What is an Enduring Power of Attorney and why it is an essential part of future proofing your financial wellbeing…

Legal jargon around the key differences between an Enduring Power of Attorney (“EPOA”) and a general Power of Attorney (“POA”) and more importantly, why you need to have one, can leave you feeling a bit confused…

 

But fear not! Below are the pertinent questions that you need to ask yourself before getting in to the nitty gritty of the various types of POA;

  1. What would you do if a loved one suffered from significant cognitive decline by way of accident, illness or just old age and all their assets (including all bank accounts) became frozen and unusable to contribute towards the cost of the care that they needed as a result?

  2. What would your loved ones do if it happened to you and your loved ones could not afford to provide you with the best possible care available?

If your answer to either of the above questions is “I don’t know”, then you need to think about contacting your solicitor to further discuss the possibility of establishing an Enduring Power of Attorney whereby you would appoint your most loyal and dependable friend, often a family member, known as the ‘trustee’, to act on your behalf when you no longer have the capacity to do so.

The Stats…

An EPOA differs from a general POA in that it only comes in to effect once the ‘donor’ i.e. the person who establishes the EPOA becomes mentally incapacitated. You may continue to believe that this has no relevance to you but the statistics are stark…

  • A couple both aged 65 have a 25% chance that one of them will live to 100 and although the prevalence of dementia is currently just 1% for those aged between the ages of 60 to 64, this increases to 50% from age 85.

  • A recent joint study performed by Trinity College Dublin and the National University of Ireland predicts that there will be an almost 300% increase in the prevalence of dementia patients in Ireland by 2041.

With life expectancy in Ireland currently at 81.5 years and rising (up from just 53 years in 1916), medical experts have made huge strides in enhancing our physical wellbeing as we age however the same cannot be said in relation to our mental health unfortunately…

The Costs…

The cost of an EPOA will vary depending on complexity but a typical cost that you could expect to pay is approx. €1,400. Not an insignificant amount by any means but it could be money very well spent when you consider the statistics detailed above.

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email.  financial@wallstone.ie

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