Enduring power of attorney

learnwell

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How necessary or important is an enduring power of attorney between a married couple in relation to a future possibility of mental incapacity of one spouse. Does it confer any powers which which are not already in being thru the legal status of marriage. It is understandable
in the case of eg an elderly unmarried relative, or between a widowed person and an offspring.
Surely a spouse has the right to make care and/or financial decisions on behalf of their incapacitated wife or husband.
 
It's vital to have an EPA. Otherwise, the situation is dealt with under the delightfully named Lunacy Act of 1871. There have been some recent legislative developments with regard to assisted decision making, but an EPA makes life a lot easier in otherwise difficult circumstances.
 
My understanding is that property owned by an individual can't be disposed of without their consent.

So if they are not in a position to give consent there is a problem.

EPA deals with the problem. I'm sure MF will clarify.
 
"Surely a spouse has the right to make care and/or financial decisions on behalf of their incapacitated wife or husband."

Care decisions, yes. Dealing with someone else's finances, no.

A husband and wife are not one legal unit - they are two separate legal entities. If they choose to own everything jointly, then , yes, one person can deal with all the finances because they are jointly held.

Where assets are held in an individual's name, then only they can deal with those assets. Unless they appoint someone else to deal with them. By way of EPA for instance. Or transfer them into joint names.

My own experience is that putting assets into joint names is the way to go. This works well for older people who are unlikely to run off! With the money , someone else, or both!

If a couple are always on the edge of separating, then putting solely held assets into joint names is not a good idea.

With older people, I like to see the family, if applicable, getting involved with their parents' finances at a certain stage. Most families are good at this and above reproach. Some families, and you can see it coming down the line even before they do, should not be allowed within an asses roar of access to someone else's money. And that is why people should plan for their future.

mf
 
There tend to be CGT issues when you look to consolidate a husband or wife's assets into joint ownership. I'm a big fan of EPAs to be honest.
 
My own experience is that putting assets into joint names is the way to go. This works well for older people who are unlikely to run off! With the money , someone else, or both!
Our home and almost all our savings are in joint names, could I infer that in the circumstances an EPA would not be necessary in our case?
One other puzzle: I quote from Citizens Information, " At least 2 people must be notified of the making of an EPA, none of whom will be the attorney. One of the notice parties must be your spouse or civil partner if living with you". I find this confusing; does it mean that a spouse cannot be an attorney, since he/she must be one of the notice parties?
 
There tend to be CGT issues when you look to consolidate a husband or wife's assets into joint ownership. I'm a big fan of EPAs to be honest.

I didn't think there was any CGT issue on transferring assets between spouses?

mf
 
I didn't think there was any CGT issue on transferring assets between spouses?

mf

The issue is that a gift results in the recipient inheriting the original base cost, whereas an inheritance results in the base cost becoming the market value.

Asset worth €100 which cost zero. Husband owns it outright. He gifts it to his wife. She sells it and ends up with €67 net of CGT.

Same scenario but he holds onto the asset, she inherits it and sells it. She ends up with €100 end of story.
 
The issue is that a gift results in the recipient inheriting the original base cost, whereas an inheritance results in the base cost becoming the market value.

Asset worth €100 which cost zero. Husband owns it outright. He gifts it to his wife. She sells it and ends up with €67 net of CGT.

Same scenario but he holds onto the asset, she inherits it and sells it. She ends up with €100 end of story.

OK. Thanks for that.

I suppose I'm working off a presumption that by the time the parties are thinking about registering EPA'S they've gone past the stage of selling off excess assets.

Live and learn

mf
 
OK. Thanks for that.

I suppose I'm working off a presumption that by the time the parties are thinking about registering EPA'S they've gone past the stage of selling off excess assets.

Live and learn

mf

I've come across quite a few cases where a dying spouse has been advised to transfer everything into joint names to make things simpler and there have been assets with huge gains.
 
Citizens Information, " At least 2 people must be notified of the making of an EPA, none of whom will be the attorney. One of the notice parties must be your spouse or civil partner if living with you".
I find this confusing; does it mean that a spouse cannot be an attorney, since he/she must be one of the notice parties?
Wonder can anyone shed light on this?
 
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