1. What is an Enduring Power of Attorney and How Does It Work?
Practical Example:
Mrs. Chan's Situation:
- Age 65, retired teacher
- Owns apartment in Tai Po
- Has investment portfolio
- Maintains several bank accounts
- Supports elderly mother
- Three adult children living overseas
Her EPA arrangement:
- Appointed eldest daughter as primary attorney
- Local son as substitute attorney
EPA covers:
- Property management
- Investment decisions
- Bank account operations
- Regular payments for mother's care
- Utility and maintenance payments
2. Why is an EPA Different from a General Power of Attorney?
Comparative Example:
The Wong Family Case:
General Power of Attorney:
- Mr. Wong grants power while working abroad
- Becomes invalid if he loses mental capacity
- Limited to specific transactions
- Temporary duration
EPA:
- Mrs. Wong creates for long-term protection
- Continues if she loses mental capacity
- Covers all financial matters
- Lasting duration
3. When Should You Consider an EPA?
Real-World Scenarios:
Scenario 1: Early Planning
- Mr. Lam, age 50
- Active business owner
- Multiple properties
- Family in Australia
- Creates EPA while healthy to ensure business continuity
Scenario 2: Health Concerns
- Mrs. Patel, age 70
- Early signs of memory loss
- Complex investment portfolio
- Children in UK and Hong Kong
- Urgent need for EPA before capacity issues
4. What Can an EPA Cover?
Practical Coverage Example:
CopyFinancial Matters:
- Property management
- Bank account operations
- Investment decisions
- Bill payments
- Insurance matters
- Tax affairs
- Business operations
- Asset maintenance
Example Scope:
Sarah's EPA includes authority for:
- Managing her Kennedy Town apartment rental
- Operating her HSBC accounts
- Maintaining her MPF investments
- Paying her mother's nursing home fees
- Managing her share portfolio
- Handling tax returns
- Maintaining insurance policies
5. Choosing Your Attorney
Selection Criteria Example:
Primary Considerations:
- Trustworthiness
- Financial competence
- Availability
- Understanding of your wishes
- Geographic location
- Family dynamics
Practical Example:
The Lee Family Arrangement:
- Mother (donor) age 68
- Three children:
- Eldest son (banker in Hong Kong) - Primary attorney
- Middle daughter (doctor in Canada) - Substitute attorney
- Youngest son (teacher in Hong Kong) - Family advisor
Chosen structure:
- Primary attorney handles day-to-day matters
- Major decisions require family consultation
- Regular updates to all siblings
6. EPA Registration and Activation Process
Timeline Example:
Creation Phase:
Week 1: Initial consultation
Week 2: Document preparation
Week 3: Medical assessment
Week 4: Legal witnessing
Week 5: Document signing
Activation Phase (if needed):
- Medical assessment of mental incapacity
- Registration with High Court
- Notice to family members
- Waiting period
- Final registration
7. Costs and Considerations
Typical Cost Breakdown:
- Legal Fees: HK$10,000-15,000
- Medical Assessment: HK$2,000-3,000
- Registration (if needed): HK$3,000-4,000
- Court Fees (if applicable): Variable
Important Considerations
Regular Reviews
- Review EPA every 3-5 years
- Update if circumstances change
- Inform attorneys of any changes
Documentation
- Keep EPA in secure location
- Provide copies to key people
- Maintain list of assets
- Record important contacts
Family Communication
- Discuss decisions with family
- Explain reasoning for choices
- Maintain transparency
- Address concerns early
Conclusion
An EPA is a crucial tool for protecting your interests and ensuring proper management of your affairs. While this guide provides comprehensive information, professional advice is essential for your specific situation.
Note: All examples are composite scenarios based on typical situations, with details modified to protect privacy while maintaining realistic contexts relevant to Hong Kong's social and economic environment
