FAQs - EPAs

The Enduring Power of Attorney (EPA) is an authority for a person or persons (the “Attorney(s)”) to act on behalf of the person giving the authority (the “Donor”) – it empowers the Attorney to look after the financial and/or business affairs of the Donor. The Attorney can use the Donor's money to pay bills, buy and sell shares, and even sell the Donor's house. He/she has limited power to make gifts with the Donor's money or give away the Donor's belongings. It does not cover matters such as whether or not medical treatment should be given or withheld or the execution of a Will for the Donor.

Mental disability (and indeed physical disability) can affect anyone regardless of age and is often the result of a stroke, an accident or an illness. Whatever the cause, the effects of mental disability are the same – the person is left incapable of dealing with the financial and other matters that most of us take for granted.

If you have Critical Illness cover it is highly recommended that an EPA be prepared at the same time as you may receive a large sum of money but not be in a position to have access to it, for example if it is paid into an account that requires your signature. You may also be unable to manage your affairs for reasons other than mental or physical disability, for example having an accident abroad or having a prolonged stay in hospital.

Without an EPA, if disability does occur then the only way that the affairs of a disabled person can be dealt with is by applying to the Public Guardianship Office for the appointment of a receiver. This will normally be a near relative, solicitor or accountant who will receive the person’s income, pay the debts and deal with other day-to-day matters.

Appointing a receiver can be an expensive and time consuming business. In addition there are annual fees payable to the Public Guardianship Office for the auditing of accounts and other matters. There could also be annual visits from court representatives to ensure that the Donor is being looked after in a satisfactory manner