Enduring power of attorney (EPA) meaning

This checklist outlines the steps to successfully register an enduring power of attorney (EPA). These steps include verifying that the EPA was valid when created and is still valid, assessing the donor’s mental capacity, and notifying the relevant parties of the intention to register the EPA and the application for registration. Ensuring that the enduring power of attorney was valid when created Make sure the power: is in the form prescribed by law at the time the donor executed it and, when executed by the donor, incorporated the explanatory information prescribed at that time, and that none of the following statements has been omitted: that the donor intends the power to continue in spite of any supervening mental incapacity that the donor has read, or had read to them, the information explaining the effect of creating the power that the attorney understands the duty of registration was executed in the prescribed manner...

See Q&A: A and B, a married couple, are on the register as owners of a property as tenants in common. A has passed away and named their adult child (C) to act as executor. B now lacks capacity, and C also serves as B’s attorney under a registered enduring power of attorney. Can C appoint a co-trustee of the property to enable a sale, or must they first obtain authority from the Court of Protection? Under section 7 of the Trustee Delegation Act 1999 (TDA 1999), a capital money receipt will only overreach beneficial interests where an attorney acts together with at least one other individual. For a sale of land, overreaching requires either two trustees or a trust corporation (see section 2 of the Law of Property Act 1925). Accordingly, the executor/attorney (C) must have a second trustee in place to effect a valid disposition of the land. This implies that a receipt clause in a...

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Since 1 October 2007, new enduring powers of attorney (EPAs) cannot be created; however, documents executed before that date remain effective and are likely to continue appearing for many years to come. As a result, it remains essential that the manner of their creation and the way they function day to day are understood. An EPA that has been properly executed is not brought to an end by the donor becoming mentally incapable. Nevertheless, if and when the donor loses capacity, the authority cannot be exercised unless the EPA is registered. The donor For an EPA to be valid, the donor must, at the time of execution, have the ability to comprehend the nature and effect of the EPA. It is insufficient that, on that date, the donor was merely able to carry out the acts authorised by the power...

Private Client England & Wales glossary A Abatement When, after settling the deceased’s funeral costs, debts and liabilities, the remaining estate cannot satisfy all legacies in full, the gifts are reduced accordingly, unless the Will shows a different intention. In a solvent estate, the order for reduction appears in Part II of Schedule 1 to the Administration of Estates Act 1925. Refer to Practice Note: Payment of legacies. Accruals basis Where income is taxed on an accruals basis, it is attributed to a given tax year by reference to the number of days within that year during which the activity giving rise to the liability accrued. See Practice Note: What is the basis of income tax?. Accumulation and maintenance (A&M) trust A form of non‑interest in possession trust designed to benefit children and young people up to 25, which received favourable inheritance tax treatment between 1975 and 2006. See Practice Note: Accumulation and maintenance trusts—IHT [Archived]. Accredited Legal Representative (ALR) ...

Since 1 October 2007, no new enduring powers of attorney (EPA) can be made, yet numerous documents still remain in circulation, either active or ready to be used. Solicitors are, not uncommonly, asked whether a client ought to retain an existing EPA or instead set up a lasting power of attorney (LPA) afresh. Validity Where an EPA turns up, the initial task is to confirm it was executed properly and is therefore valid. Capacity Perhaps the most significant point is the donor’s capacity at the moment they entered into the EPA, when the document was made...

The Office of the Public Guardian DX 744240 Birmingham 79 [ Office of the Public Guardian ] [ PO Box 16185 ] [ Birmingham ] [ B2 2WH ] Dear [ insert organisation name ] [ insert name of donor ] Application to register an EPA We act on behalf of [ insert name of Attorney ], the attorney for the above-named. The Attorney intends to submit an application to register the EPA dated [ insert date of EPA ]. We enclose: the original EPA; Form EP2PG; our cheque for [ insert amount of application fee ]. We would be grateful for the registered EPA to be returned at the earliest opportunity. Yours faithfully [ insert name of firm ]...