Enduring Powers of Attorney (“EPAs”)
What Happens if Someone Loses Mental Capacity Without EPAs?
With September having been Wills month, it is timely to review all of your estate planning. That includes ensuring you have Enduring Powers of Attorney (“EPAs”).
Losing mental capacity can be a life-altering event for people and their families. Our legal framework allows people to plan ahead by appointing someone to make decisions on their behalf if they lose mental capacity, through EPAs. However, not everyone realises the importance of, and prepares EPAs. When a person loses mental capacity without having EPAs in place, it can create significant legal and practical challenges, often requiring costly and lengthy court applications to deal with your property or care.
Mental incapacity is generally when a person is unable to make decisions for themselves. For example, this could be due to an injury obtained in a car accident or other impairment such as dementia. It is not only the elderly that need EPAs. Everyone should have them in place. Ideally this is done at the same time as making a Will.
The Role of Your Attorney
Your EPAs are legal documents that allow you (the “donor”) to appoint someone else (the “attorney”) to make decisions on your behalf. Ideally you also appoint a back-up attorney(s) for future proofing. When considering your attorney(s), appoint close family or friends who have the right emotional and financial sensibilities.
There are two types of EPAs:
- Personal Care and Welfare EPA: This gives the attorney the authority to make decisions about the donor’s health, living arrangements and welfare matters. It only comes into effect when the donor is certified as mentally incapable.
- Property EPA: This allows the attorney to manage the donor’s property and financial affairs if they are unable to. The donor chooses if the EPA is to be activated either when they lose capacity or at the time of signing (for convenience).
Whether you are reviewing your current EPAs, or don’t have them and need to put EPAs in place, we can help. We ensure you understand your EPAs, select the best person(s) as your attorney and provide set fees for this type of work.
