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Enduring Power of Attorney changes 1 Oct 2007: Act now to avoid the price hike!
MSE_Martin
Posts: 8,268 Money Saving Expert
What's this all about?
If you lose mental capacity at some stage of your life you’ll need someone else to manage your finances. Currently, the document to do it is an Enduring Power of Attorney, which costs nothing to make but £120 to enforce. From 1 Oct 2007 this changes to a Lasting Power of Attorney which also includes health and welfare decisions, but can cost around £900.
If there's even a possibility a financial only power of attorney will be necessary over the next few years, get the documents signed now (no need to pay) to avoid the big hike.
Can you get it done now even if it's not time?
Yes, it's free to do (just sign, date and get the form witnessed); the £120 cost comes when you register it and that can be at any time in the future, but only if the form is completed before 1 Oct 2007.
Apply after 1 Oct and EPAs will be replaced by a Lasting Power of Attorney (LPA) that, although takes into account health and welfare decisions as well as financial matters will cost around £900 to enforce.
What to do
Simply download the free application form from The Public Guardianship Office, print it, and complete the details before 1 Oct.
It'll need to be signed by the donor (the person wanting their finances to be looked after in the future), the attorney or attornies (the chosen person or people who will act on behalf of the donor) and must be witnessed by someone outside of the donor's family.
The document must then be kept in a safe place; ideally at a solicitors but even in a draw at home is fine.
Remember, this isn't effective until the document is registered and sent off to The Public Guardianship Office so completing the form before October won't enable anyone financial authority until then.
Which power of attorney is right
That is a very difficult decision and one that's outside my field, there is more information on the Public Guardianship website. If this is a potential necessity for you, it really is worth checking out and spending a little time deciding before October.
Martin
If you lose mental capacity at some stage of your life you’ll need someone else to manage your finances. Currently, the document to do it is an Enduring Power of Attorney, which costs nothing to make but £120 to enforce. From 1 Oct 2007 this changes to a Lasting Power of Attorney which also includes health and welfare decisions, but can cost around £900.
If there's even a possibility a financial only power of attorney will be necessary over the next few years, get the documents signed now (no need to pay) to avoid the big hike.
Can you get it done now even if it's not time?
Yes, it's free to do (just sign, date and get the form witnessed); the £120 cost comes when you register it and that can be at any time in the future, but only if the form is completed before 1 Oct 2007.
Apply after 1 Oct and EPAs will be replaced by a Lasting Power of Attorney (LPA) that, although takes into account health and welfare decisions as well as financial matters will cost around £900 to enforce.
What to do
Simply download the free application form from The Public Guardianship Office, print it, and complete the details before 1 Oct.
It'll need to be signed by the donor (the person wanting their finances to be looked after in the future), the attorney or attornies (the chosen person or people who will act on behalf of the donor) and must be witnessed by someone outside of the donor's family.
The document must then be kept in a safe place; ideally at a solicitors but even in a draw at home is fine.
Remember, this isn't effective until the document is registered and sent off to The Public Guardianship Office so completing the form before October won't enable anyone financial authority until then.
Which power of attorney is right
That is a very difficult decision and one that's outside my field, there is more information on the Public Guardianship website. If this is a potential necessity for you, it really is worth checking out and spending a little time deciding before October.
Martin
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
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Comments
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For those in Scotland, please read this website...
http://www.scotland.gov.uk/Topics/Justice/Civil/awi/helping-friend-relative/Powers-of-Attorney/
http://www.scotland.gov.uk/Topics/Justice/Civil/awi/helping-friend-relative/Powers-of-Attorney/Continuing
http://www.scotland.gov.uk/Topics/Justice/Civil/awi/helping-friend-relative/Powers-of-Attorney/welfare0 -
MSE_Martin wrote: »Remember, this isn't effective until the document is registered and sent off to The Public Guardianship Office so completing the form before October won't enable anyone financial authority until then.
But bear in mind that the form can be used immediately, free and without registration, while you retain mental capacity.
Thus if you become less mobile with age, or maybe after an accident, if you already have the form completed before 1 October you can give it to your attorney, who will be able to carry out banking and other business for you and sign legal and financial documents on your behalf.
It's only when you lose (or start to lose) mental capacity that your attorney is required to register the Enduring Power of Attorney and this can be any time in the future.
But you must act now, as after 30 September the opportunity to create this particular PoA will be gone.
Unsure whether it will be useful for you? If you have one or two people who you would trust to act for you, download the form now and get it signed, witnessed and dated; lock the form away and decide later.0 -
Does this cover Northern Ireland also?0
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Have read about this, and meant to go find out how. You have saved me much time and trouble. Very grateful for the easy routing.0
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I assume that each attorney must sign and be witnessed by the end of this month? That is, you can't leave this until you register the form, which might not be for many years?
Unless anyone knows for certain that the lower registration fee will apply even if the attorney signs after this month, it seems safest to have the attorneys sign now, to be sure.
I am no expert, but if you have several attorneys who need to sign it, it looks as if the easiest procedure might be to send each attorney a link to the form and ask them to download it, print part C, sign it and get it witnessed. The separate Part Cs can then be sent to the person who signed Part B and kept together.koru0 -
Does anyone know the definition of "minor" in this instance pls?
I was planning to appoint my daughters alongside my hubby - but notice that Part C states "I am not a minor". My eldest daughter is 17 - do you think minor might be for 18 and over rather than 16 and over?
TIA.0 -
Edinburghlass wrote: »For those in Scotland, please read this website...
http://www.scotland.gov.uk/Topics/Justice/Civil/awi/helping-friend-relative/Powers-of-Attorney/
http://www.scotland.gov.uk/Topics/Justice/Civil/awi/helping-friend-relative/Powers-of-Attorney/Continuing
http://www.scotland.gov.uk/Topics/Justice/Civil/awi/helping-friend-relative/Powers-of-Attorney/welfare
OK, I've looked at those, but legal stuff makes me glaze over at the best of times.
Does the change in costs effect us in Scotland???0 -
Or us in Northern Ireland?0
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joaniemerc wrote: »Does anyone know the definition of "minor" in this instance pls?
I was planning to appoint my daughters alongside my hubby - but notice that Part C states "I am not a minor". My eldest daughter is 17 - do you think minor might be for 18 and over rather than 16 and over?
TIA.
Found the answer - it's 18.0 -
For information, there have been at least three other threads on this ...
http://forums.moneysavingexpert.com/showthread.html?t=519709
http://forums.moneysavingexpert.com/showthread.html?t=522958
http://forums.moneysavingexpert.com/showthread.html?t=543797
The acquisition of wealth is no longer the driving force in my life.
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