You may be familiar with the concept of a will, but how about an enduring power of attorney (EPA)? It is a financial arrangement specifically designed for those suffered from dementia.
Dementia patients gradually become incapable of taking care of themselves and need help in their daily lives as well as managing their assets and finances. To ensure our own and our family’s well-being, we can make an EPA in advance to appoint a suitable person(s) to take care of our assets and finances after we lose our mental capacity. Different from the general power of attorney, which becomes invalid if we were mentally incapacitated, an EPA continues to be in effect.
An EPA needs to be made while a person is mentally sound and healthy. However, most of us rarely see the need to prepare an EPA while thinking becoming mentally incapable is a distant threat. Besides, it involves specific legal requirements and procedures, which need to be processed through a solicitor and may involve certain costs. These factors may discourage people from making the move.
Nonetheless, dementia is a common condition among the elderly. Caring for a loved one who has lost their mental capacity is an ongoing struggle. The caretaker will experience significant mental and financial strain. As such, making the financial arrangements in advance is essential for providing both patients and their families with peace of mind. For patients who have lost mental capacity but have not made an EPA, their families may need to apply to the Guardianship Board to be their guardians or apply to the High Court to appoint a committee to handle their financial affairs. The process of applying for a committee involves lengthy legal procedures and can be costly.
7 June 2024
