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Planned Changes to Powers of Attorney
28 05 2007
From 01 October 2007, under the Mental Capacity Act 2005, new Lasting Powers of Attorney (LPAs) will replace Enduring Powers of Attorney (EPAs).
The Current Law - What is an EPA?
A power of attorney is just a legal device to enable other people to be able to deal with your affairs on your behalf. It can be used in a wide range of contexts, for example, for signing cheques, paying bills, or selling a house. It can continue to be used (provided it is registered by the attorney) even if you become mentally incapable of managing your own affairs or you can limit how long the EPA should last for example to cover a set period of time should you go on holiday.
The New Law - What is an LPA?
From 01 October 2007, anybody wishing to delegate such duties will need to use the new ‘LPA’ regime. The scope of an LPA will be wider than an EPA. LPA’s will be more complicated and will require registration with the Office of the Public Guardian which will include paying a fee.
The LPA will be a comfort to anyone concerned about entrusting important decisions about care and treatment to the right person. The LPA creates a framework for the donor to discuss priorities and preferences with the attorney in good time. Also, there will be added layer of protection against any unscrupulous manipulation of the system to steal money or property. The new LPA cannot operate until it is registered. And it cannot be registered without a signed certificate from a reputable person confirming that the donor is of sound mind.
The differences between LPAs and EPAs
The main differences between EPAs and LPAs are that an LPA must contain a certificate stating that the donor understands the purpose and scope of the authority under it. LPAs can be a 'joint power' in some matters and a 'joint and several power' in others. The donor can carry on making decisions provided they have the capacity to do so and the attorney can only make personal welfare decisions if the donor is incapable. Donors can apply to register the LPA themselves and an application can be made prior to incapacity. The donor's relatives will not be notified of registration unless specified. However, an EPA signed before October 2007 will still be valid.