An Enduring Power of Attorney (EPA) is a legal instrument that permits an individual (the Donor) to appoint an Attorney to manage their property and financial affairs in the event they become mentally incapacitated. Its key distinction from an ordinary Power of Attorney is that it endures beyond the loss of mental capacity.

Primary Advantages

1. Preservation of Autonomy:
   The EPA ensures that the Donor’s chosen representative, not a court-appointed stranger, assumes control. This guarantees that personal judgment and trusted relationships guide financial decisions.

2. Prevention of Costly and Lengthy Court Proceedings:
   Without a valid EPA, families must apply to the Court for the appointment of a manager—a public, expensive, and time-consuming process. An EPA provides a direct, efficient, and private alternative.

3. Ensured Continuity and Asset Protection:
   An Attorney can act immediately to manage financial obligations (e.g., bill payments, investments, business operations), ensuring seamless continuity and safeguarding the Donor's assets from neglect.

4. Robust Safeguards:
   The EPA process incorporates significant protections, including a mandatory certification by a solicitor or medical practitioner confirming the Donor's understanding. The document only becomes effective upon registration with the High Court, which includes notifying relatives.

Important Distinction

Note that an EPA in Hong Kong is limited to property and financial matters. It does not extend to personal healthcare or welfare decisions.

Recommendation

Establishing an EPA is a strategic measure for risk management. We advise consulting with a legal professional to execute this document while one retains full mental capacity. Please contact our CEO Ms. Amie Cheung if you are interested.

Disclaimer

This document provides general information only and does not constitute legal advice. Specific circumstances should be discussed with a qualified solicitor.