ensure that if you ever become ill or unable to cope, your financial affairs are kept in good working order.

An EPA is a sort of insurance in that if someone falls ill or is unable to look after their own financial affairs, their assets will be looked after. If an EPA is not put in a place, personal assets may be frozen until the Court of Protection decides who the best person to look after the assets is. This process may take a long time and can be expensive.

What is an EPA?
An EPA is different to the normal power of attorney and is not a well-known option. A power of attorney is used when someone needs to look after another person’s financial affairs for a relatively short period of time, such as through a physical illness. An EPA is for more extended periods of time and, as of October, will be replaced by lasting powers of attorney.

Setting up an EPA
EPAs are incredible easy to setup. Forms to set one up can be bought from stationers, or can be found on the Ministry of Justice’s website.

The person setting up the EPA can choose one or more attorneys to look after their assets. Normally, spouses, children, other relatives or friends are nominated. It is important that the donor has full confidence in the person that they propose to appoint as they will have full access to your assets. If there are any worries, attorneys can be instructed to act jointly meaning that they are unable to act separately and must take all decisions together. It is possible to nominate some joint and some separate attorneys so some can take decisions on their own whilst others must take decisions jointly. An EPA can also specify restrictions on what the attorneys can do.

It is possible to do an EPA on your own but it is recommended to use a solicitor as they will have a good understanding of EPAs. Using a solicitor is not expensive and should only cost a couple of hundred pounds to setup.

Lasting Powers of Attorney (LPAs)
From October 2007, EPAs will no longer be allowed to be made and will be replaced by lasting powers of attorney (LPA) however any EPA made before October will remain valid.

An LPA is an extended version of the EPA – they not only allow attorneys to look after assets such as finances and property but also allow them to make health and welfare decisions. However, because of the added complications, LPAs are expected to cost more to setup than an LPA. If you decide you would prefer an LPA to an EPA, it is best not to wait and to setup an EPA in the interim.

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